Pre-Internationalization Process of SMEs

Abstract

Although there has been a considerable amount of research focused on explaining SME internationalization behavior, the pre-internationalization phase has been left relatively ignored. This paper has recognized the need for a new, and more updated, pre-export model which more accurately explains the pre-export behavior of Born Globals as well as the impact of technological advancements on a decision-makers' perception of stimuli. Through a multiple case study confronting Wiedersheim-Paul's et al (1978) pre-export model, two concrete findings were made. Firstly, and contrary to the model, the pre-internationalization processof Born Global begins before a firm's inception. This is exemplified by a decision-makers' recognition of foreign business opportunities through the perception of stimuli without the influence of firm characteristics and the firm environment. On the contrary, the research also concludes that, although outdated, the pre-export model still provides an adequate description of the pre-export behavior of Traditional Firms.