Internationalization Process of Korean SMEs Through Network Relationships

Abstract

This paper examines the influence of network relationships on the internationalization process of Korean SME, using a single case study approach on the automotive component industry. The study applied a business network internationalization process model which integrates the traditional models of incremental internationalization with the network perspective. The findings show that the internationalization process of Korean small automotive component firm passes through three phases based on the degree of insidership. The relationship with the major partner impacts firms network extension process, network position, and process of overcoming liability of outsidership. The paper provides an empirical study on the case of partnership between large and small firms through a lens of stage and network perspectives.