The internationalization of SMEs and international entrepreneurship: a critique and policy implications

Abstract

An important policy challenge is the provision of support for small and medium sized enterprises (SMEs) seeking to internationalize. To guide practitioner resource allocation decisions, recent conceptual and empirical developments relating to SME internationalization are discussed. Different perspectives on internationalization are critically reviewed with regard to the following seven themes: the timing of internationalization; the intensity and sustainability of internationalization; the mode of internationalization; the influence of domestic environmental context on internationalization; the leveraging of external resources to internationalize; the unit of analysis; and the effect of internationalization on SME performance. Assuming an interventionist stance, a case for more balanced policy support towards SME internationalization is suggested that takes into account the diversity of SMEs (and entrepreneurs). Implications for researchers are discussed.