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Exploring the Role of Diversity Management During Early Internationalizing Firms’ Internationalization Process

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Abstract

Despite their rapid internationalization, early internationalizing firms (EIFs) struggle to sustain their growth over time. Among the factors influencing their internationalization process, the diversity of human resources, and particularly its management, has yet to be studied. Building on different perspectives of diversity management, through the lens of the resource-based view, this study explores the role of diversity management during EIFs’ internationalization process. The results of a multiple-case, qualitative study of French EIFs show that prevailing perspectives on diversity management within EIFs change with the nature of diversity as a resource (strategic, ordinary, or negative), with different influences on the firms’ progress along the phases of the internationalization process. The findings highlight the importance of adopting a learning perspective on managing diversity, including specific management practices, during the transition between the entry and post-entry phases of EIFs’ internationalization process. This study thus suggests several propositions and theoretical contributions, along with managerial recommendations.

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Notes

  1. See https://www.charte-diversite.com/.

  2. See https://travail-emploi.gouv.fr/emploi/label-diversite.

  3. For example, the statement reflecting the resistance perspective read, “Diversity is neither a subject nor a problem”; that for the discrimination and fairness perspective read, “Your company protects some employees to ensure fair treatment”; the access and legitimacy perspective indicated, “Your company respects the differences of each employee”; and the learning perspective was, “The company values the diversity of employees and makes them a source of competitive advantage.”

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Authors and Affiliations

  1. IREGE, University Savoie Mont Blanc, BP 80439, 4, Chemin de Bellevue, 74944, Annecy-Le-Vieux, France

    Angélique Breuillot

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  1. Angélique Breuillot
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Appendices

Appendix 1: Final Coding Sheet

Categories

N°

Themes

Codes

Nature

Respondent

1

Academic background

REP-BACK-ACA

Deductive

2

Professional background

REP-BACK-PRO

Deductive

3

Career within the firm

REP-ENT

Deductive

Firm

4

Turnover

ENT-TURN

Deductive

5

Turnover evolution

ENT-TURN-EVOL

Inductive

6

Activities

ENT-ACT

Deductive

7

Strategic objectives

ENT-STRAT-OBJ

Deductive

8

Growth strategy

ENT-STRAT-GROWTH

Deductive

9

Innovation

ENT-INNO

Deductive

10

Organizational innovation

ENT-INNO-ORGA

Inductive

11

Technological innovation

ENT-INNO-TECHNO

Inductive

12

Potential support received

ENT-SUPPORT

Deductive

13

Potential need in support

ENT-SUPPORT-NEED

Deductive

14

Difficulties met by the firm

ENT-DIFF

Inductive

15

Corporate social responsibility

ENT-CSR

Deductive

16

Founders/entrepreneurs

ENT-ENTREPRENEURS

Inductive

Internationalization process

17

Reasons to internationalize

INTER-REASONS

Deductive

18

Key dates

INTER-KEYDATES

Deductive

19

Penetrated market

INTER-COUNTRIES

Deductive

20

Mode of entry

INTER-MODE

Deductive

21

Devoted resources

INTER-RESOURCES

Deductive

22

Missing resources

INTER-RESOURCES-LACK

Inductive

23

Striking event

INTER-EVENT

Deductive

24

International turnover

INTER-CA

Deductive

25

Data on phase 1

INTER-PHASE 1

Deductive

26

Data on phase 2

INTER-PHASE 2

Deductive

27

Data on phase 3

INTER-PHASE 3

Deductive

28

Data on phase 4

INTER-PHASE 4

Deductive

29

Foreign Subsidiaries

INTER-SUBSIDIARIES

Deductive

30

Difficulties when internationalizing

INTER-DIFFICULTIES

Inductive

Diversity

31

Number of employees

DIV-NB-EMP

Deductive

32

Age diversity

DIV-AGE

Deductive

33

Cultural and national origin diversity

DIV-ORIGIN

Deductive

34

Knowledge diversity

DIV-KNOWLEDGE

Deductive

35

Language diversity

DIV-LANG

Inductive

36

Diversity of experience

DIV-EXPERIENCE

Deductive

37

Gender diversity

DIV-GENDER

Deductive

38

Reasons for the presence or absence of diversity

DIV-REASONS

Deductive

39

Evolution of diversity

DIV-EVOL

Inductive

40

Negative role

DIV-ROLE−

Deductive

41

Positive role

DIV-ROLE+

Deductive

42

Lack of diversity

DIV-LACK

Inductive

Diversity management

43

Diversity management practices

MANADIV-PRACTICES

Deductive

44

Diversity management practices that could be implemented

MANADIV-PRACTICES-FUTURE

Inductive

45

1- Resistance

MANADIV-1

Deductive

46

2- Discrimination and fairness

MANADIV-2

Deductive

47

3- Access and legitimacy

MANADIV-3

Deductive

48

4- Learning

MANADIV-4

Deductive

Relationship between concepts

49

Positive influence of diversity on internationalization

DIV→INTER=+

Deductive

50

Negative influence of diversity on internationalization

DIV→INTER=−

Deductive

51

Influence of diversity on innovation

DIV→INNO

Inductive

52

Influence of innovation on internationalization

INNO→INTER

Inductive

53

Influence of internationalization on innovation

INTER→INNO

Inductive

Appendix 2: Internationalization Processes of the Eight EIFs

figure a
figure b

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Breuillot, A. Exploring the Role of Diversity Management During Early Internationalizing Firms’ Internationalization Process. Manag Int Rev 61, 125–156 (2021). https://doi.org/10.1007/s11575-021-00440-3

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