Globalization and Entrepreneurship: Entrepreneurs Facing the Ultimate Challenge

Abstract

After characterizing regionalization/internationalization/globalization, the paper discusses criteria for and dimensions of these concepts. It presents then results from an international longitudinal survey (Interstratos 1991/1995) among 3000 SMEs in eight European countries. Two questions of internationalization in European SMEs are answered: Which forms of internationalization (direct export to agents, direct export to customers, granting licence, cooperation, joint venture, distribution subsidiary abroad, manufacturing subsidiary abroad) appear to be predominant? Which are success factors in the perception of the entrepreneurs? The paper results in pragmatic rules and principles for SME internationalization.

The Effect of Intangible Resources and Competitive Strategies on the Export Performance of Small and Medium Sized Enterprises

“…Despite these dramatic transformations in the international marketplace, a large number of Small and Medium Sized Enterprises (SMEs) are not yet represented in the international economy as much as large firms are (Fujita, 1998). However, the global competition is an inescapable reality for those SMEs who traditionally have a small financial base, a domestic focus and a limited geographic scope or stayed within their national boundaries (Barringer and Greening, 1998;Pleitner, 1997). Exporting has become an increasingly popular strategy for SMEs as spreading business risks across different markets, generating more revenues and providing a better profit base for shareholders (Keegan and Green 2005;Terpstra and Sarathy 2000).…”

Managing the Challenges of Globalization: Evidence from Swiss Small and Medium-sized Enterprises

“…It is assumed within the stage model theory that the process of internationalization is a unilinear evolutionary process with incremental stages (Welch and Luostarinen, 1988;Pleitner, 1997). It also assumed that the process has as a cyclical evolution pattern with a more differentiation character (Haahti et al, 1998).…”

“…It also assumed that the process has as a cyclical evolution pattern with a more differentiation character (Haahti et al, 1998). Pleitner (1997) presented a six-stage model of internationalization. Within this perspective, it is assumed that the firm is bound to choose a certain method or mode of operation through which it services customer needs in foreign markets (Ahokangas, 1998).…”

“…However, stage models of internationalization Vahlne, 1977, 1990) indicated that the firm would usually start with direct export from the home country, and then gradually increase its capital and management involvement in the host country through licensing agreements, strategic alliances and various forms of FDI such as the development of joint ventures or subsidiaries. Pleitner (1997) reported that SMEs can use a variety of internationalization modes, which in turn lead to increasing internationalization activities. Hence:…”

Issues in Internationalization and Their Impact on Performance of Internationalized SMEs in Sri Lanka

“…Due to modern trade oriented economic policies and technological developments, it is essential for even SMEs to consider international opportunities in order to survive and succeed in the competitive market environment. According to Ruzzier et al (2006) (Pleitner, 1997). But today many are actively involving in business operations more than one country and most of them are running their operations successfully in one or two regions.…”