The paper is devoted to strategic behavior of small firms both in the light of theory as well as selected empirical results. The choice of internationalization strategy is a key decision for firms entering foreign markets. During the past decade significant differentiation of strategic options among SME's have been observed. In response to developments in the international environment, more complex forms of international behavior have evolved. These changes also call for a new approach that embraces more holistic view of internationalization. The aim of this paper is to follow both strategic behavior of selected SME's and the evolution of theoretical frameworks.