The Role of Network Ties on SMEs Internationalization Process in the Developing Countries Emerging Markets: A Comparison between Mongolia, China, and Malaysia

Abstract

Purpose: The paper aims to investigate the role of all types of networking on SMEs' internationalization process in general. Then, to compare SMEs' networking approaches in the selected three countries and their main differences in terms of network creation and operation. Finally, to report effective SMEs' internationalization practices in Malaysia and China, which should be adopted in Mongolia. Approach/Methodology/Design: The study is descriptive and used secondary data as the primary source. We concluded institutional networking substituted by the social and business networking ties in developing countries such as China, Malaysia, and Mongolia. Findings: These SMEs rely heavily on the information collected by the personal channels to bring about both pros and cons for their internationalization process. Secondly, the policymakers should establish the private specialized firms or export agencies established in Malaysia and China a long time ago to address information and knowledge barriers faced by SMEs in Mongolia. Practical Implications: The first implication is SME managers or owners in developing countries prefer to have strong social relationships with actors, which help them to receive some benefits and accelerate their internationalization process, but it results in neglecting institutional networking some crucial roles.