ANALYZING THE INTERNATIONALIZATION OF SMALL AND MEDIUM ENTERPRISES (SMEs)

Abstract

This article investigates the processes and influential factors affecting the internationalization of small and medium-sized enterprises (SMEs). Internationalization of SMEs has been widely researched but little is known of how and why internationalization takes place in developing country. The aim of this paper is to study the internationalization theories, such as the incremental and rapid internationalization models, networking, resources-based and international entrepreneurship perspectives. The article is based on an in-depth qualitative study of data collected from books, articles, web and e-books. The analysis is a descriptive process, through literature study that collecting information, summarizing the research, classifying the data and then describing the variables. The conclusion of this study is centered on key personnel and firm competencies as the main drivers of internationalization. The entrepreneurs’ knowledge (experience), behavior and cognition are identified as an attribute of the firm that influences internationalization decisions. In addition, the successful engagement in international markets depends on the ability of management in a firm to recognize, set the appropriate strategies and exploit opportunities by consider the internal and external factors. More importantly, the study suggests that networking relationship create internationalization awareness and provide appropriate pathways to internationalization.

Keywords: internationalization, small and medium enterprises