ABSTRACT

This chapter explores a literature review of the network approach to the internationalization of medium-sized enterprises (SME) and intra-firm network coordination issues. The network approach has attracted particular attention in the context of SMEs internationalization. Business networks allow SMEs to acquire knowledge about foreign markets and access to missing resources and capabilities, as well as helping them to reduce market entry barriers and obtain valuable knowledge about international market opportunities. SMEs are likely to strongly rely on social capital and, as soon as they grow, their dependency on network capital becomes even more important. Prior research often refers to individual and collective levels of the network system. As for the network resources, social capital is seen as an individual-level resource, while network capital is seen as a firm-level resource. Gerflor is a French company that produces and sells flooring and wall protection solutions.