| Whether small business firms are succeeding in penetrating international markets is a concern of those interested in the embrace of the global economy domestically. The extent to which small businesses in the service sector are entering the global economy and what links them to the world economy have not been sufficiently explored. This dissertation focuses on this subject. It uses small business service companies in the Washington, D.C. metropolitan area to provide a case study to examine the hypothesis that three broadly-defined factors account for the success of small business service companies in penetrating international markets. These factors are: (1) the company's capacity and organizational structure (2) the local economic structure and home market conditions and (3) the company's networks and development strategies.This dissertation identifies the patterns and characteristics of small business service companies that have and have not penetrated the international market and analyzes the factors influencing their success. The study supports the hypothesis, showing that the company's financial and personnel capacity, specific area of expertise, as well as the knowledge of and skill at establishing relevant personal relationships, were essential in determining the success of small business services in international markets. The research findings also demonstrate that the nature of the local economy and its level of internationalization affect small business service companies entry into the international economy. An environment that makes available business information, resources and opportunities enable small business service firms to establish business connections that enhance their likelihood for entering international markets. |
