Understanding the Influences of Network Gained from the International Trade Show on SME’s Market Selection Stages

Abstract

           Network is considered as one of the most important factors of SMEs’ international business expansion. International trade show is a vital platform for developing network with foreign counterparts. Many studies have recently recognized the significance of network in the context of small firms. Nonetheless, the understanding of network gaining from participating in the international trade show is still limited especially in the emerging markets. Therefore, studies call for further research on the role of networks in the internationalization process of small firms. Besides, network can influence firm’s internationalization especially market selection process. Since the international market selection process is significant to determine export success, thus, the purpose of this study is to understand the influences of network that SMEs acquire from international trade show participation on different stages of market selection, which are prescreening, in-depth screening, and final selection. The semi-structure interview twenty two sampler of Thai SMEs was conducted to find the impacts of different network types on international market selection stages. Three types of network, buyer, competitor, professional and government network were found to influence international market selection stages. The findings also indicate that network facilitates business development and affects decision making. Types and roles of network as well as network theory are discussed to reflect the influence of network on different stages of international market selection.