Does the Competitive Strategy Being Emphasized by the SME Influence Internationalization?
The competitive strategy of a firm essentially involves matching the internal resources and skills or an organization to the opportunities and risks that exist in the external environment (Hofer & Schendel, 1978). Given that the deployment of the resources of the firm reflects its strategy, the competitive strategy being emphasized by the SME should influence whether or not it chooses to pursue opportunities in the international markets. While numerous typologies have been offered to characterize a firms competitive strategy, the one that has drawn the attention of most strategy and entrepreneurship researchers is the one by Porter (1980). Although Porters typology incorporates only a few critical dimensions, it has strong theoretical underpinnings. He suggested three basic business strategy choices based on the source of competitive advantage and the scope of the market being targeted: cost advantage, differentiation, and focus. Miller (1986) further divided differentiation into innov
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