" International Entrepreneurship 5them conduct trade internationally and ultimately, achieve export performance (Reid 1983).Unlike the traditional model where SMEs focussed on strategic approaches that are planned andmonitored, most entrepreneurial SMEs prefer evolutionary strategies through a combination ofoptions and methods, transformative organisational strategies for handling internationalisedtrade.In addressing the issue of internationalisation and performance of „born-global SMEs,?Zhou and Luo ( 2007) argued that social networks that are home-based play a significant role incoalescing inward and outwards relationships that relate to the firm?s performance andinternationalisation. This mechanism of mediation is attributed to the benefits of information thatarise from social networks – experiential learning, international market opportunities andknowledge as well as solidarity and referral trust. Business executives therefore are expected toconsider social networks as efficient modes to help SMEs go „international? rapidly andprofitably (Zhou, Wu and Luo 2007). Of great concern is the analysis of firms approach and strategies towardsinternationalisation. SMEs today face critical issues on ways to sustain their competitiveadvantage in a situation where there are increased complexities between international trade andbusiness links. The double pressure of international competition and trade liberalisation plaguefirms. This has seen SMEs either falling out or adopting different strategies. Mostentrepreneurial SMEs have realised the need for evolutional modes and strategies as opposed toplanned strategic approaches. In determining the strategy of internationalisation some factorsneed to be taken into consideration. These include: Uncertainty and dynamism in the firm?senvironment, nature of the home market, industry and segment, knowledge availability,International Entrepreneurship 6entrepreneur and management previous experience, firm?s innovativeness and innovation skills,and network links (Gianpaolo and Fabio, 2008). Evolutionary strategy according to McDougall and Oviatt (2000, p. 903) is termed as thecombination of strategies which include proactive, and innovative behaviours beyond thenational borders. This embarks on the concept of entrepreneurship that is characterized bydiscoveries, evaluations, management and opportunity exploitations (McDougall and Oviatt2005).It is a modality where entrepreneurs through their entrepreneurial skills see internationalmarkets and through innovation, risk taking philosophy commit invest in resources andcapabilities in order to seize the market (Armario, Ruiz and Armario 2008). This evolutionarymodel is what is termed as born- global internationalisation approach.Firms adopt the „born global? approach where companies enter international marketsfrom conception to growth. Other than following a set of plans and strategies, these firms enterdifferent countries at once (Kocak and Abimbola 2009).This is made available due to someexternal factors including technological advancement in production, knowledge of foreignmarkets and the advancement of transport and communication. In addition, liberalisation iscreating a desirable environment for SMEs to go global (Lim and Kimura, 2010). Planned Strategic ApproachSome of these contemporary planned and strategic approaches adopted to aligncompanies to internationalisation include the stage theory approach, incremental approach andholistic approach (Fletcher 2001).Stage theory approach requires firms to start by selling products at home before lookingfor external markets. Among the models identified with this approach include the product lifecycle theory where firms introduce new products only in their markets (Segerstrom andInternational Entrepreneurship 7Dinopoulos 1990). Such firms can eventually go global and maintain an internationalinvolvement through the Uppsala International Model (Vahlne and Johanson 2013).i. Product Life cycle ModelThis model is also known as the Vernon´s life cycle model that was coined by Vernon(1966). According to the model, firms? internationalisation does follow the product life cycledevelopment where products are developed at a home country and exported at external markets.These products in most case become standardized and used to meet the local demand. Anexample of this is the Coca-Cola Company that is broadly used in many countries as a standarddrink.ii. Uppsala ModelThe incremental characteristic of firms? international involvement is used to describe theUppsala Model (Johanson & Vahlne, 2006). Through the model, firms often begin theirinternationalization from markets considered to be psychologically near.Through constantinvolvement with market interconnections, these firms ultimately gain experience and skills tobroaden their markets to those considered having greater psychological distance. The Uppsala Model sought to bring improvement of the Vernon model. In adopting anintegration approach of the two models within the stage approach, entrepreneurial SMEs will bein a position to explain the evolution of a company within a domestic setting as well as betterexplain the internationalisation process (Contractor, Kundu and Hsu 2003). Advantages and disadvantages of planned strategic approach Versus EvolutionaryUnlike the modalities of the contemporary internationalisation, the evolutional strategiesof firms do not really face out the SMEs in the competition landscape. However, the firmsInternational Entrepreneurship 8ultimately are plagued with struggles to professionalise their activities in terms of procedures ofstrategic planning, organisational structure, decision-making systems as well as systems ofinformation technology and accounting systems.The following addresses the advantages of theplanned strategies that make them preferable to evolutionary as well as their disadvantages thatmake firm continue relying on the evolutionary strategies. Advantages DisadvantagesEvolutionary Approach 1. The „born global? approach helps 1. Since the approach is globalto diversify global market since it in nature, it lacks a domestichas the potential to reach a diverse market to rely on as a point ofaudience although the challenges leverage. For this reason, mostassociated with this include the entrepreneurial SMEs opt fortime to create a foundation that can evolutionary strategies.be unstable since the venture requires fast paced market entrystrategies (Vincze 2004).2. In addition, the attempt to goglobal requires additional capitalespecially if the market option isFDI in nature (Luo and Tung2007).Stage Theory Approach 1. It helps entrepreneurial SMEs to 1. It is „deterministic? in(Products’ Life Cycle identify the loops within their nature: With a rapid decline ofand Uppsala Model) product designs and evaluate them operations costbefore they get to the international (communication and transport)market (Fletcher 2004). firms no longer consider the theory relevant and hence are prone to skip some stages (Oviatt & McDougall, 1994)."