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t, distribution agents, subsidiary E 40 Consolidation of new market position. International activity is conducted separately from other markets. Issues between different markets and the main office. Western Europe, Eastern Europe, Asia Export, subsidiary
A 60 Actively seeking new opportunities. International business issues begin to be integrated into thinking and action within the organisation. North America, Western Europe, Middle East, Australasia, Asia Subsidiary, distribution agents, export Anderson, Boocock and Graham
Journal of Small Business and Enterprise Development 219 rated issues arising from the two previous stages, as well as factors identified within the broader literature on internationalisation. The questionnaire asked respondents to consider factors influencing decisions to become involved with international activity, the implementation of those decisions and the outcome of the process.
The questionnaire was mailed to a random sample of 3,000 businesses in three geographical areas of the UK: North London, East Midlands and Manchester. The database comprised firms of all sizes with the proviso that they were involved in international activity. Responses were received from 252 companies of which 187 (75 per cent) employed fewer than 100 staff; 64 per cent of these organisations were principally involved in manufacturing industrial and consumer products, the remaining 36 per cent being primarily service- oriented organisations. This paper focuses on the responses of those companies employing fewer than 100 staff. Of this group 6 per cent, although sourced from a database targeted at known exporters, reported that they had not commenced international activities. Of those who were operating internationally, only 14 per cent had commenced their international activity in the previous five years, the remaining 86 per cent reported experience in this field for six or more years.
LEARNING TO INTERNATIONALISE: THE CHALLENGES The decision-making process in SMEs has been characterised as one where emergent developments and chance opportunities may be more significant than formally rational strategic thinking (see, for example, Newbould et al., 1978; Olson and Bokor, 1995). Analysis of the postal survey data is not conclusive on this point. While many of the companies claimed to be motivated by ‘potential’ in overseas markets, other features, such as an appraisal of the domestic competitive situation, cultural features and geographical proximity, were less significant. When asked to indicate factors that might have become more important over time, respondents highlighted factors associated with formal planning, such as the domestic market size, organisational capability and issues of spreading risk (see Tables 2 and 3). In both cases, personal motives, ad hoc orders or approaches from agents were recalled as less significant. The postal survey also sought to identify parti- help/inducement 84.5 6.5 1.8 7.1
Internationalising SMEs 220 Journal of Small Business and Enterprise Development cular problems that had been experienced during the early phase of internationalisation. Again the data are inconclusive, particularly as some respondents would not have recent memory of the early period of internationalisation. Although payment issues and the management of foreign agents were cited by more than 40 per cent of respondents, the higher rates of response indicate issues that were not perceived as a problem, particula