Acquiring International Knowledge and Experience: Internationalization of Small and Medium Enterprises (SMEs)

Shankar Chelliah,Mohamed Sulaiman

doi:10.32890/ijms.18.2.2011.10348

Abstract

Purpose – This paper intends to understand the importance of acquiring international knowledge and experience and its relationship in the internationalization of Small and Medium Enterprises (SMEs) in the Malaysian context. Within this scope, this study sets out to further the discussion by comparing the global orientation of SMEs in Malaysia with their different levels of firm size. In a nutshell, the study further understands the moderating effect of firm size between the relationship of international knowledge and experience, and internationalization of SMEs. Design/Methodology/Approach – The study is based on literature review in the areas of SMEs internationalization, international knowledge and experience, and the firm size. The data was collected using a survey instrument among 300 internationalized enterprises located in the northern region of Malaysia. Findings – The results suggest that those firms that acquire international knowledge and experience have no significant relationship with firm internationalization. However, when firm size is used as a moderating factor, acquiring international knowledge and experience shows some importance for internationalization of firms. Interestingly, international knowledge and experience are important for relatively smaller firms. In other words, firm size is significant when relatively smaller SMEs acquire international knowledge and experience. It poses some implications for managers and policy makers. Originality/Value – This study explores the use of the index of internationalization to measure the internationalization of SMEs in Malaysia. Keywords: International knowledge and experience, index of internationalization, firm size.

Highlights

A highly-skilled human capital possessing international knowledge and experience is an undeniable requirement for sustainable economy at the macro level
The results suggest that those firms that acquire international knowledge and experience have no significant relationship with firm internationalization
This study explores the use of the index of internationalization to measure the internationalization of SMEs in Malaysia

Summary

Introduction

A highly-skilled human capital possessing international knowledge and experience is an undeniable requirement for sustainable economy at the macro level. The predicament is that the higher the liberalization of the industrialization, the higher is the importance for the SMEs to acquire such continuous learning to sustain their competitiveness in the international market. The importance of international knowledge and experience has received considerable attention in the last few years. Despite this attention, and the creation of knowledge-management departments in many companies, including SMEs, the depth and intensity of that knowledge and experience still has a long way to go. Many have argued that we are in a knowledge economy in which intellectual capital is very crucial and has to be given equal importance as the other factors of production

Methods

Results

Discussion

Conclusion