INTERNATIONALIZATION FOR SMES

Internationalization for SMES



Internationalization for SMES

Introduction

In a globalizing economy, regions and firms are competing on an international level. Internationalization contributes to the economic development of nations, in developing national industries, improving productivity and creating employment. Small firms play an important role in this process. Export-oriented entrepreneurship contributes more strongly to macro-economic growth than entrepreneurial activity in general.

Nowadays, internationalization affects all firms large and small. Increasingly, small and medium sized enterprises (SMEs) are confronted with international competition and are forced to play a role in international markets. This internationalization can take many forms, such as import, export, foreign direct investment (FDI) and international collaboration. For many firms, access to know-how or technology is important motives for going abroad. Several international studies have indicated that internationalization is often accompanied by improved performance and competitiveness of SMEs. As a large number of SMEs in Flanders are not internationally active, Flanders has a large potential for growth through internationalization of its SMEs. Emerging markets like the new EU member states and China provide new opportunities, as do sectors such as creative and knowledge intensive industries.

The changing business environment creates new opportunities and incentives for SMEs to internationalize. On the one hand, trade liberalization opens up new opportunities. On the other hand, it also confronts domestic firms with the threat of international competition. SMEs are increasingly facing foreign competition and need to respond to these changes of their strategic environment. This not only implies adjusting their domestic strategy, but increasingly forces firms to go abroad. Exporting can lead to increasing productivity, through economies of scale. FDI may provide a firm with new know-how and technologies, which can be combined to develop new competitive strengths. Still other firms may seek access to cheap inputs, such as raw materials or labor. As large firms increasingly outsource parts of their supply chain, opportunities for SMEs arise to internationalize through co-operation with large firms. Regardless of the motives, internationalization provides firms with opportunities to improve productivity and increase their chances of survival.

Run The Red

Run The Red is a leading mobile solutions provider. Headquartered in New Zealand , and founded in 1999, the company's mission is to create innovative and compelling mobile applications for a broad range of clients operating in a number of sectors.

The company's unique asset is its depth of understanding about what drives the mobile consumer's customer experience. Accumulated over five years through the analysis of several million messages for high profile clients, Run The Red has built up formidable specialist knowledge about SMS in particular, as well as considerable expertise in all forms of mobile data, from MMS to 3G and WAP to palmtops.

Knowing, and caring, about the way customers interact with their mobile handset means Run The Red can ensure its clients, from FMCG brands to banks, entertainment brands to marketing and communication agencies, will receive a return on their mobile investment in record time. In addition to strong relationships with Australasian mobile network operators, the ...