The small and medium sized exporters squeeze: empirical evidence and model reflections

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Abstract
Government programmes to promote SME manufacturer' export expansion are flourishing. Yet, the many facets of SMEs' process of internationalization are not explained satisfactory by normative theories of the internationalization of firms. SME exporters are often in a squeezed situation hardly reflected by normative theories on the internationalization of firms. Major problems and paradoxes in the interface between theory and reality are briefly examined in this article. Focus is given to three major issues seldom touched upon, namely the reduction of time-lag from the startup of the firm to the required start of export activity; the typical lack of internal resources and management capacity to commit in advance to export expansion and the need to commit external resources and competence in support of the SME export expansion. Finally, supply-side conditions are touched upon, emphasizing the role of local and regional institutional richness and specialization directed towards SME exporters.

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