SMEs’ Internationalization: from the focus on psychic distance to firms’ network of relationships. A case study

This study starting from reviewing the traditional “incremental internationalization model”, presents an evaluation of the “network approach” to internationalization. While the former describes firms commitment to the international market as a process of incremental steps, the latter maintains that new opportunities on foreign markets are found through the development of network relationships. In particular, the combination of the network view with International Entrepreneurship insights lead to a more in-depth understanding of the internationalization process. This perspective is supported by the case study of an Italian SME and empirical evidence leads to the following two statements on SMEs internationalization: (1) the process is not guided by countries’ psychic distance. The main driving force is represented by the network of relationships in which the firm is involved; (2) entrepreneurs’ characteristics and experience play a fundamental role in the international network development because they are the “lens” through which interpret and shape relationships.