Drivers and dynamic processes for SMEs going global

Abstract

Many, if not most, small-medium enterprises (SMEs) are subject to the impacts of and when they have to venture into the world-trade system, this adds another dimension of challenge to their already difficult environments. A recent project undertaken by Polish, Italian, Norwegian and UK collaborators examined eight case studies of disparate smaller companies with international operations, two in each of the countries represented. This article draws together a number of common features surrounding the process of going global, and the challenges experienced by those firms. These include the stretching of capabilities in supporting customers in unfamiliar markets, the internal competition for funds in pursuing multiple international markets, the importance of word-of-mouth marketing, and the pressures on SMEs' R&D functions. It also highlights the critical importance of balance in smaller enterprises where resources are likely to be tightly constrained, and observes that while some of the challenges apply to many firms and other contexts, they are especially critical in SMEs. Yet awareness of them by those directly involved at the time may be low.

The Internationalisation Process of the Smaller Firm: An Examination of the Craft Microenterprise

“…Key research themes relating to the exporting SME include the investigation of the process itself [36,37], market entry and the role of the decision maker [38], SMEs and globalisation [39], exporting stimuli [40], export problems and barriers [41,42], the link between firm/managerial characteristics and exporting competencies [43] and export stimulation measures [44]. Other issues investigated include comparisons of non-exporters versus exporters [45], networking and the entrepreneurial exporter [15,46], the impact of the internet on SME domestic and export behaviour [47], export market information gathering [48] and the use of creativity to overcome resource constraints [49].…”

Business networks and the competitiveness of small manufacturing firms in Sweden's northern periphery

“…Complementarily, the lack of strong correlation between the proportion of international customers and suppliers tends to support the idea that increased export performance does not induce a disconnection of firms from domestic markets and that the firm decision to export can have multiple reasons linked to performance in the domestic market. This point was made by Winch & Bianchi (2006) on the basis of a European study that argued that for some small firms the decision to export can stem from a growth strategy based on the geographical expansion of their market basis or a survival strategy grounded in relative failure on the domestic market that necessitates the location of new markets more adapted to what they offer.…”

International market development

“…Particular research has also been devoted to the internationalization of small firms (Fillis, 2001;Blankson et. al., 2006;Winch & Bianchi, 2006). In addition, there has been a growing interest and recognition that marketing in the small firm is different from that in the large firm (Carsson, 1985(Carsson, , 1990Gilmore et al, 2001).…”