International strategy for SMEs: criteria for foreign markets and entry modes selection

Abstract

Purpose

The purpose of this paper is to examine the internationalization of small- and medium-sized enterprises (SMEs) in regard to the international market selection (IMS) and entry mode selection (EMS) processes.

Design/methodology/approach

To achieve this, an examination of the degree of systematic/active behaviour during IMS and EMS on a sample of 221 SMEs was conducted. Moreover, the paper sought to comprehend whether SMEs select foreign market and entry mode in a separate and sequential way, and whether there is a relationship between the sequentiality of IMS and EMS, on one side, and SME behaviour during these two processes, on the other side.

Findings

Results revealed that SMEs have a non-systematic and passive behaviour during IMS and EMS, respectively. Moreover, a high predilection in performing the two processes contemporaneously or without any logic was found. Finally, a strong relation between sequentiality of IMS and EMS and degree of systematic and active behaviour during the processes existed.

Originality/value

In this study, using a sample of SMEs located in a region of Italy, SME behaviour in the IMS and entry mode choice processes was tested.

Citation

Musso, F. and Francioni, B. (2014), "International strategy for SMEs: criteria for foreign markets and entry modes selection", Journal of Small Business and Enterprise Development, Vol. 21 No. 2, pp. 301-312. https://doi.org/10.1108/JSBED-10-2013-0149