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Abstract
Small and medium sized enterprises (SMEs) are vital for a country's
economy considering export growth, creation of job opportunities, and
general economic development (Mtigwe, 2005). Thus, acknowledging the
societal importance of SMEs in general and internationalization of SMEs in
particular, it is puzzling how little research attention this area attracts. One
reason why few internationalization studies focus on SMEs is that
international involvement is a resource-demanding activity, and most SMEs
operate under tight resource constraints resulting in low freedom of action.
Among SMEs that are involved in international business, export is often the
preferred entry mode. In this research, export is included as the entry
strategy component of the international establishment model called the
modified PSE model. Since the original PSE model was developed for large
corporations entering emerging markets, it has been altered to fit SMEs
entering foreign markets through export. The modified PSE model is based
on four components: perception of internationalization barriers; strategy
competence; entry strategy; and performance. All empirical material for this
study will come from small and medium sized furniture producers in
Sweden. Along with a theoretical discussion, this conference paper includes
a presentation of the research model, sample frame, and research design.