Leading Factors in the Internationalization Process: An Empirical Analysis on the Pumpand Motor Manufacturers inCoimbatore District

Abstract

Export has a vital role to play in the economic development of a nation. It is an important key factor in deciding the sustained rate of economic growth of the country and considered very essential for any nation, as it provides ample employment opportunities and promotes industrialization. Nowadays, technological advancements, declining trade barriers etc are driving the world economy to become more and more integrated and
this rapid globalization is enabling SMEs to become international in a quicker yet effective manner. This study presents the Internationalization strategies for the case of small scale and Medium sized enterprises. The purpose of this paper is to understand the importance of Internationalization of SMEs in the light of Uppsala model of Internationalization, Network and International Entrepreneurship theories by taking a sample of 143 manufacturing firms. The variables on each theory is identified and analyzed to find out, how far these factors are influencing in the firm’s internationalization process. The basic issue of our research was to describe the nternationalization process of SMEs with a focus on the roles of the three theories.