Linking market knowledge competence to the speed and success of export

Internationalisation of Small- and Medium-Size Enterprises (SMEs) has been a subject of academic research for several decades. The literature points out that SMEs are at a disadvantage due to increasing competition from Multinational Enterprises (MNEs), a lack of knowledge, resources and competencies. However, to understand what competence enables SMEs to export despite these constraints, this study presents an empirical evidence about what knowledge and firm capability imparts such competence and whether this competence is related to the speed and success of export expansion. The study employed a sequential mixed methodology research design. First, qualitative data was collected from two SMEs to identify the knowledge relevant for export expansion. Second, data was collected from 100 software vendor firms from Northern Europe, Europe, USA and Asia Pacific. In the empirical results experiential knowledge and knowledge of customer needs influence the speed and success of export expansion. The alliance learning capability appears the most significant of all export expansion capabilities. The practical implications relate to managers planning to initiate and expand exports.