Small and Medium-sized Enterprises' Internationalization and the Influence of Importing on Exporting

Abstract

Relative to the volume of research into internationalization, inward operations have received much less attention than outward operations. This study addresses this imbalance by focusing on the degree to which firms import, how imports started relative to exports, and what import-related factors affect exporting. Findings from a survey of Finnish SMEs suggest that responding firms rate management interest, limited domestic market, and inquiries from buyers as the most significant incentives to start exporting. Import-experienced exporters assign higher ratings on nearly all export incentives, while pure-exporters consider themselves more dependent on governmental support. Importing per se has a comparatively modest, yet statistically significant, influence on exporting.