Internationalization Of Small And Medium Enterprises Research Articles

Potential, Challenges and Prospects: Internationalization of Small and Medium Enterprises (SMEs) in Malang Raya

This research aims to investigate issues related to the phenomenon of internationalization of SMEs in Malang Raya, analyze the potential and challenges faced, and formulate future prospects. The method used in this research is qualitative phenomenology. The results of this research are that internationalization has become an important strategy for Small and Medium Enterprises (SMEs) in various parts of the world, including in Malang Raya. Malang Raya, with its rapidly growing economic potential and product diversity, offers great opportunities for SMEs to expand their market reach to an international level. However, to achieve success in internationalization, SMEs in Malang Raya are faced with various challenges, including capital issues, human resource management, technology and market access.
 

Digital resilience in the internationalization of small and medium companies: how does it work?

Purpose Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for internationalization purposes. However, less is known about the specific mechanisms by which this can be achieved. Specifically, we focus on how SMEs can face the international environment, leveraging digital technologies and thanks to their intellectual capital (IC).Design/methodology/approach We analyze the relationship between digital technologies and the internationalization of SMEs, exploring the mediating role of IC in its three dimensions: human, relational and innovation capital, and assessing the possible moderating effects posed by international institutional conditions, specifically the Sino-US trade frictions. The relationships are tested using a sample of companies listed on China’s A-share Growth Enterprise Market (GEM) from 2010 to 2021.Findings Digital technologies help to internationalize SMEs. However, this positive relationship is affected (mediated) by the presence of an already consolidated IC. In addition, the institutional conditions of the international market, such as the Sino-US trade friction, moderate the components of IC differently. Specifically, the overall mediating effect of human and relational capital is boosted, while this does not happen for innovation capital.Originality/value First, this study contributes to the literature on organizational resilience, especially digital resilience, confirming its validity in the context of internationalization and, in particular, those processes adopted by SMEs. Second, we clarify the mechanisms through which digital technologies exert their impact on the process of internationalization and in particular the prominent necessity of having IC. Third, our conclusions enrich the understanding of how IC components react to turbulence in international markets.

Reconfiguring FDI dependency: SMEs as emerging stakeholders in an advanced peripheral export-led growth model

Political economy scholarship on Eastern European countries identifies their export-led growth models as dependent on foreign direct investors (FDI). This paper argues that small and medium enterprises (SMEs) are another important cohort of exporters for at least some of these countries. We attribute the success of exporting SMEs to the rise of new technologies and production processes, which have allowed economic agents from peripheral countries to engage with global value chains and international business-to-business trade directly, rather than via FDI. We empirically draw on an in-depth case study of Serbia, combining macroeconomic analysis and 145 interviews with exporting SMEs. The country made a notable switch from consumption- to export-led growth in the aftermath of the 2008 crisis, despite lagging in FDI attraction. To address this puzzle, we show that internationalization of SMEs became an additional driver of the country’s exports. Then examining how these exporters have internationalized, we find that firm co-location is not a main source of knowledge exchange for them. Instead, they emphasize the importance of drawing upon translocal sources of knowledge exchange for international competitiveness. Using SME owners’ networks abroad, immigration experiences, clients from online platforms, and contacts from outsourcing opportunities has provided them with the knowledge needed to become innovative, and to repurpose the old socialist industrial resources they had at their disposal. Since exporting SMEs and their multi-level agency is an empirically under-researched phenomenon in the region, future studies on peripheral export-led growth models should explore economic and political implications of this growth coalition further.

Internationalization of SMEs in a Developing Economy: Empirical Evidence from SMEs in the Western Province, Sri Lanka

Small and medium enterprises (SMEs) are critical to Sri Lanka’s economy, but their potential for internationalization remains underexplored. This study aims to identify the various antecedents of internationalization and the impact of identified antecedents on the internationalization of Sri Lankan SMEs. This study was conducted following a quantitative approach. Data were collected from 250 SMEs currently engaged in international business activities and located in the Western Province of Sri Lanka. Correlation analysis and multiple regression analysis were performed to test the hypothesis after ensuring the reliability and validity of the measurement items. The results of this study found that marketing and networking capabilities, among others, significantly influence the internationalization of SMEs. In addition, the study discovered that human capital, managerial capabilities, innovation capabilities, marketing capabilities, networking capabilities, financial capabilities and technological capabilities jointly influence the internationalization of Sri Lankan SMEs. The results of this study provide better insights for managers and owners to capitalize more on marketing capabilities and networking capabilities to achieve synergies by collaborating with local and international partners. In addition, study results benefit policymakers in formulating better policies to support SMEs in finding new markets and making information available about foreign markets to better develop their marketing and networking strategies.

Internationalization of SMEs: SLR (Systematic Literature Review)

This article aims to provide a systematic review of the literature on the current state of research on highly diverse and collaborative and internationalization of small and medium enterprises (SMEs). We analyze the processes that affect the internationalization of SMEs. Additionally, highlighting the limitations of the literature, especially in terms of theoretical fragmentation; existing theories are deployed and illustrated but are rarely extended in a way that significantly informs subsequent work. With this, we highlight the need for a more rigorous and empirically informed exploration of contextual effects that considers the consequences of development in global economic ecosystems. From the results of a review of several literatures, it shows that there is an internationalization theory that tries to analyze, process, and produce results. Because in the era of globalization, small and medium companies see internationalization activities as a great opportunity to progress and develop.

Women entrepreneurship in the internationalization of SMEs: a bibliometric analysis for future research directions

PurposeThis study aims to systematically review papers on women’s entrepreneurship in the internationalization of small and medium enterprises (SMEs) by examining the research profile (i.e. publication trends, publishers, domain and quality of journals, methodologies and units of analysis and regional classifications), internationalization entry modes and the theories underpinning, key variables using AMO framework (i.e. antecedents, mediators, moderators and outcomes) and suggestions for potential future studies.Design/methodology/approachThis study used bibliometric analysis by selecting 62 relevant papers from 3,016 papers collected from the Web of Science, Scopus, Google Scholar and EBSCO databases. Content analysis was conducted to identify key research issues and gaps, which were then mapped on an AMO framework to address potential future research.FindingsThis study found that the number of papers published during the period 1994–September 2022 fluctuated, indicating an increasing trend of women’s entrepreneurship research in the internationalization of SMEs being published in various reputable journals by well-known publishers. This study also found several alternatives of internationalization entry modes, although export is still the most widely used alternative. Various theories that underlie this research include internationalization theory, resource-based theory, feminist theory and international entrepreneurship. This study proposes a future research framework on women’s entrepreneurship in the internationalization of SMEs: AMO.Originality/valueThis study contributes to the intersection of gender-focused international business and entrepreneurship domains. This study proposes a conceptual model of women’s entrepreneurship in internationalization of SMEs by mapping the antecedents, mediators/moderators and outcomes and offers promising opportunities for future research directions.

On stochastic aspects of impact modeling of the innovation incentive system and business internationalization: evidence from Portuguese SMEs

Multivariate normal distribution is base for many statistical techniques, including ordinary least square inference. Here we show that in order to make research on Internationalization of Companies, more flexible approach is needed, namely partial least squares (PLS). It is a nonparametric technique, used in Structural Equation Modeling (SEM), which makes no distributional assumptions and also may be applied with small sample sizes. In this study we discuss on regularity conditions for PLS from the perspective of semi-continuous covariance which fills the gap in the current studies. The stochastic aspects, especially those related to usage of PLS-SEM, can be well integrated to the topologically grounded regression, where jumps in the covariances can occur. The purpose of the research is to analyze and understand the impact of the Incentive System (IS) for Innovation, within the scope of the National Strategic Reference Framework (QREN) 2014-2020, on the Internationalization of Portuguese Small and Medium Enterprises (SMEs). We study stochastic aspects of theoretical model which aggregates the variables Product Innovation, Marketing Innovation, Organizational Innovation and Working Conditions as determinants of Internationalization of Companies. Data were collected based on a quantitative methodology, through a self-completion questionnaire using the Likert psychometric scale, which registered 120 participants. Organizational Innovation (exogenous latent construct) and Product Innovation have shown a statistically significant indirect effect on the Internationalization of Companies (endogenous latent construct) through Marketing Innovation. The latter has a direct effect on the Internationalization (target construct). However, Working Conditions has the greatest impact on Internationalization, meaning that measures such as increasing wages, decreasing the use of temporary work and precarious work conversion into labor effective relations have a very relevant direct effect on the Internationalization of Portuguese SMEs.

TOPIC MODELING: THE USE OF MACHINE LEARNING AND REFERENCE MANAGEMENT SYSTEMS IN THE AREA OF INTERNATIONALIZATION OF SMALL AND MEDIUM ENTERPRISES (SMES)

The objective of this paper is to find new trends in the literature using machine learning and reference management systems within the theme of the Internationalization of Small and Medium Enterprises (SMEs). With help of topic modeling software 857 articles on the topic "Internationalization of SMEs from 2012 to 2021 were analyzed and ranked (citation index) through Endnote® library management systems. The search was focused only on the fields of social science and management. 85 documents were shortlisted from the original cluster to proceed with the text mining. Results show promising areas of research within the Internationalization of SMEs. Stand-out topics include Resource-based Theory, Dynamics Capabilities, International Entrepreneurship, and Ambidexterity among others.
 Endnote® Subject Bibliography found the most popular words and topics in the original database. Results showed that using Endnote® and MALLET topic modeling tool it is possible to analyze large amounts of publications and find new trends within a specific field. However, MALLET software needs experts in the field to identify and translate results into meaningful ideas. Endnote® seems to have a higher level of sophistication and a better visual interface, but among the disadvantages are the price of the tool and that it works better with their libraries or partner journals.

Accelerated internationalization of SMEs and microfoundations of dynamic capabilities: towards an integrated conceptual framework

PurposeStriving for growth since their early stages, many small and medium enterprises (SMEs) are increasingly adopting an entrepreneurial behavior based on a rapid and early international expansion. Although some extant research have been done on the dynamic capabilities of SMEs’ accelerated internationalization–born global (BG) SMEs, no study was, to the best of the authors’ knowledge, carried on the microfoundations underlying this phenomenon. This paper aims to fill this gap in the literature and contribute to the growing theory development of SME’s microfoundations.Design/methodology/approachThis paper proposes an integrated conceptual framework to better identify the microfoundations that influence born global SMEs internationalization by integrating individual, structural and processual – the microfoundations approach within the dynamic capabilities of sensing, seizing and reconfiguring.FindingsOur propositions argue that born global SMEs are characterized by dynamic capabilities based on a combination of some individual (manager’s human and social capital, such as its personal orientation, experiences, cognition and intuition), process (market learning, technology development) and structural (agility, communication/coordination) factors that helps a lot in the acceleration of the internationalization process.Research limitations/implicationsEmpirical study should be done to enrich the conceptual material.Practical implicationsTo identify some international opportunities, companies should rely on the entrepreneurial orientation of its managers, its experience and network as well as the market-related learning and technological processes. The managerial cognition is important to seize opportunities while the manager’s human capital is needed to reconfigure resources while internationalizing rapidly.Social implicationsThis research shows that individual attributes are important but insufficient to accelerate the internationalization process. Some individual characteristics are more useful in sensing international opportunities rapidly, such as manager’s international entrepreneurial, past experience and network, However, the managerial cognition is important to seize opportunities, whereas the manager’s human capital is needed to reconfigure resources while internationalizing rapidly.Originality/valueBorn global firms must develop several dynamic capabilities to foster their accelerated early international development. This paper gives insights about the individual, structural and processual of sensing international opportunities, seizing and reconfiguring resources and competencies for born globals.

Dual Embedding as EPO Strategy in Creatively Connecting Cultures to Support SME Internationalization

Although small and medium enterprises (SME) from one country have dependencies on state sponsored export promotion organizations (EPO) for internationalization, EPOs are limited by bureaucracy and protocols to offer adequate support beyond a few generalized ones. Extant research on EPOs contribution in SME internationalization remains inconclusive. We examine how an EPO can identify and address performance challenges through a longitudinal study of the French Embassy’s Trade Mission in Kazakhstan. Our analysis reveals how the French EPO navigated the challenge of cultural distance and structural rigidity through a strategy process of organizational transformation with dual embedding, negotiated reformulating and creative combining as constituents. The recursive process led to refining services toward improved SME internationalization. Our study extends EPO research to corporate entrepreneurship and strategy process.

Institutional and organizational capabilities as drivers of internationalisation: Evidence from emerging economy SMEs

Internationalisation, the notion of cross border business, has become one of the key strategies for growth for small and medium enterprises (SMEs) in developing countries in recent years. Although many SMEs have used internationalisation strategies, there remains a gap of understanding the relative importance of factors influencing SMEs internationalisation particularly from developing countries perspectives. Drawing on the Resource Based View of the firm (RBV) theory, this research develops and validates the dimensions and sub-dimensions of the drivers of internationalisation. The study further identifies the relative importance of these dimensions from a developing country context. The study used a questionnaire survey to collect primary data from 212 Bangladeshi SMEs based on area wise cluster sampling. This study used partial least square based structural model (PLS-SEM) to assess the key drivers for foreign market entry by developing country SMEs. The findings confirm that the drivers of internationalisation represent a hierarchical construct consisting of three primary and eight sub-dimensions. The study suggests that SME internationalisation in a developing country is contingent upon two categories of capabilities: critical organisational capabilities or resources (linked to internal processes largely associated with human resources) and critical institutional capabilities (associated with state level provision and the cultural fabric).

The Internationalization of SMEs: Motives and Barriers

This study answers questions about the motives and barriers to the internationalization of small and medium enterprises (SMEs). A literature review was conducted to identify relevant research findings on the motives and barriers to the internationalization of SMEs. The finding of the study is consistent with the Resource-Sector Model of SME Internationalization, that the internationalization motives of SMEs are classified into internal motives, namely increasing profits, availability of resources, creating market power, and business growth. While external motives are limited domestic market, competition, and proximity to customers and suppliers. In addition, the study shows that resource strength and owner-manager competence are the driving factors for the internationalization of SMEs. SMEs entering the international market will face internal barriers: human resources, product quality, and financial resources, and external barriers: business environment, government barriers, and socio-cultural barriers. This study contributes to providing new insights into consideration of opportunities and threats for the internationalization of SMEs.

Do Psychic Distance, International Experience and Risk-Taking Ability Matter for Indonesian SMEs in the Distant Market?

The discussion of internationalization small and medium enterprises (SMEs) internationalization is salient in international business literature. In entering and performing in distant international markets, SMEs face more significant challenges than larger firms. This research aims to analyze the effects of psychic distance, international experience, and risk-taking ability among Indonesian SMEs internationalization in a distant market. This research was carried out with a survey involving 76 SMEs in Indonesia, and then the data were analyzed using multiple regression. The result shows that although the regression model is a good fit for the data, only international experience has a significant effect. This paper contributes by providing empirical evidence of (a) factors affecting the internationalization of SMEs of an emerging market in a distant market and (b) the role of psychic distance on internationalization in the context of SMEs.

FIRM RESOURCES FOR INTERNATIONALIZATION OF SMES FROM EMERGING COUNTRIES: A MULTIMETHOD STUDY

ABSTRACT Purpose: This article investigates and classifies firm resources for the internationalization of small and medium enterprises (SMEs) from emerging countries. Originality/value: SMEs from emerging countries in global markets evidence their more restricted access to resources for internationalization. The mainstream international business literature classifies firm’s resources identified in large companies from developed economies. This research classifies firms’ internationalization resources located in different emerging countries based on a systematic literature review (SLR) and interviews. This paper contributes to the theoretical development about the internationalization of SMEs from emerging countries, indicating the importance of organizational resources in this process. Design/methodology/approach: This paper presents an exploratory research developed in two stages: a SLR on emerging countries and interviews with experts, institutions, and SMEs about the Brazilian context. Bibliographic research and an interview with semi-structured script were adopted as data collection techniques. Interviews were analyzed with NVivo software using content analysis technique and providing categorization of resources. Findings: Up to 2016, 15 works mentioned resources for the internationalization of SMEs from emerging countries and seven were done in Asia. We identified 72 resources in ten emerging countries. Organizational resources predominate. The use of financial resources in Brazil contradicts the trend in other emerging countries. More tangible resources seem less strategic for SMEs’ internationalization from emerging countries when compared to more intangible resources, as organizational ones.

The Role of Internationalization Orientation in Mediating the Relationship between Capabilities and Intention to Export: An Empirical Analysis on SMEs

Small and Medium Enterprises (SMEs) have a strategic role in the Indonesia's economy; however, they have a low contribution on the national export. Studying on SMEs internationalization becomes important to understand factors that influence them to go international. Using resource-based view perspective, the objective of study is to investigate how the organizational capabilities influence the intention of SMEs to export through internationalization orientation. A model was developed that explained the impact of personnel management, product development, and production capabilities on internationalization orientation, and eventually affect the export intention. Primary data were collected through a field survey by distributing structured questionnaires to SMEs over three months, resulting 86 eligible responses. These empirical data were analyzed to validate proposed model using partial least square - structural equation modeling technique (PLS-SEM). The results indicated that internationalization orientation mediated partially the effect of personnel management and product development capabilities on SMEs intention to export. The other finding displayed the unexpected result that there was insignificant influence of production capabilities on internationalization orientation and export intention. This study suggests that to increase the intention of SEMs to export, the firms must have capabilities in managing their personnel and developing unique and innovative product consistently.

Internationalisation of rural small‐and‐medium enterprises from Nigeria: Examining social and organisational impact

AbstractDrawing on behavioural theory of the firm, this study examines internationalisation of rural small‐and‐medium enterprises (SMEs) in Nigeria and its impacts on social and organisational development. To examine how SME internationalisation affects societal and organisational development, the study collects cross‐sectional data using a structured questionnaire from 304 rural SMEs drawn from several sectors in Nigeria. Applying a partial least square based structural equation modelling, we tested the social and organisational impact of rural SMEs internationalisation. The results showed that there is a significant positive relationship between societal and organisational performances and internationalisation of SMEs. Both scores were significantly positively correlated with the internationalisation of SMEs in rural Nigeria. The study argues that internationalisation of rural SMEs' reflects on organisational progress and societal progress in terms of improving rural people's life. The findings of the study will act as the reference point to academicians and policymakers by which they could assess how internationalisation of rural SMEs matters for rural people's life and can strive to achieve inclusive and sustainable growth.

Entrepreneurial Mindset: Examining the Contribution of Deliberative and Implemental Mindsets to SME Internationalization

The purpose of this study was to establish the contribution of deliberative mindset and implemental mindset to SME (small and medium enterprises) internationalization. This study employed cross-sectional and correlational research designs. Data were collected through a questionnaire survey of exporting SME owners and managers. Data was analyzed with the help of Statistical Package for Social Sciences (SPSS) and SmartPLS. Results suggest that implemental mindset significantly contributes to variances in SME internationalization unlike deliberative mindset. The findings in this study imply that increased levels of internationalization among SMEs in a developing country like Uganda can be achieved by those managers and owners who possess an implemental mindset. This study provides initial empirical evidence of the contribution of deliberative and implemental mindsets to SME internationalization using evidence from Uganda – a developing country.

Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

SMEs’ competitiveness and international trade in the era of Global Value Chains (GVCs) in Tanzania: An assessment and future challenges

International trade continues to play a crucial role in economic transformation in African countries. The rise of Global Value Chains (GVCs) presents opportunities through which international trade can be effectively conducted. GVCs facilitate organization of trade, international production and investment by locating different stages of production process across varied countries. This presents opportunities to integrate Small and Medium Enterprises (SMEs) into global trading systems but also may generate challenges particularly to resource constrained SMEs. Reviewing the challenges for the participation in international trade and possible integration into GVCs by Tanzania’s SMEs, the results show that the major challenges for SMEs internationalization are international marketing related constraints and global competition (69%), supply side constraints (56%), unfriendly investment climate (50%) and financial constraints (37.5%). As such, the role of trade policies remains critical in mitigating some of these challenges through formulating friendly legal and regulatory frameworks, enhancing SMEs productivity by building their managerial and technical capacities, minimizing trade costs, and increasing trade openness. However, given the current global, regional and domestic developments in Tanzania, trade policies need review so as to respond to the changing global trade landscape but also promote policy harmony, coherence and complementarities among varying implementing institutions, deficiency of which is debilitating policy implementation at present

Analisis faktor yang mempengaruhi kinerja UKM di pasar internasional

Small and medium enterprises (SMEs) are currently important players in international trade. Commitment from business actors and wider networks are required to not only penetrate the international market but also to survive and compete at the national and international levels. This study aims to analyze entrepreneurial orientation, network capabilities, and innovation on the performance of SMEs in the international market. This study used a survey method by giving questionnaires and interviews to 75 manufacturing SMEs in the district and city of Madiun. The results of this study indicate that all entrepreneurial orientation variables, network capability, and innovation have positive and significant effects on the performance of SMEs in the international market. This study contributes to the internationalization of SME's literature by analyzing the influence of entrepreneurship orientation, networking capabilities, and innovation on SME performance in international markets, especially for manufacturing companies.