theinternationalizationstrategiesofsmes.docVIP

THE INTERNATIONALIZATION STRATEGIES OF SMEs: THE CASE OF THE SLOVENIAN HOTEL INDUSTRY Mitja Ruzzier, Maja Kone?nik Received: 19. 5. 2005. Original scientific paper Accepted: 20. 2. 2006. UDC: 640.4 (497.4) The paper presents the theoretical background to internationalization strategies for the case of the hotel industry. However, although the hotel industry’s internationalization has already been analyzed, the paper presents a rare example of its application to small and medium-sized hotel firms. In order to reveal the distinctive internationalization development strategies of SMEs we propose a framework for analyzing and understanding the four main internationalization dimensions: operation, market, product, and time. The characteristics of the proposed dimensions were analyzed by examining four Slovenian small and medium-sized hotel firms. Our findings imply that internationalization is a necessary step for small and medium-sized hotel firms, but each hotel company should find the proper combination of all four dimensions that matches the resources available to it. 1. INTRODUCTION Recent research studies on the internationalization of the hotel industry mostly cover large hotel firms or hotel chains that operate in the international environment (Go, 1989; Go et al., 1990; Litteljohn Beattie, 1992; Contractor Kundu, 1998a 1998b; Rodriguez, 2002). However, although large hotel enterprises are the main players in the supply for tourists’ overnight stays, smaller suppliers and their important role for the local environment should not be neglected. However, small and medium-sized enterprises (SMEs) have attracted more attention in recognition of their economic role and contribution to growth. Their role in OECD economies continues to be crucial for boosting economic performance, particularly in light of the recent slowdown seen in economic growth. SMEs represent over 95% of enterprises in most OECD countries and generate over one-ha