The influence of the Internet in the internationalization of SMEs in Taiwan

Abstract

This paper examines internationalization processes in the context of the Internet economy and presents some exploratory insights; it is based on case studies, supplemented by a preliminary quantitative study from a developing economy context, concerning the role of the Internet in enhancing the internationalization of small and medium enterprises (SMEs). Three main points are made in this paper. First, the Internet holds great promise in facilitating the internationalization of SMEs – especially as a marketing tool, and the communications. And the degree of internationalization (DOI) is positively correlated with the degree of electronic commerce (DOEC). Second, Internet technology has little influence on the SMEs' choice of entry mode. Third, stage-based theories do not reflect company experience in Internet economy; a preliminary study suggests that this notion is worthy of further study on a larger scale. These findings have implications for future research, practice and policy-making in terms of taking a holistic view of the use of Internet technology.