Production-Oriented Internationalization: Strategic implications for traditional SMEs.

In the last 15 years, several Traditional SMEs internationalised their production in low-cost countries where they did not have previous selling presence. This paper aims at drawing research attention to this internationalisation model that we call Production-Oriented Internationalisation of SMEs. Firstly, we show that existing theories do not explain Production-Oriented Internationalisation of Traditional SMEs. Subsequently, we propose a framework to direct the research on this issue. We focused the research on both the changes that are stimulated by this kind of internationalisation and on the consequent impact on SMEs competitiveness. Finally, we present a case-study. The empirical analysis is definitely a preliminary one and deserves a more thorough investigation. However, it suggests that the Production-Oriented Internationalisation is a phenomenon with both complex and potentially positive implications. The fact that several Traditional SMEs may undertake such a kind of internationalisation process makes this Production-Oriented Internationalisation of significant practical relevance.