Internationalization of small and medium sized enterprises: Toward a revised internationalization process model

Since the global integration of the economic environment, the speed of internationalization has been accelerating and has no sign of fading. Traditional internationalization theories have difficulties in explaining current development of Small and Medium-sized Enterprises' internationalization behaviour, e.g. the international new ventures. The objective of the thesis is to propose a revised internationalization process model which grasps the spirit of knowledge diffusion and network relationships. In the study traditional internationalization theories and their latest development are carefully studied through a literature review. Logical comparisons are made to capture various theories' strengths and weaknesses when applying to current research studies of Small and Medium-sized Enterprises' internationalization behaviour. At the same time the concept of knowledge diffusion is integrated into the network learning theory to create an interacting mechanism. The result of this thesis is integration of the network knowledge building and exchange mechanism with the existing internationalization process model. The revised model gives a better understanding of how knowledge flows within a network during its diffusion cycle and how the depth of organizational learning affects a firm's network position