The Internet and the internationalisation of small knowledge-intensive firms: Promises, problems and prospects

Prashantham, S. and Young, S. (2004) The Internet and the internationalisation of small knowledge-intensive firms: Promises, problems and prospects. International Journal of Entrepreneurship and Small Business, 1(1/2), pp. 153-175. (doi: 10.1504/IJESB.2004.005382)

Abstract

Based on case studies, this paper presents some exploratory insights, supplemented by a preliminary quantitative study from a developing economy context (i.e., the software industry in Bangalore), concerning the role of the internet in the internationalisation of small knowledge-intensive firms. Three main points are made in this paper. First, the internet holds great promise in facilitating the internationalisation of small firms – especially those in peripheral regions like developing economies; the four Bangalore-based small case-firms shared this view. Second, internet technology notwithstanding, traditional aspects of business such as the importance of face-to-face interaction and the building of trust remain vital; here a potential facilitator for small firms to overcome this barrier comes in the form of internet-supported intermediaries. Third, ultimately the prospect that the internet holds for internationalising resource-poor firms is that of international growth; a preliminary study of 30 Bangalore-based small software firms suggests that this notion holds credence and is worthy of further study, on a larger scale. These findings have implications for future research, practice and policy making in terms of taking a holistic view of the use of internet technology and the leveraging of social capital.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Prashantham, Dr Shameen and Young, Professor Stephen
• Authors: Prashantham, S., and Young, S.
• Subjects: H Social Sciences > HD Industries. Land use. Labor
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: International Journal of Entrepreneurship and Small Business
• Publisher: Inderscience Publishers
• ISSN: 1476-1297
• ISSN (Online): 1741-8054