Knowledge – a critical factor in the internationalisation of SMEs: the case of Portuguese SMEs in China Online publication date: Fri, 07-Dec-2007
by Maria Fernanda Pargana Ilheu
International Journal of Chinese Culture and Management (IJCCM), Vol. 1, No. 1, 2007
Abstract: Normally, SMEs have internal shortages of information, capital and management experience, and, in foreign markets, limitations related to their difficulty of adjustment to different environmental conditions; the bigger the difference, in cultural, linguistic and social terms, of the country where the company plans to enter, the bigger the difficulties faced by companies' management, owing to scarce resources. These limitations justify SMEs' having more difficulty in bearing the cost of internationalisation than large companies. China is a very attractive market, with a huge potential economic growth in the liberalisation phase, but very distant from Portugal in geographic and cultural terms. Information and knowledge are critical factors for the expansion in China, for diminishing that distance and for helping companies in adopting market-oriented strategies and getting a competitive advantage positioning.
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