Network Relationships and the Internationalisation Process of Small Software Firms

This paper examines the influence of network relationships on the internationalisation process of small firms, using multi-site case research on the software industry. The study empirically integrates the traditional models of incremental internationalisation with the network perspective. The findings show that the internationalisation process of small software firms reflects an accelerated version of the stage model perspective, and is driven, facilitated, and inhibited by a set of formal and informal network relationships. These relationships impact foreign market selection and mode of entry, as well as product development and market diversification activities. The paper offers a conceptual framework of the small firm internationalisation process which integrates the “stage” and “network” perspectives, and concludes with a discussion of research and managerial implications.