The Influence of the Internet on Conduct the Channel of Export in SMEs

This study surveys small and medium-sized enterprises (SMEs) choices of export channels (direct vs. indirect export), when the internet is used as an informative and communicative tool in the international environment. For the purpose of this study, which is to determine whether the internet affects the choices of export SMEs distribution channels, and if so, how internet capability and internet use influence those exporting choices, however, two conceptual models are proposed? The first model is developed to test the critical relationship between internet capability and the firm choice of direct export. The second model briefly illustrates proposed constructs and their relationships to internet use with the direct-export choice of SMEs. In the second model, the stage model of internationalization and Transaction cost theory wereused to explain how the Internet capabilities and use could impact on the export channel choices of SMEs. The theoretical explanation of the stage model of internationalizationhas been supported by the survey data but the degree of information from foreign markets that were gained by using of internet is not considerable. Using transaction cost theory to explain the phenomenon that created some questionable results. On the one hand, findings show that internet use can reduce foreign business partner's behavioral uncertainty, perceived Iranian manufacturing and exporting food SMEs. But, on the other hand, they show that reduced behavioral uncertainty of foreign partners will not result in lower transaction costs.