Internationalization Of SMEs: Opportunities And Limitations In The Age Of Globalization

Abstract

Economic growth and innovation in this global environment are fuelled increasingly by small and medium-sized companies.  The purpose of this study is to examine the practices of small and medium-sized enterprises (SMEs) relative to exporting and outsourcing activities.  Data from an exploratory survey of 100 companies suggest that outsourcing of research and development activities has remained stable while the non-core activities such as manufacturing, distribution, and marketing activities continue to be outsourced at an accelerating pace.  The results also reveal that medium-sized firms are more involved in outsourcing of the non-core activities than those as observed for smaller firms.  This paper concludes with a brief discussion of the implications of the survey findings for outsourcing and strategic management of the outsourcing function.