RUSSIAN SMES’ DECISION TO ENTER FOREIGN MARKETS

This study focuses on analysing the decision-making processes of Russian small and medium-sized enterprises (SMEs) when entering international markets. Key aspects of internationalisation are examined, including market selection, entry strategies and the factors that influence these decisions. Particular attention is paid to the characteristics of SMEs, such as resource constraints and limited opportunities, which affect their behaviour in international markets. Concepts of internationalisation of new international ventures (INVs) are explored, including different types of start-ups and the concept of ‘born globals’. The role of entrepreneurial dynamism, flexibility, and motivation in overcoming competitive disadvantages against large corporations is discussed. Issues related to the impact of operating in foreign markets on knowledge accumulation and improved business efficiency, particularly under conditions and restricted access to resources, are also addressed. An analysis of 421 Russian SMEs revealed that the choice of internationalisation strategy is significantly influenced by factors such as the effectiveness of innovation activities and the industrial sector of the company. Despite successes in international operations, the current situation poses challenges that are leading to reduced investment in innovation. Geopolitical risks increase costs and discourage companies with a horizon-expanding strategy from exploring new markets. Decisions about external market choices are based on personal and inter-firm networks. Long-term experience in foreign markets facilitates the transition to developed country markets and promotes innovation. It is common for Russian SMEs to establish subsidiaries and branches abroad without a step-by-step approach.