Promotion agencies and SMEs’ internationalization process: A blessing or a curse?

Abstract

Despite the growing interest in research about the role of promotion agencies on small- and medium-sized enterprises’ (SMEs) internationalization, little is known about the impact of such agencies and programs on equity modes of entry. Scholars focused on export at the expense of other forms of internationalization as SMEs traditionally favored non-equity modes of entry due to their limited resources and competences. However, more and more SMEs are switching to equity modes in both emerging and mature economies in order to internalize the transaction-related risks, protect their assets, get closer to their customers, or gain competitive advantages. We conducted a multiple study with five French manufacturing SMEs to highlight the main motivations driving them to use promotion agencies. Particular attention is being paid to the type of support needed, its’ impact on the internationalization path, and the main difficulties faced by SMEs during this process.