‘We need to play safe’: SME internationalization in a munificent environment

Abstract

In response to the calls for better understanding of the impact of the non-Western business environment on business, this article explains how small and medium-sized enterprises (SMEs) respond to resource-abundant rather than the more usually studied resource-constrained conditions. The evidence from six SMEs in Qatar exposes the role of a munificent environment in enabling SMEs’ early and proactive internationalization. We also explain that SMEs in this munificent national context follow ‘constrained internationalization’ trajectories because of concerns over risk and the potential of jeopardising and losing the benefits drawn from the home country incentives. The work contributes to the current understanding of the role of context in SME internationalization and outlines implications for management practice.