Internationalization Strategy for Small Medium Enterprises (SMEs)
Internationalization of Small Medium Enterprises (SMEs) has been shown to have big contribution to SMEs growth. It is found that an SME s age to internationalize has a negative moderating impact on the relationship between internationalization and firm growth. This study examines the steps for SMEs, especially low-tech SMEs, to enter foreign market in the early age of the firm. Two months observation in one Taiwanese automobile parts and accessories SME and deep interview with the CEO are held. It is found that the need of human resources with international entrepreneurial orientation is the first step of SMEs internationalization process. The next step needed is international preparation. It is found that supplier relationship management and social networking are the most important elements need to be prepared in the initial stage of internationalization process. Supplier can act as piggy backing for SMEs in access resources to enter international market, whereas social networking provides the easiest way for SMEs to enter international market. It is also found that marketing management and operation management is necessary to enhance SMEs internationalization performance.