Title: Internalisation or externalisation: the option for small and medium-sized technology-based enterprises in overseas markets
Authors: Lee Li, Gongming Qian
Addresses: Department of Administrative Studies, Atkinson College, York University, 4700 Keele Street, Toronto M3J 1P3, Canada. Department of Management, The Chinese University of Hong Kong, Shatin, Hong Kong
Abstract: Small and medium-sized firms interested in entering international markets face a difficult decision with regard to the choice of governance modes. The options available to a firm include internalisation and externalisation. Existing theories contradict each other about the strategic benefits of these options. This study compares these theories in the context of small and medium-sized technology-based enterprises. Findings from this study suggest that the merits of internalisation and externalisation vary with market contexts and the resources under the firm|s control. Under certain conditions, one theory can be more powerful than the other.
Keywords: internalisation; externalisation; small and medium-sized technology-based enterprises; SMEs.
International Journal of Management and Enterprise Development, 2003 Vol.1 No.1, pp.55 - 70
Published online: 12 Sep 2003 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article