The internet and information capability reduces perceived risk of internationalisation: An Australian SME perspective

Abstract

The Internet has the potential to generate international market expansion and future international growth for the firm. However, internationalisation is a complex high-risk decision for the firm, especially for the resource scarce SME. The Internet can assist to reduce the perceived risk associated with strategic decisions in the internationalisation of the firm. However, it is yet to be determined what impact the Internet has on reducing the perceived risk and uncertainty associated with internationalisation. The findings indicate that the Internet’s ability to generate valued international market information through the Internet’s enhanced communication interaction gives SME’s rational analysis in international market growth decisions. In conclusion, the Internet reduces the asymmetry of information that would traditionally exist for SME’s in the internationalisation process, which in turn, reduces the perceived risk associated with the internationalisation process of the firm.

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