A Proposed Model for the External Factors and the Decision Maker Characteristics that Influence the Internationalization Decision and its Effect on the Small and Medium Enterprises Performance An Empirical Study on the Information Technology Sector

Abstract

An organization is an integral part of its surrounding environment. Organizations are affected with new changes in the surrounding environment as technological evolution represented in the internet, its related technologies, easiness of transportation and logistics breakthrough, tremendous changes of taste and mobility of resources all of these changes led to the concept of globalization. A global firm is one that by operating in more than one country gains marketing, production, R & D and financial advantage that is not available to purely domestic competitors. Major decisions in international marketing range from detecting the global marketing environment, deciding whether to go international, deciding which market to enter and how to enter the market, deciding on the global marketing program and finally deciding on the global marketing organization. (Kotler 2007). As global competition increases as there is an increased attention to innovation. This places a greater compulsion upon large businesses to develop stronger linkages with innovative SMEs, small and medium enterprises. Conventional companies with traditional local focus (often family owned) and more innovative companies (often professional service groups) are the main two forms of ownership in small and medium enterprises.