SME Internationalization: Exploration of Unknown Territories by Strategically Seizing Serendipity

Abstract

AbstractBased and secured on resources and rational strategic decisions, large companies’ internationalization paths may not work for small and medium-sized enterprises (SMEs). Multinational enterprises (MNEs) operate with far more different structural resources and conditions, which shapes their decision-making processes and balances the ambiguities that come along with it. SMEs going international, on the other hand, face very different circumstances than MNEs. As a result of their limited market knowledge, scarce resources, and little international experience, SME entrepreneurs rely heavily on partnerships, alliances, and networks. The internationalization process of an SME is only rarely driven by rational motives and clearly planned phases but occurs by chance and opportunistic situations. Moreover, since SMEs face scarce resources, they often have no other choice than to trust and follow the intuition of a decision-maker who is characterized by trust and self-confidence. SME internationalization thus reflects a personal hunch on the part of the entrepreneur as well as muddling-through processes rather than the rational pursuit of clear goals. The case of “NatureYou” going international points on the important role of the SME decision-maker and the alternative SME internationalization paths.KeywordsSME internationalizationSME decision-makerEffectuationIntuitionSerendipityTrustworthy networks