Internationalization behavior of small and medium sized South African enterprises

Abstract

Since Johanson and Vahlnes' pioneering internationalization study (1977), much research has gone on to assess what differentiates exporters from nonexporters and why some firms aggressively export while others are less involved. To understand this phenomenon, a plethora of studies has been conducted, mainly in developed countries (Canada, United States, United Kingdom, Sweden, Italy, Norway, Australia, and New Zealand to name but a few -- see Chetty and Hamilton (1991) and Eshghi (1992) for a comprehensive review of the literature). As a result, much is known about the export behaviors of firms in these developed countries. However, only a handful of studies have been conducted in lesser developed countries such as E1 Salvador, Brazil, and Korea (Eshghi 1992).

South Africa is an interesting country to study because it is at the same time a developing and a developed country. Yet little research has focused on South African business behavior. There has been only one study of export behavior which included South African firms (Dichtl, Koeglmayr, and Mueller 1990). Since current theories of internationalization have been tested primarily in developed countries, we cannot be certain whether these theories apply within the South African context