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.