Key decisions and changes in internationalization strategies: The case of smaller firms

Abstract

The purpose of this paper is to examine the internationalization of Small and Medium-\nSized Enterprises (SMEs) in the mechanical manufacturing sector. The focus of the\npaper is on the factors affecting both the strategic choices and the changes that occurred\nduring the internationalization process, after the first foreign market entry. To\naccomplish this goal, quantitative research has been performed through a survey on\nentrepreneurs and managers of 60 Italian SMEs. The questionnaires collected were\nused to perform a cluster analysis in order to identify various groups of companies\nexhibiting similar behaviours. This study provided a valuable contribution to the\nknowledge of SMEs’ internationalization in general and of the mechanical sector in\nparticular, showing the importance of analysing when a firm decides to change its\nmarkets or its entry mode, along a continuum of reactive versus proactive changes.