Field of study: International Business/International Entrepreneurship
Small and Medium-Sized Enterprises:
Definitions, Economic Functions and
Determinants of Internationalisation
This study investigates a number of motives stimulating the internationalisation of small and medium-sized enterprises (SMEs).The internationalisation of SMEs usually is not part of a strategy but a reaction to a stimulus. An internationalisation stimulus is a factor fostering a firm’s decision to start or maintain committing some resources to act on an international basis. The reaction to stimuli is an indicator for the flexibility of SMEs. It is an interesting point that flexibility helps small firms to overcome the lack of financial resources and is their advantage with regard to internationalisation.
After dealing with different definitions of "small" and "medium" with regard to enterprize size and evaluating on the economic functions of smaller firms this work explains the ten following internationalization stimuli:
- Potential for extra growth/sales/profit
- Production of goods with unique qualities
- Influence of decision maker
- Orders from abroad
- Saturation/shrinkage in domestic market
- Intense competition of domestic market
- Networking
- Fulfilling an international need
- Limitation of trade barriers
- Global trade infrastructure
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Theoretical Background
- 2.1. Small and Medium-Sized Enterprises
- 2.2. Internationalisation
- 2.3. Export
- 3. Economic Functions of SMEs
- 3.1. A Pluralistic Economic Structure
- 3.2. Job Creation
- 3.3. Economic Growth
- 4. Motives for SMEs to Internationalise
- 4.1. Internal and External Motives
- 4.2. Early Stages of Research
- 4.2.1. Internal Motives
- 4.2.2. External Motives
- 4.3. Modern Approaches of Research
- 4.3.1. Internal Motives
- 4.3.2. External Motives
- 5. Discussion
- 5.1. Justification
- 5.2. Summary
- 5.3. Practical Implications
- 6. Limitations and Further Research
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to investigate the motives driving the internationalization of small and medium-sized enterprises (SMEs). It focuses on understanding the stimuli that encourage SMEs to engage in international business, contrasting this with the strategic approaches of larger enterprises. The study also explores how SME flexibility allows them to overcome resource constraints in international markets.
- The definition and characteristics of SMEs.
- The concept of internationalization and its various modes, particularly export.
- Internal and external motives driving SME internationalization.
- The economic functions and contributions of SMEs.
- The practical implications of understanding SME internationalization motives.
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This chapter introduces the study's focus on the motives behind SME internationalization, highlighting the difference between SMEs' reactive approach and large-scale enterprises' strategic planning. It emphasizes the importance of understanding the stimuli that foster SMEs' international involvement, noting the significance of flexibility in overcoming resource limitations. The chapter also previews the study's structure, outlining its progression from defining SMEs and their economic roles to analyzing the internal and external motives behind their internationalization, ultimately aiming to provide practical implications for businesses.
2. Theoretical Background: This section lays the groundwork for the study by defining key terms: SMEs, internationalization, and export. It addresses the lack of a universally accepted definition for SMEs, presenting variations across the EU, USA, and other countries based on employee numbers and turnover. The chapter clarifies the concept of internationalization as engagement in cross-border commercial transactions, differentiating between various orientations (marketing, profit, procurement), and highlighting the predominant marketing orientation for SMEs. Export is then defined and positioned as the initial stage of internationalization for many SMEs, emphasizing its advantages in terms of manageable resources, low risk, and flexibility.
3. Economic Functions of SMEs: This chapter explores the significant economic contributions of SMEs. It discusses the role of SMEs in fostering a pluralistic economic structure, their contribution to job creation, and their impact on overall economic growth. The chapter likely details the diverse roles SMEs play in a market economy and their importance in generating employment opportunities and overall economic development. It provides economic justifications for focusing on this sector within the context of international business.
4. Motives for SMEs to Internationalise: This chapter delves into the core of the research, examining the internal and external motives pushing SMEs towards internationalization. It will likely analyze these motives through various lenses, potentially differentiating between early and modern research approaches, and exploring a range of factors, both internal (e.g., proactive management decisions, entrepreneurial ambitions) and external (e.g., market demand, competitive pressure, opportunities). The chapter will likely compare and contrast the different theoretical perspectives and empirical findings, providing a comprehensive overview of the various push and pull factors that influence SMEs’ decision to enter international markets.
Schlüsselwörter (Keywords)
Small and Medium-Sized Enterprises (SMEs), Internationalization, Export, International Business, Motives, Stimuli, Economic Functions, Flexibility, Internal Motives, External Motives, Market Orientation, Resource Constraints.
Frequently Asked Questions: A Comprehensive Language Preview of SME Internationalization
What is the overall focus of this language preview?
This preview provides a comprehensive overview of a study investigating the motives behind the internationalization of small and medium-sized enterprises (SMEs). It includes the table of contents, objectives and key themes, chapter summaries, and keywords.
What topics are covered in the Table of Contents?
The table of contents outlines the structure of the study, covering an introduction, theoretical background (including definitions of SMEs, internationalization, and export), the economic functions of SMEs, the motives for SME internationalization (categorized into internal and external motives, with distinctions made between early and modern research approaches), a discussion section, and a conclusion on limitations and further research.
What are the main objectives and key themes of the study?
The study aims to understand the factors driving SMEs to engage in international business, contrasting this with the approaches of larger enterprises. Key themes include the definition and characteristics of SMEs, the concept of internationalization and export, internal and external motives for SME internationalization, the economic functions of SMEs, and the practical implications of understanding these motives.
What are the key findings summarized in each chapter?
Chapter 1 (Introduction): Introduces the study's focus on SME internationalization motives and highlights the importance of SME flexibility. Chapter 2 (Theoretical Background): Defines key terms like SMEs, internationalization, and export, addressing variations in SME definitions across countries. Chapter 3 (Economic Functions of SMEs): Explores the significant economic contributions of SMEs, including job creation and economic growth. Chapter 4 (Motives for SMEs to Internationalize): Delves into internal and external motives for SME internationalization, analyzing these through early and modern research approaches.
What are the key limitations and areas for further research?
This information is not explicitly detailed in the provided preview but is mentioned as a topic covered in the final chapter.
What are the key words associated with this study?
Key words include: Small and Medium-Sized Enterprises (SMEs), Internationalization, Export, International Business, Motives, Stimuli, Economic Functions, Flexibility, Internal Motives, External Motives, Market Orientation, Resource Constraints.
What is the target audience for this language preview?
This preview is intended for academic use, allowing for the analysis of themes in a structured and professional manner.
What type of research methodology is used (Qualitative, Quantitative, or Mixed Methods)?
The preview doesn't specify the research methodology used in the study.
- Citar trabajo
- Lisa Hohneck (Autor), 2013, Small and Medium-Sized Enterprises, Múnich, GRIN Verlag, https://www.grin.com/document/229712
