The internationalization process of small and medium-sized enterprises: An evaluation of stage theory

The aim of this study is to provide better insight into the internationalization process of small and medium-sized enterprises (SMEs). Using a five-year panel dataset and a relatively new technique, DEL analysis, the predictive validity of the export stage concept of Cavusgil's innovation-related internationalization model (the I-model) is examined This stage theory conceptualizes the internationalization process using five stages: a domestic marketing stage, a pre-export stage, an experimental involvement stage, an active involvement stage, and a committed involvement stage. In addition, the time period to be considered in moving from one stage to another is explicitly tested. The results suggest within certain limits that Cavusgil's stage theory holds for European manufacturing SMEs. According to the considered time frame, the results are slightly in favor of a two year-period.