The role knowledge in managing uncertainty in the decision to internationalize by small and medium sized SMEs

Purpose: This study looks at how knowledge moderates the level of perceptions of uncertainty in the decision to internationalize by SME companies. Specifically, this study examines how knowledge is a critical factor in reducing uncertainty for SME companies selection of countries and mode of entry into these countries as internationalization strategies. Design/methodology/approach: The methodology of this study is to identify and analyze how knowledge serves as a valuable input to reduce uncertainty in the decision to internationalize from the standpoint of the "Model of the influence of knowledge on the internationalization process" (Cassillas et. al, 2009), which is a subset of the broader 'Speed of Internationalization Model' (Oviatt and McDougall, 2005b). A mix of qualitative and quantitative research such as case studies and survey interviews with a sample of French small and medium sized enterprises will be used to illuminate the factors of whether and how to internationalize a company's business. Originality/value: On a theoretical level, this study builds on and extends the existing analyses (Oviatt and McDougall, 2005b; Cassilas et. al., 2009; Butler, 2010; Liesch et. al., 2011) of the role of knowledge in reducing uncertainty in the decision to internationalize by small and medium sized SMEs. In particular, this study highlights the impact of knowledge on uncertainty by examining how different types of knowledge reduce the risk perception of the final decision to initiate business with a foreign country. Practical Implications: The managerial implications of this study is that it advances the understanding of how knowledge can be used to reduce the risk perception and uncertainty in the decision to enter foreign markets. More specifically, this study suggests ways that knowledge can be used to mitigate the risk perception and related uncertainties, therefore raising the confidence of entrepreneurs to internationalize.