ABSTRACT
This chapter presents some exploratory insights; it is based on case studies, supplemented by a preliminary quantitative study from a developing economy context (i.e. the software industry in Bangalore), concerning the role of the Internet in the internationalization of small knowledge-intensive firms (SKIFs). Three main points are made in this chapter. First, the Internet holds great promise in facilitating the internationalization of small firms – especially those in peripheral regions like developing economies; the four Bangalore-based small case-firms shared this view. Second, Internet technology notwithstanding, traditional aspects of business such as the importance of face-to-face interaction and the building of trust remain vital; here a potential facilitator for small firms to overcome this barrier comes in the form of Internet-supported intermediaries. Third, ultimately the prospect that the Internet holds for internationalizing resource-poor firms is that of international growth; a preliminary study of 30 Bangalore-based small software firms suggests that this notion holds credence and is worthy of further study, on a larger scale. These findings have implications for future research, practice and policy making in terms of taking a holistic view of the use of Internet technology and the leveraging of social capital.
