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Sme Internationalization Model

895 Words4 Pages

The aim of this study was to present an overview of SMEs internationalization process through presenting the concept of internationalization and its main approaches, SMEs characteristics and SMEs motives for and barriers to internationalization.

Globalization of economy and the aggressive competition motivate companies to investigate ways of internationalization and contribute significantly to nation 's economic development. Internationalization is a complex phenomenon. Complexity was expressed as "the state of having many different parts connected or related to each other in a complicated way". Related literature explains that internationalization is a phenomenon influenced by different variables. These include decision maker, network, firm characteristics, culture and environment.

On the other hand, it has been demonstrated that SMEs are important players in contemporary economies. They are dynamic, adaptable adjust effectively to changing economic conditions. Most likely, the continuous processes of internationalization and globalization mean both opportunities and risks for SMEs. Opportunities exist in the abilities to utilize all current outcomes, which are made by continuous …show more content…

Around then it created the impression that a holistic approach to internationalization was better prepared to mirror the more sophisticated forms of firm’s international activities. It was because, the number of firms that worked in global markets was growing. SMEs driven by global patterns were frequently forced to form strategic alliances, go into cooperative manufacturing arrangements, acting as both licensee and licensor or both franchisee and franchisor. Moreover, the holistic approach was additionally a more proper depiction of the association of "born global" SMEs, transnational firms undertaking international business in new electronic

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