The internationalization process and behavior of small business firms from developing countries was examined. A sample of small business firms from six different industries in India was taken to examine motivation and choice of markets, approaches used as part of export growth strategies, and attitudes towards international marketing activities. Results indicate that many of the explanations provided by the “stage theory” models for larger multinational enterprises do not fit the behavior of small exporting firms. There is also a bias towards focusing international marketing efforts toward developed countries rather than “psychically close” countries, contrary to the contentions of stage theorists. Findings also suggest that many small exporting firms tend to rely heavily on native ethnic contacts in the developed markets and remain production oriented as opposed to marketing oriented in their approach to international marketing. Policy recommendations and implications for firms from developed countries such as the United States are also discussed.
Pradeep Tyagi (Sat,) studied this question.