The internal change process in SMEs during internationalization : Looking inside the black box of the firm

Abstract: Small to medium sized firms in the fashion industry are internationalizing early, which forces them to go through internal changes as they adapt to international operations and develop into larger organizations. This place demands on how such growth is managed and how resources are used within SMEs. Based on the scarce research on SMEs’ internal change process during internationalization and the lack of empirical evidence, the purpose of the study is to investigate the internal change process that takes place in SMEs when they expand and grow through internationalization. By conducting multiple case studies across three Swedish fashion SMEs and collecting data through semi-structured interviews, the purpose is to build a conceptual model explaining the internal change process. Findings revealed that internal change is a constant process of acquiring and combining resources in order to make necessary internal changes that support continued internationalization. The study also reveals the characteristics of SMEs as being inexperienced and having limited resources, and also speed of internationalization, highly affect how the internal change process develops.