Mode of Entry Strategy on SMEs Internationalization in East Java: A Review of Literature

Abstract

This study review the internationalization of SMEs in East Java from a literature and empirical perspective with the aim of providing in-depth knowledge based on the existing literature and supported by empirical data generated from previous research. This study uses content analysis of current theories and models coupled with empirical analysis of the internationalization studies of SMEs that have been carried out. There are several theories and models, such as the internalization theory, the eclectic paradigm, the Upsala model, the network perspective that connects the internationalization strategy of SMEs in East Java, and several modes of entry for internationalization. The theory is based on the basic resource-based view and network theory. Documented evidence shows that the internationalization strategy of SMEs in East Java still has many obstacles and challenges. Theoretically, the internationalization strategy related to the mode of entry leads to networking. Empirical data supports that the strategy mostly carried out by SMEs in East Java is networking independently. The results of this study are expected to contribute ideas for policymakers, in this case, the government, to play a more active role with long-term strategies for the success of the internationalization of SMEs in East Java.