Internationalization Strategy of Small Medium Size Enterprises from Developing Countries : A Case Study of XINJIAHUA Export Company

Abstract: The internationalization of SMEs can be expected to gain further momentum because the world economy is becoming increasingly integrated with continuing declines in government-imposed barriers and continuing advances in technology. Meanwhile, more and more SMEs from developing countries start to increase their overseas business. The purpose of this thesis is to study or investigate how SMEs develop and implement their internationalization strategies. To be able to illuminate this question in more detail, essential factors will be looked upon in this paper. We choose the export business as a main entry mode due to SMEs general lack of resources. Generic strategies and marketing mix analysis will also be discussed in the paper in order to obtain essential factors which influence performance of SMEs from developing countries which internationalize their business.Only a qualitative study was carried out to help determine the purpose of the paper, where data was collected through a real case study which was an Exporting Company from a developing country. The primary data was collected through interviews via email with the company founder, accounting manager, manufacturing manager and sales managers, complemented with secondary data collected from internet sources.The empirical findings and analysis has brought to light some interesting conclusions. Export can be a smart choice for SMEs, because they lack of resources at the initial period. Whether the choice is direct export or indirect export, the driving force of SMEs from developing countries are their natural dispositions. Mixed generic strategy can help SMEs conquer disadvantages. While marketing mix theory can also help SMEs aim at niche markets more clearly.Thus, exporting as the most suitable entry mode for SMEs, while mixed generic strategies and marketing mix theory also should be taken into consideration. Therefore the success of internationalization process will be increased for SMEs from developing countries.