They also compete on value, particularly in quality technology, and product design. While cost-competitiveness is important, it is not the key determinant of their export success. The overwhelming export success of smaller, high value-added exporters discredits the conventional wisdom that firms ought to pursue export opportunities cautiously, in a series of incremental steps. Today's realities call for leapfrogging. Exploiting their unique advantages, these firms can break out of the gradual pattern of internationalization and make bolder moves.
Rapid internationalization is feasible, and desirable, for a number of reasons.
Lack of knowledge about best export practices is less of a hinderance to firms today. That is, involvement in outsourcing, transfers of technology from foreign companies, countertrade, and similar activities prepare managers for more traditional, outward internationalization. Third, successful international business today is synonymous with successful partnerships with foreign businesses - distributors, trading companies, subcontractors, etc. Coupled with intense competition from foreign firms in domestic markets, these conditions call for rapid internationalization. The rise of small and medium-size enterprises that achieve considerable success in export markets is exciting.