Globalization refers to changes in the way nations, regions, organizations, groups and individuals interact across national boundaries (Rondinelli and Behrman, 2000). This is an ongoing process that gradually eliminates national and regional preferences and ultimately transforms the world into a single market (Levitt, 1983) through international trade in goods and services, cross-border flows of capital, and the exchange of technology ( Nunnenkamp et al, 1994) Trade facilitation agreements, including the North American Free Trade Agreement (NAFTA), have regionalized markets and have had a significant impact on the way businesses operate around the world, placing increasing importance to the internationalization of companies (Falbe & Welsh, 1998). Research on the internationalization of small firms is usually based on the assumption that small and medium-sized firms suffer from disadvantages compared to their larger counterparts (Bonaccorsi, 1992). Operating on international markets requires resources, experience, skills and knowledge that small businesses often lack (Bell et al, 1992). It is evident that the combination of insufficient resources and inadequate management capabilities discriminates against small businesses compared to larger ones in the globalizing world (Etemad, 1999). Johanson and Mattsson's (1993) internationalization theory implies that when firms saturate their domestic market, they will take into account the drivers and barriers of globalization. Drivers may include pressure from other internationalizing SMEs to remain competitive, opportunities to increase revenue and profitability, opportunities to capture a broader consumer base, and opportunities for business expansion (Johnsen & Johnsen, 1999). Barriers may include the need for an innovative approach... middle of paper... eting Institute, the purchasing decisions of nearly two-thirds of U.S. grocery shoppers are motivated by the desire to reduce the risk of, or manage , a specific health condition (Sloan, 2000). In recent years, the most visible sign of the wellness revolution is the media interest that focuses on how modern societies view health. There are a limited number of SMEs active in the natural foods sector. These companies mainly produce healthcare products for market niches or offer "me-too" products following the pioneering products of multinationals. In general, SMEs do not have the know-how and resources for their own research and development and cannot afford to spend large sums of money on specific information or advertising (Menrad, 2003). Knowledge is recognized as one of the most important drivers of the health and wellness sector.