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The aim of this study is to provide better insight into the internationalization process of small and medium-sized enterprises (SMEs). Using a five year panel dataset and a relatively new technique, DEL analysis, the predictive validity of the export stage concept of Cavusgil's innovation-related internationalization model (the 1 model) is examined. This stage theory conceptualizes the Internationalization process using five stages: a domestic marketing stage, a pre-export
stage, an experimental involvement stage, an active involvement stage, and a committed involvement stage. In addition, the time period to be considered in moving from one stage to another is explicitly tested. The results suggest within certain limits that Cavusgil's stage theory holds for European manufacturing SMEs.According to the consid erred time frame, the results are slightly in favor of a two-year period.
Since 1992, the European Union (EU) has become a reality for European firms. Within this free trade zone, even more steps are being taken to unite the countries, both economically and politically. This transition changes the national and international business environment. For small and medium-sized firms(SMEs)and for their competitors-it has become easier to broaden the firm's activities internationally. Besides the establishment of the EU, the democratization of Eastern Europe also brings new opportunities as well as threats, because some of these countries are likely to enter the Union. An internal market of nearly 500 million consumers, reaching from the Atlantic Ocean to the Russian border and from the North Pole to the Black Sea, will emerge. For large and small firms, these changes will result in a need to cope with international competition as well as with increased opportunities to go abroad.
Several theories and concepts have been suggested to capture the process of internationalization.Among these, the socalled stage models receive much attention. These theories assume that the process of internationalization should follow a prescribed path to be successful. Knowledge about the validity of this assumption is of great interest to firms facing important strategic decisions. However, research to date has some important limitations. Most of the research has concentrated on large firms, using case studies or cross-sectional studies and often concentrating on a specific country of origin (Zwart and Gankema 1990).The actual progression through the stages has been underexposed, and little attention...