INTERNATIONALIZATION PROCESS OF SMALL MEDIUM ENTERPRISE (SME): A REVIEW PAPER

Abstract

Small Medium Enterprises (SMEs) has become an active role in development of the economic for a country. It’s not only give an impact on the local market, but also in the international market. The involvement of SME in international market has brought the big contribution in economics development, employment, and a nation’s total export. Despite these contributions, SMEs inevitably are lack of resources, capability and market power as compared to the large firm. In Malaysia, the total establishment of SMEs is higher, the involvement of these SME into the international market is still considering low. The aim for this conceptual paper is to examine previous scholar research papers that related to the internationalization process of the SMEs that will enhance the conceptual understanding on the study. The internationalization is a process of increasing involvement in international operation and the process of adapting firm’s operations that consist of strategy, structure, and resources toward the international environment. This paper reviews the study and research that have been done by scholars on the internationalization process for SMEs in different economic level. Throughout the analysis, study find similar and different factors that play role on the internationalization process, the classification of theory and method that have been used in the study from the finding of the previous studies. This review will give a better understanding in the field of internationalization process for the SMEs.