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How do small firms become global—and why do so many capable ones never make the transition?

Drawing on an extensive multi-year research program involving over 900 small and medium-sized enterprises across Vietnam, this book challenges the way we have traditionally understood SME internationalisation. Rather than viewing firms simply as exporters or non-exporters, it reveals internationalisation as a complex, staged journey shaped by capability, constraint, and decision-making under uncertainty.

At the heart of the book is the Three-Tier SME Internationalisation Model, developed from rich empirical evidence and grounded fieldwork. This model moves beyond static classifications to present a dynamic, process-based understanding of how firms evolve—from domestically focused enterprises, to export-capable firms, and ultimately to active participants in global markets.

Central to this journey is what the book identifies as the “Missing Middle”—firms that possess the motivation and technical capacity to export, yet remain unable to take the decisive step. These firms are not constrained by a single barrier, but by an accumulation of financial, institutional, and psychological challenges that prevent capability from translating into action.

Through a unique combination of quantitative modelling, focus group insights, and detailed case narratives, the book uncovers the underlying mechanics of internationalisation. It demonstrates how managerial capacity—motivation, risk-taking, knowledge, and self-efficacy—must be channelled through deliberate innovation strategies to produce sustained global engagement. Without this alignment, firms remain trapped in preparation, circulating within intention but unable to execute.

Importantly, this is not just a book about theory. It is grounded in lived experience. The voices of SME leaders—captured through focus groups and case studies—reveal the tensions between ambition and hesitation, opportunity and constraint. Their stories bring to life the reality that internationalisation is rarely linear; it is uneven, iterative, and often uncertain.

The book also reinterprets established theories of internationalisation in light of contemporary realities. It shows how factors such as technological change, standards adoption, and global networks are reshaping the pathways available to SMEs, enabling some firms to accelerate their progress while leaving others behind.

Written for policymakers, SME leaders, development practitioners, and scholars, this work offers both analytical depth and practical insight. It provides a clearer understanding of how firms build capability, overcome barriers, and engage with global markets over time. More importantly, it reframes the challenge—not simply as one of enabling exports, but of enabling transition.

Ultimately, this book is a bridge between research and practice. It captures the real journey of SMEs as they move from intention to action, from readiness to participation, and from local survival to global ambition. It is a timely and necessary contribution to understanding how small firms step onto—and succeed in—the global stage.

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