Internationalization of Service SMEs: Perspectives from Canadian SMEs Internationalizing in Asia

This study investigates how service small and medium-sized enterprises (SMEs) overcome challenges of internationalizing when expanding to markets that are both institutionally and geographically distant. The data is qualitative and collected through a forum on the internationalization of service SMEs. We examine high tech service SMEs from Alberta, Canada where most internationalization has occurred within North American Free Trade Agreement (NAFTA). We develop an understanding of how these firms need to consider the unique environments in institutionally distant economies to successfully enter Asian markets. Using industry and country experts, we develop a 4P (Potential, Proposition, Presence and Policy) framework for service SME strategies to expand to China, India and Korea. The article contributes to the sparse literature on the internationalization of service SMEs into institutionally distant markets.