Abstract
Existing studies have mostly focused on internationalisation decisions of small and mid-sized enterprises (SMEs) from either developed economies or large developing economies. This paper fills a gap in the literature by focusing on SMEs in a small economy. A qualitative approach, utilising in-depth interviews, was adopted to discover the effects of resource endowments and psychic distance on where, why, and how firms expand business internationally. Executives from five key business-to-consumer sectors were interviewed. Findings show how the firms perceived and responded to global competitive developments and how resource endowments and psychic distance affected international market research, market selection, and market development decisions.
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