Journal of Industrial Engineering and Management Studies

Abstract Manufacturing small and medium enterprises (SMEs) in Iran play a pivotal role in employment, innovation, and industrial output. However, national financial crises, such as economic sanctions and currency devaluation, coupled with global disruptions like the COVID-19 pandemic, threaten their sustainability. This study aims to develop a comprehensive framework for the internationalization of Iranian manufacturing SMEs under crisis conditions. Employing a qualitative approach, data were collected through 20 semi-structured interviews with managers from SMEs in the automotive parts, food, industrial machinery, plastics, and pharmaceutical sectors. The analysis identified key drivers, challenges, strategies, market entry pathways, and outcomes of internationalization. Findings revealed that currency devaluation (85%), domestic market stagnation (75%), and opportunities in neighboring markets (95%) were primary drivers. Challenges included foreign currency payment issues (85%), logistical barriers (80%), and lack of awareness of international regulations (60%). SMEs adopted strategies such as flexible currency contracts (90%), barter trade (60%), cryptocurrencies (25%), and export-oriented technological advancements (55%). Market entry pathways, aligned with the Uppsala model, encompassed commercial networks (95%), local agents (95%), and international exhibitions (45%). Outcomes included sustainable growth (85%), entry into new markets (75%), and job retention (60%). The proposed Structural Interpretive Model (SIM), integrating the Uppsala model, network theory, and risk management principles, offers a practical framework validated through theoretical and practical triangulation. Recommendations include training programs, government support, and investment in digital infrastructure.