SME exporting challenges in transitional and developed economies

Purpose – This research seeks to extend earlier work by Scharf et al. (2001) that examined the challenges faced by SMEs along their path of internationalization. In particular, the internationalization process in transitional and developed economies is examined. Design/methodology/approach – The central research methodology for the project uses a qualitative approach involving the in‐depth investigation of a “critical incident.” The incident explored is the firm's “worst nightmare” or “biggest challenge” in conducting international business. Respondents are asked to “tell the story” of the “critical incident”, its nature and consequences. Findings – SME exporters in the transitional economy encountered export problems related to product quality acceptance and logistics management. In comparison, SME exporters in the developed economy faced issues such as country differences, general business risk, and logistics. Research limitations/implications – The research methodology provides both limitations and benefits. This type of in‐depth critical incident analysis lends itself to small sample sizes, in this paper 29 cases. The limitation is the generalizability of the findings because of the small sample. The benefit is that the methodology yields an in‐depth understanding of the challenges faced by SME exporters. Originality/value – This paper extends earlier work examining challenges faced by SMEs by comparing the experiences of managers in two different economic environments and finding differences in their respective challenges.