Internationalization Behavior of Paraguayan Small and Medium-Sized Enterprises

Purpose: This study aims to examine the manner in which small and medium-sized enterprises (SME) in Paraguay choose to internationalize, by dissecting their internationalization process and comparing the process to the framework described in the Uppsala internationalization process model (UIPM). The research follows a comparative multiple case-study approach, analyzing the internationalization of 62 Paraguayan companies. The chronology and the reasoning behind internationalization decisions are researched and compared to the UIPM to determine whether Paraguayan SMEs internationalize according to the UIPM. Design/methodology/approach: The research follows a multiple case-study design, based on interviews with 62 entrepreneurs and senior managers, and data collected from their Paraguayan SMEs about their internationalization behavior using a purposive sampling method. Data analysis happened to dissect the similarities and differences so as to create patterns and themes based on the UIPM.Findings: The suggested results can be summed up in three themes. (1) Paraguayan SMEs are using market research based, active market entry strategies. (2) Paraguayan SMEs develop new foreign markets according to the establishment chain of the Uppsala internationalization process model. (3) Paraguayan SMEs prefer export and hierarchical market entry forms. The generalizability of the results is limited to the SMEs due to the research methodology.Research/practical implications: The suggested results of this multiple case study have implications for theory and practice. Paraguayan SMEs could use the findings to optimize their own internationalization strategies, Paraguayan politicians and export promotion agencies to design more efficient trade policies, and researchers could test the findings with quantitative methods or an analysis of unsuccessful market entries.Originality/value: This paper adds new evidence about the internationalization behavior of SMEs in emerging economies and the UIPM