Internationalization Of Small And Medium-sized Enterprises Research Articles

SMEs internationalization by grafting knowledge. Unveiling the enabling mechanisms of strategic knowledge management

ABSTRACT International knowledge plays a crucial role for firms willing to internationalize. Small and medium-sized enterprises (SMEs) often try to graft it from external sources, such as advisers, consultants, etc. Among them, Temporary Export Managers (TEMs) are becoming a viable solution among SMEs to access readily available international experience at a relatively low cost. However, it is unclear how SMEs graft knowledge from TEMs and how SME-TEM interactions translate into impacts on the firm’s internationalization strategy. To address this gap, we examined 20 cases of the TEM-SME collaboration, conducting 48 semi-structured interviews in Italy. The results show that three main knowledge mechanisms are activated through TEM-SME interactions: mobilization, integration, and recombination. A grounded interpretative framework is proposed to show how these mechanisms affect strategic international knowledge, encompassing differentiated-to-differentiated, differentiated-to-integrated, and integrated-to-integrated knowledge trajectories. The study offers insights to both TEMs and SMEs to enhance knowledge grafting processes to impact SMEs’ international development.

Open innovation and internationalization of SMEs: a systematic literature review

PurposeOpen innovation (OI) significantly impacts the internationalization of small- and medium-sized enterprises (SMEs) by connecting them with external resources and accelerating their innovation processes. This study aims to systematically evaluate and synthesize existing knowledge on the role of OI in the internationalization of SMEs.Design/methodology/approachThrough a systematic literature review method, this study critically evaluates 35 articles published between 2003 and 2023, synthesizing existing research from theoretical, contextual, characteristic and methodological perspectives.FindingsThis study identifies theoretical, methodological, characteristics and contextual research gaps and further proposes a research agenda for expanding knowledge in the field. Additionally, it provides an overview of the antecedents of OI adoption, SMEs internationalization outcomes and the influencing mechanisms of OI on SMEs internationalization found in the literature, thereby establishing a foundational knowledge base for future scholars and practitioners in this field.Originality/valueThis review contributes to the existing literature by consolidating current knowledge on the topic and advancing the understanding of the intersection between OI and the internationalization of SMEs.

Challenges and Strategic Approaches in SME Internationalization: A Literature Review

This paper explores the challenges and strategic approaches in the internationalization of small and medium-sized enterprises (SMEs). By conducting a systematic review of key literature, the study identifies three main challenges: resource constraints, regulatory and compliance barriers, and risk management. These obstacles significantly impact SMEs' ability to expand globally. However, the review also highlights strategic approaches that can help SMEs mitigate these challenges, including forming strategic alliances, adopting digital technologies, and diversifying leadership teams with international expertise. The findings suggest that SMEs must integrate market knowledge, local networks, and technology to enhance their international competitiveness. The paper offers practical recommendations for SMEs and policymakers to facilitate smoother international expansion.

Entrepreneurial alertness, international performance, and the role of effectuation in SME internationalization

ABSTRACT By shedding light on the often-overlooked early stages of opportunity development initiated by entrepreneurial alertness and its performance outcomes in an international setting, this study examines the interplay between alertness and two decision-making logics, effectual flexibility and causal prediction, in the context of small- and medium-sized enterprises (SMEs) internationalization. Leveraging structural equation modeling on a data set of 680 manufacturing SMEs across five countries, this study uncovers distinct effects: effectual flexibility moderates, while causal prediction mediates, the positive relationship between alertness and the international performance of SMEs. The research makes noteworthy contributions to international entrepreneurship literature by linking alertness with performance in the international context and disentangling the nuanced pathways through which SMEs can achieve success in the global arena.

INNOVATIVE STRATEGIES IN RISK MANAGEMENT AND CRISIS RESPONSE IN BUSINESS

The growth and sustainable development of companies depend on their ability to adequately and effectively identify and utilize innovative strategies. The aim of the study is to determine the results of the innovative strategy of international small and medium-sized enterprises (SMEs) in times of economic crisis. The research involved 360 owners and managers of international SMEs in the European Union. The study used tabular and graphical methods, surveys, questionnaires, and correlation and regression analysis. It was found that 82.7% of SMEs improved their production processes, while 62.8% implemented innovations by acquiring new products or equipment. It was established that 82% of enterprises implemented innovative strategies in the commercial or trade sector, 73.2% in the service sector, and 77.7% in other sectors. The models developed in the study contribute to the modern development of the economy since they analyze the relationship between innovative strategies and determinants affecting their successful implementation and implementation. Prospects for further research include analyzing the types of innovative strategies that prevail in the activities of international SMEs, as well as their size and sectors of activity.

Trade policy revisited: how government support initiatives affect international performance in SMEs?

PurposeThis paper aims to understand how government support initiatives can enhance the international performance of small and medium-sized enterprises (SMEs). To address the gap of literature, this paper employed three theoretical lenses to examine both of direct and indirect relationships between two main constructs.Design/methodology/approachThis empirical study is based on data collected from Armenian exporter SMEs. The data collection utilized a random sampling approach, resulting in 138 fully completed questionnaires, yielding a response rate of 28.4%, comparable to previous studies in international business research. This sample includes firms from three main sectors: agriculture, manufacturing and services, reflecting the structure of Armenia's international trade. Relationships were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM).FindingsThe results of this study indicate that government support initiatives lack a direct impact on international performance, while positing instead an indirect connection between the two constructs through strategic capability and institutional pressures.Originality/valueThe results of this study contribute to the international business literature in several ways. First, it surpasses the conventional examination of government support on firm performance by delving into both the direct and indirect relationships between these constructs. Second, it reveals that not all theoretical viewpoints hold equal strategic importance in explaining the internationalization of SMEs. From the practical point of view, findings help policymakers to maximize a country's export capacity by implementing tailored initiatives, considering the unique requirements of SMEs.

Businesses model innovation: a key role in the internationalisation of SMEs in the era of digitalisation

The study investigates the relationship between digital technology (DT) and the degree of internationalisation of small- and medium-sized enterprises (SMEs). The theoretical model is further extended by reviewing the mediating effects of business model innovation (BMI). The study employed partial least squares structural equation modelling (PLS-SEM) to test the hypotheses based on the cross-sectional data from 495 SMEs in Vietnam. The findings provide a novel perspective on the vital role of DT in BMI. However, DT poses challenges for SMEs in the degree of the internationalisation process. This study combines the internationalisation theory, particularly the Uppsala model and the resource-based view to examine the impact of DT on the internationalisation of SMEs through the mediating role of BMI.

Mitigating the impact of late internationalization of emerging market SMEs: A dynamic capability perspective

ABSTRACT In this study, we investigate the impact of internationalization timing on the export performance of small and medium-sized enterprises (SMEs) in emerging markets. Our theoretical foci are the learning advantage of newness theory and the dynamic capability perspective to focus on how late internationalization can adversely affect export performance. Our findings suggest that the dynamic capabilities and industry experience of the SME Manager can mitigate these adverse effects. The time since initial international entry and an informal approach during export commencement exacerbate them. This conclusion is based on examining a substantial dataset, encompassing 8,278 SMEs from 84 emerging economies, collected over 14 years (2006–2020). This study uncovers novel insights into the intricate dynamics of SME internationalization and its influence on export performance.

Unveiling the synergy: entrepreneurial effectuation and alliance-driven SME diversification

PurposeInternationalisation is a complex and uncertain process for small and medium-sized enterprises (SMEs), characterised by challenges such as limited resources, lack of international experience and uncertainty in foreign markets. This study aims to explore the impact of entrepreneurial effectuation on the diversification of products and market expansion. Additionally, it examines the mediating role of alliance capabilities in this relationship.Design/methodology/approachThis study developed five hypotheses based on an extensive and relevant literature review. Data were collected using nonprobability judgemental and snowball sampling techniques from 202 software exporting firms in Bangladesh to measure the relationship. Data collected from the survey were then analysed using partial least squares-structural equation modelling.FindingsThe results of this study show that all five hypotheses developed in this study are supported. This study found a positive impact of entrepreneurial effectuation on product and market diversification. Study results also show that alliance capabilities mediate the relationship between entrepreneurial effectuation and product and market diversification.Research limitations/implicationsIn the face of internationalisation uncertainties, SMEs use effectual decision-making logic and form strategic alliances to enhance their competitive positions. This research contributes to understanding how SMEs use effectuation in navigating international markets and expanding their product portfolios and market reach.Originality/valueThis study pioneers a mediation approach to explore the relationship between entrepreneurial effectuation, alliance capabilities and diversification in SME internationalisation. Examining the interplay of decision-making logic and collaborative ventures, this study offers insights into the complexities of SME internationalisation in uncertain environments.

International ownership and SMEs in Middle Eastern and African economies

AbstractEmpirical evidence on the benefits of international ownership for small and medium‐sized enterprises (SMEs) financial performance is either not available for most African and Middle Eastern countries or presents mixed results. In this paper, we investigate this further by examining the effects of ownership structure on firm performance, using financial data covering SMEs in 60 African and Middle Eastern countries, for the years 2006–2015. Results from pooled ordinary least squares and random‐effects estimations indicate that international ownership is significantly positively correlated with firm performance for (most of) Africa and the Middle East. Examining the interaction of international ownership with capital resources, we find that internationally owned firms do not use capital more efficiently than locally owned firms, implying that internationally owned firms use international resources—other than capital—more efficiently.

A knowledge-based perspective on SME foreign market entry mode choices and changes

PurposeDespite the importance of foreign market entry mode (FMEM) decisions for the internationalisation of small and medium-sized enterprises (SMEs), there is insufficient understanding of the knowledge types and sources necessary for such decisions. This study addresses this issue by investigating the knowledge configurations that underpin FMEM initial choices and subsequent changes in SMEs.Design/methodology/approachThis study adopted an interpretive approach and analysed empirical data from 37 in-depth interviews with decision-makers in internationalised SMEs from the United Kingdom.FindingsThe findings reveal that different knowledge configurations drive FMEM decisions in SMEs. Based on the analysis conducted for this study, initial FMEM choices draw on prior experiential knowledge combined with knowledge from desk research and knowledge acquired from peers, competitors and international partners. However, unlike many previous contributions, this research shows that foreign market experiential knowledge does not influence mode changes. Within-mode changes rely mainly on mode-specific knowledge and on knowledge about exploiting the benefits of the internet and digital platform ecosystems. Conversely, between-mode changes draw on diverse knowledge that is frequently created in interaction with international stakeholders or acquired externally.Originality/valueThis study contributes to the SME internationalisation literature by highlighting the knowledge configurations that inform not only initial choices but also between- and within-mode changes. Moreover, it reveals the importance of distinct types of digital technology-based knowledge for facilitating mode changes. It also adds to the knowledge-based perspective by underscoring that dynamic and heterogenous knowledge configurations, often created in interaction with international stakeholders, promote firm internationalisation.

MAPPING THE GLOBAL RESEARCH ON COMPETITIVENESS AND INTERNATIONALIZATION FOR SMALL AND MEDIUM ENTERPRISES

Develop a concept that enables proprietors of small and medium-sized enterprises (SMEs) to enter international markets more environmentally consciously, building upon the author's blueprint. A systematic literature review (SLR) investigates the complexity associated with the Internationalization of SMEs. The author complies with the following procedure: retrieve metadata from the top 35 papers tagged with the keywords internationalization, competitive advantage, and SMEs in Scopus (April 2024), sort the articles by citation count, and select reviews and SMEs as the focus of the discussion. Key players and determinants of competitive advantage for the Internationalization of SMEs are subsequently identified through bibliometric visualization and qualitative data analysis software (Biblioshiny, R Studio). The findings uncover the primary theories of Internationalization, prominent authors, reviews, and sources, and supplement Werner's determinant with several illustrative tables and graphs. The findings mentioned above demonstrate the growing significance of theories concerning competitive progress. Much work remains to be done regarding the Internationalization of small and medium-sized enterprises (SMEs), specifically about the factors contributing to a company's success in foreign markets and its establishment in the domestic market. For the future successful Internationalization of SMEs, a contribution to science is an update on pertinent topics and the identification of specific trends and gaps, including inter-theoretical integration, discourse variables, strategic fit versus opportunism, network theories concerning niche marketing, born-glocal strategies, and disruptive technologies

Early, Rapid or Global? Internationalization Speed and SME’s Performance

The article investigates the impact of three dimensions of the speed of internationalization speed – the entry timing, the initial speed and the pace of international expansion – on the performance of exporting small‐ and medium‐sized enterprises (SMEs). To this purpose, we adopt a mixed-method approach analysing quantitative and qualitative data on Italian-exporting SMEs. The results show that entry timing, which is not relevant per se, moderates the positive impact of the initial speed on SME’s performance. Furthermore, a higher pace of international expansion is negatively related to the performance of SMEs. Building on the early internationalization literature, the study contributes to the existing literature on performance outcomes of the speed of internationalization of SMEs. The study has managerial implications for managers and entrepreneurs who are planning to internationalize.

Digitalisation and internationalisation in SMEs: a systematic review and research agenda

PurposeThe purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an enabler for their internationalisation process and as a comprehensive view of the specific domains impacted by digital technologies as well as their repercussions on the international outreach.Design/methodology/approachA systematic review which leverages a descriptive analysis of extant literature and an axial coding technique has been conducted to shed light on the current knowledge and to identify primary research areas and future research lines.FindingsThe research indicates that digitalisation impacts the internationalisation of SMEs in three specific domains: (1) internationalisation through the adoption of information and communication technologies (ICT) technologies and e-commerce platforms; (2) international expansion through the digitalisation of value chain activities and (3) international outreach through knowledge acquisition on digital platforms.Originality/valueThe value of this study is threefold. First, the authors attempt to systematically review the literature on SMEs digitalisation and internationalisation and provide a holistic perspective on the intertwining of these two research streams. Second, the authors propose a novel conceptualisation on the dimensions of SMEs digitalisation as enablers to internationalisation. Third, the authors put forward promising future lines of research.Highlights Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.

A study on analysis of financial challenges of Small and Medium Sized Enterprises (SMEs) in international markets with special reference to blantyre commercial Center-Malawi, Central Africa

Small and Medium-Sized Enterprises (SMEs) play a pivotal role in economic development, particularly in emerging markets like Malawi. However, these enterprises face significant financial challenges when venturing into international markets from hubs such as Blantyre Commercial Centre. This study examines the multifaceted financial barriers that impede SMEs' ability to compete effectively in global trade. This study employs a mixed-methods approach, incorporating quantitative data analysis from SME financial records and qualitative insights gathered through interviews with key stakeholders, including SME owners, financial institutions, and government officials. The study focuses on identifying and analyzing the primary financial challenges encountered by SMEs in Blantyre, Malawi, including limited access to finance, high transaction costs, exchange rate volatility, and stringent regulatory environments. Findings reveal that SMEs in Blantyre face substantial hurdles in accessing financing due to high collateral requirements and exorbitant interest rates imposed by traditional financial institutions. Moreover, the high costs associated with currency conversion, international shipping, and compliance with diverse regulatory frameworks amplify the financial burden on SMEs, constraining their capacity for international expansion and competitiveness. The study underscores the urgent need for tailored financial solutions and supportive policies to address these challenges effectively. Recommendations include developing specialized financial products that cater to SME needs, negotiating preferential trade agreements to reduce transaction costs, and enhancing SME capacity in financial risk management and regulatory compliance. By addressing these financial barriers, stakeholders can foster a more conducive environment for SME growth and internationalization in Blantyre Commercial Centre, thereby contributing to sustainable economic development and inclusive prosperity in Malawi and Central Africa.

Исследования интернационализации МСП в России: онтология предметной области и тематический анализ

The main purpose of the study is to systematize the existing knowledge and determine future direction of development of the field of internationalization of small and medium-sized enterprises (SMEs) in the Russian scientific literature. This study is a semi-systematic review of the literature on the field of SME internationalization. For the analysis of publications from Russian high-ranking journals from 2010 to 2022 thematic analysis is used in conjunction with content analysis. As a result of analysis dynamic of publication activity, main journals published articles on the analyzed field, used methods, geographical coverage and raised topics were determined. At the discussion proposals were put forward for the future directions for the development of the field of internationalization of SMEs. This study is the first literature review that systematizes the results of studies on the SMEs internationalization published exclusively in the Russian scientific literature. We hope that this work will become a starting point for the emergence of qualitatively new research and development of the field of SMEs internationalization.

Digital transformation and SME internationalisation: unravelling the moderated-mediation role of digital capabilities, digital resilience and digital maturity

PurposeThis study has two main objectives. First, to examine the indirect effects of digital platform capability and digital resilience on digital transformation (DT) outcomes for small- and medium-sized enterprises (SMEs), and second, to investigate how digital business model maturity influences these indirect effects.Design/methodology/approachThe study adopts a quantitative design and collects data through a self-reporting survey from individuals in the technological industries. The Partial Least Squares-Structural Equation Modelling (PLS-SEM) and PLS multi-group analysis examine the measurement and structural models and the significance of differences in indirect paths based on the digital business model maturity level, serving as a moderator.FindingsThe findings of this study provide valuable insights into the internationalisation of digital SMEs. They indicate that digital platform capability and resilience fully mediate, connecting digital resources to SME growth. The study also confirms the digital business model maturity’s positive and significant moderating effect on these indirect relationships.Originality/valueThis research contributes to the existing literature by focusing on the international outcomes of platform ecosystems in developing markets. It explores how digital platform capability and resilience support the digital transformation of SMEs, considering their vulnerability due to their small size. The study also fills a research gap by investigating the relationship between big data, digital leadership and the international growth of digital platforms. Lastly, it explores the role of digital maturity in the relationships between antecedents, determinants and outcomes of digitalisation.

Hybrid business offerings in small internationalisers: a mixed-method analysis of internal capabilities through hesitant fuzzy information

PurposeIn this research, the initial list of internal capabilities in small and medium-sized enterprises (SMEs) leading to success in international markets has been extracted. Then, the most relevant capabilities to international SMEs under servitisation and hybrid offerings have been screened. Next, the selected capabilities have been classified, and ultimately the relationship amongst the capabilities has been analysed. The conceptual model for SMEs participating in international markets with hybrid offerings has been illustrated.Design/methodology/approachA literature review has been employed to extract the initial list of internal capabilities to address the research objectives. Then, a novel hesitant fuzzy Delphi (HFD) method has been developed to select the most relevant capabilities for SMEs for hybrid offerings in international markets by using the experts opinions. Subsequently, a novel hesitant fuzzy interpretive structural modelling (HFISM) has been developed to classify the capabilities, design a level-based conceptual model and present the relationship amongst the prominent capabilities.FindingsAfter the literature review, sixteen internal capabilities leading to success in the international market via hybrid offerings have been extracted. Then, eight selected capabilities were chosen for further investigation by applying 15 expert opinions and via the HFD approach. According to HFISM results, a level-based conceptual model was emanated, and “ability to take advantage of international opportunities”, “financial strength”, “technology level” and “efficient innovation management” were considered as the most fundamental capabilities resulting in successful hybrid offerings in international markets.Originality/valueAlongside the multi-layer decision-making approach developed in this manuscript to analyse the internal capabilities roles in hybrid offering success towards international markets, to the best knowledge of the authors, the hesitant fuzzy approaches developed in this article have not been previously presented by any other scholar. A novel HFD approach has been designed for consensus amongst the experts under uncertain circumstances. Furthermore, a novel HFISM has been suggested and employed in this research to comprehend the relationship amongst the internal capabilities.

Beyond the International Entrepreneurial Orientation–International Performance Nexus: Early or Late Internationalisation of SMEs?

Currently, knowledge around the role of international entrepreneurial orientation (IEO) on different types of internationalisation is limited. This study aims to unveil whether and how IEO can improve international performance by focusing on the model adopted in the internationalisation process (a traditional versus born global model). Data were collected from 221 internationalised French small and medium-sized enterprises (SMEs) and analysed using a structural equation model. The results highlight that IEO had a significant positive effect on both international economic performance and export turnover for born globals, but not older firms. When we consider the IEO subdimensions, the findings show a stronger positive impact of both international proactiveness and innovativeness on the number of foreign markets and on export turnover for born globals. The study guides international SME managers on why and how they should adjust the IEO of their firms according to their internationalisation models to achieve superior performance internationally.

Causal foreign market selection and effectual entry decision-making: The mediating role of collaboration to enhance international performance

Foreign market selection and entry are important decisions for internationalizing small and medium-sized enterprises (SMEs) because they involve uncertainty, and influence performance. While it is inherent in effectual foreign market entry (FME) decision-making to rely on international partners and relationships to develop international markets, causal foreign market selection and business relationships/networks have frequently been presented as alternative ways to expand abroad. We conceive SMEs’ foreign market selection and entry as international business decisions and build on causal and effectual logic, and business network theory, to propose a model explaining SMEs’ international performance. We contribute to international business and SME literature by uncovering two different paths (causal and effectual) to FME collaboration and international performance. FME collaboration mediates the relation between causal foreign market selection and effectual entry decision-making and international performance. Our theoretical explanation for the mediating mechanism through which international performance can be enhanced is the network approach.