ABSTRACT
In this chapter we explore the internationalization paths of SME-scale competitors growing into the global economy, particularly those doing so from an isolated home market. We ask in particular whether the small size and isolation of these fi rms might lead to patterns of internationalization distinct from those theorized for much larger enterprises growing out from much larger and more globally integrated economies. Specifi cally, our study investigates what happens to a fi rm’s marketing, product scope and manufacturing strategies as its geographic market scope expands. By comparing these trajectories to those predicted by current internationalization theory, we are led to conclude that SMEs face a binary choice between two radically different strategies for internationalization. While one of these has been recognized for some time in the born global model, the existence of its opposite has not previously been identifi ed. Furthermore, the two pathways encourage SMEs to adopt strategies that are, in important respects, diametrically opposite to those predicted by the stages model of large-fi rm internationalization.
