The Strategy Of SMEs Internationalization Based On The Internet

Traditional theories regard internationalization as an arena oflarge resource-rich firms, however, SMEs' increasingly active role inthe international field in recent years has challenged this traditionalmind set. With the tendency of a globalized market,a growing number ofSMEs has begun to operate abroad.After more than twenty year' s economic reforms, some enterprisesin China have aspired to international business and already possessedrelated qualifications for "going abroad".Moreover, with China' saccession to WTO, our country has already reached a new era when it shouldshift its policy focus from "attracting FDI" to "both attracting FDIand going abroad", so it possible for enterprises in China, especiallythose SMEs, which constitute the majority of Chinese companies, tooperate successfully in foreign countries? How could we promote theprocess of their internationalization?The value of World Wide Web comes from two main features of Internet:one is the open standard, and the other is two-way interaction. Base onthe prospective business opportunities of the market, business use andapplication of the Web has drawn wide attention from the commercialenterprises. Under such circumstances, this dissertation focuses on how to use the Internet to promote the internationalization of SMEs.The dissertation consists of five chapters. The first chapter beginswith an introduction of the research background and its expected value,then expounds the theoretical logic and methodology of dissertation.After a review of traditional theories of internationalization, chaptertwo analyzes the limitations of traditional theories in explaining SMEs'internationalization and the recent development of theories ofinternationalization and generalized uniform theory behind the businessuse of Internet and Web application. Chapter three emphasis the functionof the Internet. The Internet will reduce the competitive advantages ofscale economies, making it easier for SMEs to compete fair on a worldwide basis. Overall, the low cost communications provide by the internetpermits with limited capital to become global markets at any stage intheir development. Chapter four finally discusses the problems SMEs inChina have encountered in the use of internet in the process ofinternationalization, which derive from both the external environmentand the SMEs themselves. According to the current problems, the last parttries to put forward some suggestions for solving these problems andproposes Electronic Commerce strategies for SMEs in China.