The role of communication importance in business internationalization: SMEs perspective

Abstract

The principal objective of this paper is to present existing approaches towards the latest communication tools, assess these approaches and their impact to international business management from a SMEs perspective. This paper also examines the role of information and communication technology (ICT) in internationalization processes. This role cannot be ignored with the increase in the use of the internet, social media and mobile networks which provide with opportunities to carry out market intelligence, develop an appropriate market entry strategy, promote products and services and build a better network. In addressing this issue, the paper relies on the analyses with focus on Lithuanian SMEs communication to social media, internet and on-line auctions and their application in developing business relations. The empirical base of the paper is limited to Lithuanian SMEs and to those who focus on Nordic market in particular. However, a number of generalizable parallels are possible with SMEs from other EU countries. The paper identifies the current situation and highlights a potential gap between the perception of communication importance and the management approach and application in the daily SMEs management. The latest communication tools challenge SMEs management and give stimuli to set priorities and focus on key areas (balanced approach on development and promotion). Despite a market and technology push to follow and continuously apply existing communication tools, SMEs are often reluctant to acknowledge the importance of communication tools to international business success. SMEs use these tools (social media, Internet and on-line communication) to less extent as traditional off-line tools (participation at international events such as trade fairs, B2B missions, forums). The article relates to the key attributes of communication practices and concludes on how SME could manage