The purpose of this paper is to propose a new framework: SCOPE – to postulate strategies for Small and Medium Enterprises (SMEs) to export, compete, and succeed in the global market. SCOPE stands for Strategies to analyze the Challenges, Opportunities, and Problems to succeed in Exporting. A multiple case study method was employed based on semi-structured interviews with senior managers of different SMEs from three European countries. It was found that SMEs face internal and external challenges. This is complemented by a Pentagon model. This framework could be employed as a theoretical lens to critically examine the antecedents and outcome of SME internationalization.

Introduction

Globalization has resulted in major challenges for small firms across countries and markets (Buckley & Ghauri, 2004; Paul, 2015; Linan et al, 2019; Paul & Rosado-Serrano, 2019). In this era of internationalization, small and medium-sized enterprises (“SMEs”) are critical for all countries (Peters & Waterman, 1982; Amini, 2004; Radam et al., 2008; Pisani, Caldort & Hopma, 2017: Gancarczyk & Gancarczyk, 2018). Current changes in the global economy contribute to challenges and opportunities for SMEs to face (Dominguez & Mayrhofer, 2017). It is widely acknowledged that small firms substantially contribute to an economy (McPherson & Holt, 2007). Similarly, they contribute significantly to employment generation (Pavitt et al., 1987). By contrast, institutions play an important role in supporting SMEs (Hitt, Li & Xu, 2016). Nevertheless, SMEs face competition from large local and foreign firms (Rialp & Rialp, 2001). Typical strengths of SMEs include entrepreneurial dynamism, flexibility, efficiency, and quick decision-making while large firms’ have economies of scale, scope, marketing skills, and financial and technological resources. Large firms equipped with more resources have a competitive edge in international markets as they respond faster to trade barriers than SMEs (Beamish, 1990; Wolff & Pett, 2000; Paul & Gupta, 2014). Researchers hold differing views concerning the strengths and weaknesses of SMEs involved in international business (Soriano & Dobon, 2009; Paul, Parthasarathy & Gupta, 2017).