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Internationalization of SMEs in India: Fostering entrepreneurship by leveraging information technology

Patricia R. Todd (Western Kentucky University, Bowling Green, Kentucky, USA)
Rajshekhar (Raj) G. Javalgi (Department of Marketing, James J. Nance College of Business, Cleveland State University, Cleveland, Ohio, USA)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 17 April 2007



This paper aims to focus on the determinants influencing the internationalization of small and medium‐sized enterprises (SMEs) in India. The objective is to investigate and evaluate the business environment and, then, examine the importance of developing and promoting entrepreneurship to allow SMEs in India to develop a competitive position in the international marketplace. It is proposed that the primary method for fostering or promoting the growth of entrepreneurship is through the utilization of technology.


An overview is provided of the current economic situation facing SMEs in India. Then factors necessary for the expansion of the business are discussed, along with the challenges of overcoming the resource gaps identified. The importance of fostering entrepreneurship is presented. The current state of technology is then evaluated. The paper concludes with an assessment of challenges and implications for future expansion.


Information is provided concerning the current situation for SMEs in India and the challenges encountered as they face a business environment that is becoming more competitive. Several factors are identified that must be addressed before the SME can achieve international growth, specifically the utilization of technology. Special attention is given to the gaps in infrastructure that could enable a more efficient use of resources and the impact of entrepreneurship on the economic growth of the SME.

Practical implications

Advancements in information technology and improvements in communication infrastructure have resulted in opportunities for SMEs to participate in global markets in both developing and developed countries. Since, governmental reform in 1991, SMEs in India have been faced with new competitive intensity. Improvements in resource utilization make it possible to sell a variety of products and services from anywhere in the world, around the clock. This paper calls attention to ways in which Indian SMEs can become competitive.


This paper integrates entrepreneurship, resource‐based view, and internationalization of SMEs in India, specifically focusing on the use of technology.



Todd, P.R. and Javalgi, R.(R).G. (2007), "Internationalization of SMEs in India: Fostering entrepreneurship by leveraging information technology", International Journal of Emerging Markets, Vol. 2 No. 2, pp. 166-180.



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