SMEs’ Foreign Operation Mode Package Development

Abstract

This paper aims to provide a theoretical explanation to the observed phenomenon that SMEs develop a foreign operation mode (FOM) package. The findings demonstrate that SMEs’ FOM package was developed based on an opportunity development logic. Specifically, SMEs develop multiple opportunities sequentially and simultaneously which end up as a FOM package. The authors identify the antecedents - existing knowledge and networks, and additional influential factors of affordable loss and the level of commitment to develop a theoretical explanation. Practitioners can apply opportunity development logic to evaluate a SMEs FOM decision.