Alternative Modes of Export Entry for SMEs from Emerging Economies

The primary purpose of this study is to investigate the specific issue of modes of export entry of small and medium-sized enterprises (SMEs) that originate from emerging economies. Four theoretical frameworks on the process of internationalization (i.e. FDI, stage models, network perspective, and organizational capability perspective) are reviewed with respect to the internationalization of SMEs. Direct and indirect exporting are compared based on transaction cost analysis (TCA) and the network perspective. Problems arising from the use of extant independent export intermediaries are highlighted with a recommended remedy. After analyzing the situation and the nature of SMEs from the emerging economies, propositions on alternative modes of export entry for such firms are postulated.