INTERNATIONALIZATION PROCESS OF SMALL AND MEDIUM ENTERPRISES RELATED TO INFORMATION TECHNOLOGY SERVICES: A STUDY FROM PAKISTAN
DOI:
https://doi.org/10.37435/nbr.v7i2.130Keywords:
Internationalization Process, Small and Medium Enterprises, Foreign Markets, Information Technology Services, PakistanAbstract
NBR
NUST Business Review
ID: NBR25091402
Vol. 07 (02), 12, 2025
pp.
DOI:
This work is licensed under a Creative Commons Attribution 4.0 International License.
Purpose: This paper aims to examine the internationalization process of Small and Medium Enterprises (SMEs) related to IT services. It explores their primary motivations and internal and external factors that prompted them to enter the international market, their main driving strategies and planning when entering foreign markets, the barriers and challenges they faced, and the success factors involved in their internationalization.
Design and Methodology: This paper uses a qualitative multiple-case study design. Five IT services related SMEs, both domestic and foreign, working in Pakistan are purposively selected based on prior international experience, firm size, and service orientation. The data is collected through semi-structured interviews with management representatives in a focus group discussion. Thematic analysis is conducted to identify cross-case patterns.
Findings: The findings show that the primary motives of IT services related SMEs for internationalization are globalization and expansion. Key factors for the success of these enterprises include a strong grasp of ideas, market research, commitment, well-structured strategies, and an understanding of the policy framework of the country. These enterprises also face new challenges, including political instability, government rules and regulations, legal issues, and foreign exchange risk.
Originality: The results show that the internationalization of SME, through exports or foreign partnerships, has far-reaching policy implications for Pakistan’s IT sector. Effective policy measures can help SMEs to overcome barriers and seize opportunities related to internationalization.
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