1 STRATEGIES FOR INTERNATIONALISATION WITHIN SMEs: THE KEY ROLE OF THE STRATEGIC LEADER AND THE INTERNATIONALISATION WEB Lester Lloyd-Reason and Terry Mughan Anglia Ruskin University KEY WORDS: SMALL FIRMS, SMEs, INTERNATIONALISATION, STRATEGIC LEADERSHIP ABSTRACT In this paper we argue that the current debate within the literature concerning the internationalisation of business operations relies heavily on the larger firm experience which does not necessarily represent an easily transferable model for the small firm . We contend that although an incremental model is relevant in many instances, small firms are often opportunistic, intermittent internationalisers and it is the international orientation of the decision maker, often the owner-manager, which is the key to the international activity of the firm. Furthermore, we suggest that this orientation has its roots within the internal culture of the firm which is reinforced by the external cultural environment. We argue that it is this internal culture which should be the focal point of small firm support mechanisms as they attempt to internationalise their business operations. We have developed a model called ‘the internationalisation web’ to illustrate these issues and to provide a focus for policy. INTRODUCTION Small and medium sized enterprises (SMEs) today are faced with the critical issue of how to create and maintain a sustainable competitive advantage in the light of the increased complexity of international trade and business links. The strategic imperative facing firms of all sizes is how to respond to the double pressures of trade liberalisation and increasing international competition. Traditional ways of competing whereby the firm could differentiate itself on the basis of technology, product or price are fast disappearing and the firm must look to new solutions. Firms able to access the benefits of international markets such as low cost production facilities, economies of scale in production, distribution marketing and management and able to translate these benefits into lower prices are able to decimate those enterprises still stuck in their old assumptions about the way in which the business world works. Domestic markets are no longer the preserve of indigenous companies since the latter are under attack from overseas competitors. Small and medium sized enterprises (SMEs) are not immune from this impact of the internationalisation of markets and