The Speed and the Degree of SME Internationalisation in Bangalore: An Analysis of its Determining Factors

Abstract

Abstract This article presents an empirical inquiry on the drivers that have influenced the speed and the degree of SME internationalisation in Bangalore. The article is based on primary data gathered from 70 internationalised small and medium enterprises (SMEs) belonging to the machinery industry in Bangalore urban district. Our analysis ascertained that the size of the firm and CEOs’ foreign language proficiency are the significant determinants of the speed of SME internationalisation. CEOs’ international experience, motivation, international network and speed of entry positively influenced the degree of SME internationalisation. Thus, the present study lays emphasis on ‘entrepreneurial competence’ and ‘strategic entry’ that determine the speed and degree of internationalisation of SMEs, for appropriate policy attention for promoting SME internationalisation.