Theory review: critical success factors for internationalization of small and medium-sized enterprises

Abstract

Internationalization of small and medium-sized enterprises is getting more attention from researchers who study different paths, strategies, entry modes and their behavior on international market, while also identifying their limitations, potential risks, and threats. Globalization, especially the growth of online sales channels and fast (and affordable) communication have simplified the complexity of internationalization, which has made it easier for small and medium-sized enterprises to participate in the international market. Gradual step-by-step internationalization process and long-term planning have been replaced with new, fast market entrance strategies. Lately, many companies are being founded that put their focus and operational activities on internationalization from the beginning (born global). This paper gives an overview of the main internationalization theories (traditional internationalization theory, the network theory, and international entrepreneurship theory) and discusses their importance. Additionally, it examines the motives for the internationalization, main barriers, main risks, and explores the critical success factors that are important in the process of internationalization. Information provided can be useful to the companies that consider expanding their business operations abroad.

Organizational use and adoption of social media through TOE framework

“…Small and medium-sized enterprises are important for the country's economic development and growth (Morić Milovanović & Cvjetković, 2021). In 2020, a total of 138.618 SMEs were operating in Croatia, representing a share of 99,7% of the overall number of enterprises (CEPOR, 2022).…”