Learning from critical internationalization events: Insights from two fast growing Italian SMEs

This study explores how critical learning events can impact the entrepreneurial learning process and, in turn, the entrepreneurial orientation (EO) of the firm. We analyze de-internationalization episodes of successful firms as critical learning events. This research moves away from previous static approaches and develops a more dynamic perspective on the processes that nourish and affect entrepreneurial learning and, in turn, EO. The novelty of the extant contribution resides in the fact that we concurrently investigate the dynamics that unfold beyond the development of entrepreneurial knowledge, and the process by which experiences – developed in consequence of critical learning events - are transformed into entrepreneurial knowledge. To do this, we leverage a number of different theoretical perspectives coming from organizational learning, international business and entrepreneurship (cf. section 2). Entrepreneurship literature has widely demonstrated that critical experiences (critical events) can act as ‘triggers’ for organizational growth, entrepreneurial development (Cope, 2003), and organizational learning (Corradi, 2014). At the same time, little is said currently about specific critical events - such as experiences of de-internationalization - seen as occasions of entrepreneurial learning from (also modest) failures along the growth path of successful firms. In addition, there is a paucity of research about how critical learning events along the internationalization processes can recursively affect the (international) EO. Perhaps the time is ripe for a re-conceptualization of EO as something that can evolve over time in consequence of learning processes nourished by critical learning events (Francesconi & Dossena, 2014). In doing so, we address a further gap. To date, only few works have argued that EO might ‘evolve’ over time (Kreiser, 2011; Wales et al., 2011; Wiklund & Shepherd, 2011). Moreover, to our knowledge, no previous works have demonstrated that EO might change in consequence of learning processes at firm level. However, some authors suppose a reciprocally causal relationship between EO and learning (e.g., Anderson et al., 2009; Kreiser, 2011). Anderson et al. (2009) suggested that the enactment of entrepreneurial strategies generates knowledge that becomes the basis for further entrepreneurial initiatives. In any case, the theoretical mechanisms behind such knowledge generation and exploitation remain underexplored. To address the aforementioned gaps, and because of its exploratory nature, we follow a qualitative approach of multiple case study induction (Eisenhardt, 1989) analyzing two successful Italian firms in the hi-tech industry. Despite their successful growth in terms of portfolios of business and revenues, the two firms underwent a number of (modest) failures in their internationalization process. We dig into these two critical learning events and – cross-comparing our cases – we advance a novel conceptual framework more consistent with the aforementioned dynamic perspective.