Coping with Risk in the Internationalization of SMEs

Although risk has received considerable attention in the internationalization literature, many aspects still remain under-researched. The aim of this study is to examine how the risk associated with internationalization is being handled in small and medium-sized enterprises as well as how managerial perceptions influence risk accommodation. Semi-structured interviews were used to explore experiences of a group of international Danish SMEs. Findings show that SMEs follow different strategies of coping with risk and uncertainty in the internationalization process depending on key decision-maker’s subjective assessment of the risks associated with international activities and the controllability of these risks.