ABSTRACT
Numerous theoretical lenses have been employed to increase the understanding of SMEs’ international strategies. There are an increasing number of books and articles dealing with this issue. There are, however, only a limited number of articles that deal with SMEs’ internationalisation strategies related to the European integration. In this sense, this literature survey delivers some useful insights. In order to answer the three hypotheses an empirical survey becomes necessary. It is obvious that the Single Market Programme, with its removal of
NTBs, facilitated SMEs’ international transactions despite some persistent problems. Through the reduction of border delays and red tape, and the harmonisation of technical standards, EU trade became cheaper. It is important to note that the internal market delivered proportionally greater benefits to SMEs than to larger firms, especially in sectors where there was a high incidence of NTBs.1 In these sectors SMEs had to respond to the enlarged market through an increase in their international transactions. If the firm was able to exploit its competitive advantage efficiently on a national level before the removal of NTBs, the firm had to exploit this same competitive advantage in other EU countries after the establishment of the EMU in order to stay competitive. SMEs that were already highly internationalised felt some incentives to increase their internationalisation activities or to change their foreign-market entry strategies. In some cases, extra-EU transactions were replaced by intraEU transactions. Like SMEs outside industrial districts, the removal of NTBs affected
SMEs located within such districts. Due to their higher degree of internationalisation, firms located in industrial districts2 might have been even more affected through the 1992 market opening than firms located outside the districts. One of the main characteristics of an industrial district is its high degree of inter-firm cooperation. In order to meet increased market demand they have to intensify the cooperation with the partner firms in their industrial district. One can consider the removal of NTBs within the EU as a push-factor
for SMEs located both inside and outside industrial districts. However,
the changes regarding industrial districts are interesting. First, inter-firm relationships in industrial districts may be affected by the 1992 market opening, and second – which can be considered as a consequence – the international competitiveness of the whole industrial district may change. Perhaps only the ‘fittest’ industrial district in each industry may survive within the EU in the long term. In order to answer these open questions, in particular the three
hypotheses based on the literature survey, empirical research is necessary. Part II of this book therefore begins with a short description of the empirical approach.
