Internationalisation of SMEs: development and validation of a multi-dimensional measurement scale

Abstract

The purpose of this study is to develop a multi-dimensional measure for internationalisation of small and medium enterprises. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was used on primary data collected from Indian SMEs. The developed measure was tested for reliability and validity. We found that 'degree or extent', 'speed', and 'scope' are the three dimensions of Internationalisation in SMEs, and found reliable and valid to measure this construct. Results of this study contradict with some past studies which supported Internationalisation of SMEs being a unidimensional construct. But, results also supported few past studies, which supported Internationalisation of SMEs being a multi-dimensional construct. This study will imply to practitioners in assessment of internationalisation in their SMEs, related to degree, speed and scope. To policy makers, for analysis of government policies for internationalisation of SMEs. Objectives of policies and programmes to promote Internationalisation in SMEs can be set accordingly. In addition, international entrepreneurship researchers can use this measure to further study and investigate Internationalisation of SMEs. This study provides a ground for future to add more dimensions to internationalisation.