International market development: The small and medium sized firm’s opportunity or dilemma

Abstract

Purpose

The purpose of this paper is to investigate the international market development process in small- and medium-sized exporting firms (SMEs) and to examine the influence of “unexpected market events” in relation to actual market activities.

Design/methodology/approach

The discussion is illustrated with a multiple case study. The data in the cases were collected by using secondary data, but also through face-to-face interviews with export executives in the firms. The cases for this research were selected on the basis of suggestions from the Swedish Export Council who applied their own interpretations of firms that have shown rapid export development.

Findings

SMEs are becoming more involved in international activities and exhibiting market behaviours not previously seen. The recognition that internationalization is affected by multiple influences has led to a growing interest in contingency approaches. The findings in the study are illustrated by a typology of international market behaviour.

Research limitations/implications

The study is limited to a few exporting firms within the manufacturing industry so the results of the study can only be tentative.

Practical implications

The number of SME firms operating in international markets has grown. The findings in this paper emphasize the importance of the fact that management has the interest, experience and commitment necessary for international activities.

Originality/value

The interest in the study is focused on capturing the steps in the development process that diverts internationalization in a firm from the traditional path of exporting in SMEs. The multiple case studies illustrate the fact that unexpected market events can influence the firm’s marketing behaviour and the international marketing strategy.

Citation

Rundh, B. (2015), "International market development: The small and medium sized firm’s opportunity or dilemma", Management Decision, Vol. 53 No. 6, pp. 1329-1354. https://doi.org/10.1108/MD-10-2014-0621