Early-stage technology-based firms are confronted with the complexity of foreign markets and global competition Sram their earliest stages of development. Not only must technology entrepreneurs keep pace with ever-changing technology-based product offerings, but they must also simultaneously stay abreast of competitors and industry trends in multiple countries. We surveyed 75 small technology-based firms in Ontario to evaluate their international activities and try to explain both the intensity of their foreign sales (the percent of total sales coming from foreign sources), as well as the global diversity of the markets in which they operate (the number of major regional areas from which they derive revenue). Our findings suggest that resources necessary to pursue international sales have an important impact on both foreign market intensity and diversity. In contrast, however, attitudes towards foreign markers helped to explain international intensity but not global diversity. Additionally, firm age was positively associated with global diversity but not international intensity. These findings support the notion of small technology firms being "instant internationals" but suggest that proceeding to the next step-achieving global diversity-requires significantly greater time and resources. In line with prior empirical research, these firms tended to increase their international intensity and diversity as they became larger In contrast with what the literature suggests, however,firms utilizing strategic alliances were no more active internationally than those not using strategic alliances. Finally, government assistance helped to explain the international intensity of these firms, but not the global diversity. These results help managers, researchers and shapers of public policy better understand the international activities of early-stage technology firms. Given the relationship between attitudes and international intensity there appears to be some opportunity associated with trying to influence the attitudes of CEOs regarding initial expansion into international markers. For firms to become globally diverse, however, there is a greater dependency on the availability of resources as well as accumulated business experience. Managers should recognize the pattern this suggests and perhaps be leery of becoming too globally diverse too quickly. Overall, the relationship between size an dfo reign activities suggests that growth opportunities are linked to international markets. Although some broad relationships are suggested regarding the need for collaboration and government support, further research is necessary to understand the use of strategic alliances as well as government assistance in both international market intensity and global diversity. (C) 1998 Elsevier Science Inc.
