The Impact of the Identity on the Internationalization Processes in SMEs - Does Origin Matter?

This paper examines if the identity shaped by the region does have an influence on the owner-manager's managerial behaviour. Two hypotheses have been formulated that are based on the identity theory saying that an individual's self consists of a set of different identities. The paper is based on an empirical study following a survey strategy. The sample consisted of SMEs from Austria, Germany, Liechtenstein and Switzerland. As technique the interviewer-administered questionnaire, using the telephone, was applied. The data were collected between October 2006 and March 2007. Eventually, 79 questionnaires were available to be included in the data analysis process. The hypotheses were tested applying hierarchical cluster analysis. The cluster analysis for the first hypothesis related to different levels of identities resulted in three clusters showing that the companies can be distinguished according to their expressive and/or instrumental behaviour. Interestingly, the third cluster is made of German SMEs only. The cluster analysis for the second hypothesis referring to different owner manager identities resulted in four clusters. Interestingly again, one cluster emerged comprising German SMEs only. The findings provide a fruitful base for a better understanding of the owner-manager's influence on the company's internationalization process and assist in developing specific policies for different characters of owner-managers. Furthermore, it suggests that owner-managers of small countries are made of other sets of identities compared with their German counterparts indicating a different course of action in terms of internationalization. Concluding, there is evidence that owner-manager identity can be categorized based on the owner-managers' origin.