An Intercultural Comparison of the Internationalization Strategy Between China and Germany—A Case Study How Networks Influence the International Strategies of SMEs

Abstract

Research that deals with the internationalization strategies of MNEs (multinational enterprises) but also SMEs (small and medium-sized enterprises) stays popular. The increasing number of publications still leaves many worth knowing research gaps and unanswered questions. SMEs and MNEs act different in the internationalization process because of their different available resources. SMEs need special attention because in every economy the big number of SMEscompared to the small number of MNEsplays a very important role. It is shown that networks are important for SMEs during their internationalization process. This study takes a closer look at the internationalization of SMEs from the IT (information technology) and manufacturing industry and compares the global strategies in different steps of the internationalization (pre-phase to post-phase). The focus during this process is kept on the network activities because of its unique characteristic to compensate the limitations of SMEs. Based on the network approach this study uses a multiple case-study method to explore the strategy development, changes and realization of SMEs in China and Germany. The results of this study point out differences during the internationalization process and the significant role of networks during that process.