Small Firms in Foreign Markets

Paper Summary:

The paper explains that the recent wave of internationalization or globalization of business was spurred by a combination of advances in transport and communications technologies. The paper discusses how many small and medium size enterprises ("SMEs") still lack the resources, knowledge and networks needed to actively engage in even the first steps of internationalization, which is exporting. The paper reveals that it is a lack of resources that is one of the main causes limiting the growth of small and medium-sized businesses in international markets. The paper concludes that there are certain benefits to being an SME engaged in exporting.

From the Paper:

"According to James Cooke writing in Logistics Management and Distribution Report, a company usually first tries to gain a foothold in a foreign market by exporting into that country. After it has generated sufficient sales revenues through exporting, to be convinced that there is strong demand for its products, a company will study the market to determine its growth potential. If the company believes that a foreign operation has a reasonable chance to be profitable, it may invest more money."

Sample of Sources Used:

• Svante Andersson., Jonas Gabrielsson., Ingemar Wictor."International Activities in Small Firms: Examining Factors Influencing the Internationalization and Export Growth of Small Firms." Canadian Journal of Administrative Sciences. 21.1 (2004): 22-32.
• Cooke, James. "How Rich Products Went Global." Logistics Management & Distribution Report. 37.9 (1998): 48-49.
• Etemad, Hamid. "Internationalization of Small and Medium-sized Enterprises: A Grounded Theoretical Framework and an Overview." Canadian Journal of Administrative Sciences 21.1 (2004): 1-22.
• Gemser, Gerda., Maryse Brand., Arndt Sorge. "Exploration of the Internationalization of Small Businesses." Management International Review 44.2 (2004): 127-151.
• Kalantaridis, Christos. "Internationalization, Strategic Behavior, and the Small Firm." Journal of Small Business Management 42.3 (2004): 245-263.

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