Business Intelligence in the Internationalization of SMEs

This report examines the role of Business Intelligence (BI) in the internationalization process of Small and Medium Enterprises (SMEs). It begins by highlighting the increasing adoption of BI solutions and the limited research on their application in SME internationalization. The study employs the approach recommended by Wolfswinkel, Furtmueller, and Wilderom (2013) and builds upon a comprehensive theoretical framework. The report reviews existing literature to identify the challenges SMEs face when entering foreign markets, such as risk, lack of control, and inadequate information, leading to uncertainty. Drawing from the Uppsala model, the report suggests that SMEs often internationalize to less competitive markets to mitigate these uncertainties. While BI's role in SME internationalization is currently limited, its importance in exploring overseas markets and positively influencing export capabilities is emphasized, referencing studies by Miocevic, & Crnjak‐Karanovic (2011), Senik, & Sham (2011), and Segaro, Larimo, & Jones (2014). The report concludes that BI systems, due to their information-providing nature, have a positive effect on the internationalization process of SMEs, although relatively few SMEs implement these systems due to various critical success factors.

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There has been substantial rise in SMEs that use BI solutions. The use of BI solutions in the
process of internationalization of process of SMEs has not been explored comprehensively. The
approach recommended by Wolfswinkel, Furtmueller, and Wilderom, (2013) has been used in
the study by Jacobsen and Van Vugt (2017) to carry out the review. A comprehensive theoretical
framework of specific research topics has also been undertaken. Based on the literature review,
there is indeed a rise in the internationalization of SMEs even though there are drawbacks in
entering a foreign market (Reijonen, Laukkanen, Komppula, & Tuominen, 2012). Some of the
drawbacks include the risk, lack of control, and inadequate information about the foreign market
(Laufs and Schwens, 2014). As a result, there is uncertainty about the internationalization of
SMEs. But according to the Uppsala model, SMEs usually expand to a foreign market in a less
competitive country. This approach minimizes the uncertainty level and the absence of data
about the foreign nation (Forsgren, 2016). Therefore, internationalization takes place only when
there is a relatively low risk and uncertainty for the SME. Additionally, there is a limited role of
BI in the internationalization of SMEs, but the use of BI is important in exploring oversea
countries and it has a positive effect on the export ability of an SME (Miocevic, & Crnjak‐
Karanovic, 2011; Senik, & Sham, 2011; Segaro, Larimo, & Jones, 2014).

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References
Forsgren, M. (2016). A note on the revisited Uppsala internationalization process model–the
implications of business networks and entrepreneurship. Journal of International
Business Studies, 47(9), 1135-1144.
Jacobsen, O., & Van Vugt, M. (2017). The Role of Business Intelligence in the
Internationalisation process of SMEs.
Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
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Miocevic, D., & Crnjak‐Karanovic, B. (2011). Cognitive and information‐based capabilities in
the internationalization of small and medium‐sized enterprises: The case of Croatian
exporters. Journal of Small Business Management, 49(4), 537-557.
Reijonen, H., Laukkanen, T., Komppula, R., & Tuominen, S. (2012). Are growing SMEs more
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Segaro, E. L., Larimo, J., & Jones, M. V. (2014). Internationalisation of family small and
medium sized enterprises: The role of stewardship orientation, family commitment
culture and top management team. International business review, 23(2), 381-395.
Senik, Z. C., & Sham, R. M. (2011). SME internationalization intelligence information and

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knowledge on international opportunities. Gadjah Mada International Journal of
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Wolfswinkel, J. F., Furtmueller, E., & Wilderom, C. P. (2013). Using grounded theory as a
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