Key decisions and changes in internationalization strategies: The case of smaller firms

Abstract

The purpose of this paper is to examine the internationalization of Small and Medium-Sized Enterprises (SMEs) in the mechanical manufacturing sector. The focus of the paper is on the factors affecting both the strategic choices and the changes that occurred during the internationalization process, after the first foreign market entry. To accomplish this goal, quantitative research has been performed through a survey on entrepreneurs and managers of 60 Italian SMEs. The questionnaires collected were used to perform a cluster analysis in order to identify various groups of companies exhibiting similar behaviours. This study provided a valuable contribution to the knowledge of SMEs' internationalization in general and of the mechanical sector in particular, showing the importance of analysing when a firm decides to change its markets or its entry mode, along a continuum of reactive versus proactive changes.

Keywords:

• internationalization process
• international strategy
• small to medium-sized enterprises
• strategic change
• entry mode strategy
• market strategy