Internationalization Of SMEs Research Articles

The use and knowledge of export promotion programs in the early internationalization of Brazilian SMEs

PurposeThis paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.Design/methodology/approachThe authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).FindingsThe results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.Practical implicationsManagers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.Originality/valueResearch on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.

The Internationalization of Small & Medium Enterprises (SMEs) in Automation Industry of Penang, Malaysia

With the rise of globalization, internationalization of companies has become a new business order, as globally, boundaries are no longer a barrier to firms as they can develop competence to enter international market and gain competitive advantage at global marketplace. The significance of this proposal is by integrating in a single framework the relationship between a pull factor (networking) and push factors (management attitude and entrepreneurial orientation) on the internationalization of SMEs in automation industry as well as testing the moderation effect of marketing characteristics (market attractiveness) on these constructs. This study proposes a research framework that examined the association between networking, management attitude, entrepreneurial orientation and internationalization of SMEs in the automation industry of Penang, Malaysia, with marketing characteristics (market attractiveness) as moderator. Underpinned by the Eclectic Model (OLI Framework) and Network Theory, the proposal examines the function of networking to obtain resources and access market opportunities; the positive management attitude and entrepreneurial orientation of firms as strategic intangible resources, and the marketing characteristics to function as moderator between the predicting and criterion variables. Theoretically, the study investigates empirically the association amongst the three independent variables (networking, management attitude and entrepreneurial orientation) and the dependent variable (internationalization of SMEs). In addition, this study has incorporated a moderating variable (marketing characteristics) into the research model. This proposal was unique in the sense that it is pivoted in SMEs automation industry in Penang, Malaysia. Thus, this proposal will enrich literature on the moderating effect of marketing characteristics (market attractiveness) and the relationship amongst the variables in SMEs automation industrial setting and context. Keywords: internationalization, automation, Small & Medium Enterprise, Penang, Malaysia. DOI: 10.7176/EJBM/13-18-03 Publication date: September 30 th 2021

Do economic freedom, business experience, and firm size affect internationalization speed? Evidence from small firms in Chile, Colombia, and Peru

This paper focuses on SMEs from the Latin American region and aims to build on existing literature on the emergence of the institution-based view in combination with the resource-based view. We contribute to existing literature by extending the application of the aforementioned theories to firms in three under-researched countries in this region. Specifically, we contribute to the extant literature by providing empirical insights on how home country–specific resources and firm-specific resources can affect the internationalization speed of SMEs in Latin American region. In order to achieve our objectives, we empirically examine the role of economic freedom (EF), prior business/international experience, and firm size on speed of internationalization. We use a dataset of Latin American SMEs, employing Poisson and negative binomial (NB) regression techniques. Our data cover three main Latin American Pacific Rim economies—Chile, Colombia, and Peru—with similar economic specializations, geographical borders, and economic growth dynamics. We find that (1) some parts of Economic Freedom Index (EFI) accelerate the speed of internationalization, whereas other areas slow it down or have no effect. Specifically, the closer to full EF the home country is in terms of regulations and government, the shorter the time to internationalize. (2) More experienced management teams are more likely to translate their knowledge into faster international market entry, but this pays off only for larger sized SMEs in contrast to smaller ones due to complementarities between managerial resources and physical, financial, and organizational resources. (3) Finally, industry, firm location, and country destination can only weakly explain the speed of internationalization. The findings add to the literature on SME internationalization in emerging markets and point towards potential policies to stimulate growth by SMEs in these markets.

Delimitation of the experience factor in the decision to select international markets by Spanish SMEs: The influence of psychic distance

The internationalization of SMEs is generally characterized by a progressive multi-stage process, in which organizations gradually acquire knowledge and skills that strengthen their commitment to the outside world. International experience – a form of autonomous accumulation of know-how that allows the understanding of potential markets – influences the decision-making process for selecting export markets. Although gradual acquisition of international experience allows an increase in export activity in more physically distant markets, this gradualist postulate does not have an indefinite validity. This paper analyzes the limits of this international experience in terms of psychic distance, examining whether those SMEs that have obtained enough international experience to develop markets of greater complexity tend to select more complex, i.e., more psychically distant, countries. The findings generally support the idea that the relationship between international experience and psychically distant markets ceases when SMEs have obtained enough international experience, after which it is the objectives of a strictly business nature which condition the decision to select potential markets. For these reasons, when the organization has obtained enough skills and international experience to develop markets of greater complexity, the managers choose to select more complex i.e., more psychically distant, countries.

Is small and medium-sized beautiful? The structure and evolution of family SMEs research

PurposeThe field of scientific research on small and medium-sized family businesses has been growing exponentially and the aim of this paper is to systematize the body of knowledge to develop an agenda for the future.Design/methodology/approachAdopting comparative bibliometric analyses on 155 articles (from 1989 until 2018) the authors provide a systematic assessment of the scientific research about small family firms, unveiling the structure and evolution of the field. Bibliographic coupling, co-citation analysis and co-occurrence analysis are adopted to identify the most influential studies and themes.FindingsFour clusters of research are reviewed: succession in family SMEs, performances of family SMEs, internationalization of family SMEs and organizational culture of family SMEs.Originality/valueThis paper contributes to the field of family SMEs by providing a systematic analysis of the scientific knowledge. Reviewing those clusters allows to providing avenues and reflections for future research and further practice.

Theoretical Features of SME Internationalization

Theoretical Features of SME Internationalization

SOCIAL CAPITAL AND INTERNATIONALIZATION OF FAMILY SMEs IN CAMPECHE, MEXICO: A QUALITATIVE COMPARATIVE ANALYSIS

Theoretical framework – Our review examines the relational approach to internationalization and the strategic approach to family businesses. It covers three types of social capital, market orientation, and international business orientation. Design/methodology/approach – This is a fuzzy-set qualitative case study. Seven family SMEs from the fishing sector in Campeche, Mexico, compose the sample. Findings – Linking is determining factor for internationalization. The cessation of internationalization occurs in family businesses because of a lack of international entrepreneurship, the family's presence, and a lack of vertical links. Practical & social implications – This study expands the research on internationalization in family SMEs in an emerging economy context, empirically demonstrating how the analyzed exporters' social capital links directly influence their activity. For business professionals, the challenge is to manage their links abroad. Our results show that links play a crucial role in internationalization in this context. Exporters that have not internationalized are advised to strengthen their connections with key government institutions. Originality/value – We show that there is more than one optimal way for family SMEs to succeed in internationalization. Research on the internationalization of family businesses in Mexico is very scarce. Thus, this study responds to calls for further research on the internationalization of SMEs in emerging economies.

Context-specific micro-foundations and successful SME internationalisation in emerging markets: A mixed-method analysis of managerial resources and dynamic capabilities

Building on the resource-based view, this study aims to address the scant research on the context-specific micro-foundations that impact on internationalisation of SMEs in emerging markets. Therefore, the paper explores managerial resources and dynamic capabilities in three categories of international networking, vision, and experience and competence. In this regard, we employ a mixed-method analysis and focus on Iran as representative of a low supportive institutional context for SME internationalisation belongs to emerging markets. Hence, in qualitative analysis, we utilise multiple case study and conduct ten interviews, which led to the identification of fourteen important managerial resources and capabilities. This is followed by expert-based decision-making approaches, taking advantage of interpretive structural modelling (ISM) and Matrix-based Multiplication Applied to a Classification (MICMAC), which contributed to investigation the relative function of identified factors as well as proposing a conceptual framework for the inter- and cross-relationships among explored drivers in three targeted categories and provides theoretical and practical suggestions.

Impact of Individual-level Antecedents on SME Internationalization: A Methodological Review

Impact of Individual-level Antecedents on SME Internationalization: A Methodological Review

Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization

PurposeThe purpose of this study is to explore the relationship between experiential knowledge of foreign markets, institutional word of mouth (WOM) and small and medium enterprises’ (SMEs’) internationalization. Specifically, it aims to provide explanations of what and how cross-border experiential knowledge can be institutionally transmitted for SMEs’ internationalization purposes via WOM.Design/methodology/approachAn exploratory approach was adopted within the phenomenological/qualitative research tradition. The data collection process was conducted through 23 semi-structured interviews with founders and chief executive officers of Saudi international SMEs.FindingsThe study’s findings confirm that SMEs seeking productive opportunities in the international market could improve their internationalization experience if they made proper use of institutional WOM as a catalyst for inter-firm learning. This concerns SMEs from emerging countries in particular as they are usually in a bid to legitimatize their presence in foreign markets.Originality/valueThe triadic relationship between experiential knowledge, institutional WOM and internationalization has not been previously researched. The current study, therefore, clearly adds value to the concept of WOM from three dimensions: institutionalization, cross-borderity and SMEs’ internationalization.

Networking, Personality and Institutional Factors on SMEs Internationalization Process: A Literature-Based View

SMEs are one of the economic entities that form the backbone of the economy in many countries. SMEs contribute substantial GDP to the country and are one of the solutions for efforts to provide employment and economic performance. However, so far SMEs have only been able to serve the domestic market, even though they have great potential to enter the international market. Not many SMEs are brave and motivated to do pivot businesses by utilizing digital technology and the era of openness to expanding overseas markets. Some many factors are suspected to be the cause. Through the literature review method, this paper seeks to identify the factors that influence SMEs to go international, primarily from the point of view of individual factors and organizational factors. From the results of previous research conducted in many countries, it was found that the individual factors and organizational factors contributed significantly to the decision making of SMEs to Go International.

RAPID INTERNATIONALISATION: THE CRITICAL ROLE OF INTERNAL AND EXTERNAL FACTORS ON CAPABILITIES AND BUSINESS STRATEGY

Grounded from resource-based view, network approach perspective, strategic behaviour theory, innovation theory and capabilities theory, this study proposed a model for rapid internationalisation of SMEs in Malaysia. In-depth interviews were conducted with selected firms in Malaysia to explore and identify the factors contributing to the firms' capabilities, business strategy and rapid internationalisation. This model provides further insight into the factors that leads them to rapid internationalisation. This paper found that technology, firm orientation, networking and founder's background and entrepreneurial characteristics as internal factors together with industry trends and environment are critical determinants of capabilities that lead to business strategy and rapid internationalisation. Apart from that, it was found that innovation plays a crucial role in IT based born global firms; it may not apply to all the firms. One of the firms interviewed has chosen creativity as their key role factor instead of innovation. Lastly, firms that do not require large capital are better off by avoiding external fund to reduce unnecessary financial risk.
 
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The Role of Network Ties on SMEs Internationalization Process in the Developing Countries Emerging Markets: A Comparison between Mongolia, China, and Malaysia

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.

Market-oriented business model for SMEs' disruptive innovations internationalization

PurposeThe aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.Design/methodology/approachBased on market orientation literature, an MOBM is developed and assessed through collaboration among companies, researchers and networking partners. For the evaluation of the model, qualitative data was collected through workshops, interviews and participatory observations at four case SMEs. Methodologically, the implementation of the MOBM consists of a systematic knowledge development process by following four work packages to support the companies' market-oriented internationalization.FindingsThe results show that SMEs face internal barriers to developing innovativeness that hinder them from creating effective disruptive innovation for the international buyer chain. The study finds that SMEs need to work with an MOBM for developing market intelligence within the organization and seek external support for entering the international market.Practical implicationsThe methodological strength allows application, evaluation and modification of the MOBM in close collaboration with the SMEs that directly benefit from its implementation. Modifying the principles of market orientation by practical application, SMEs can apply the MOBM to analyze their internationalization capacity for high-tech disruptive innovations.Originality/valueThis article contributes to new thinking by introducing market orientation to SMEs' internationalization of disruptive innovation. The study highlights the less researched field of disruptive innovation by developing the MOBM to deal with SMEs' internationalization.

‘Keep Your Friends Close’: The Role of Informality in the Management of Unequal-sized Collaboration for NZ SMEs

ABSTRACT Due to knowledge and resource constraints, collaboration is often part of the SME internationalization process. Often, these collaborations involve a larger partner organization. Perceptions of the SME in collaboration are understudied, particularly in relation to unequal size. This research presents case studies of three New Zealand SMEs who engage in international collaboration with larger partners. Although there are benefits gained in collaborating with larger firms, SMEs face challenges managing these partnerships. However, it the strategic use of informal relationships helped to overcome the challenges of size difference. These aspects of informal relationship management represent a theoretical contribution.

Internationalisation of Indian SMEs: problems and prospects

The purpose of this research is to find out the factors that initiate and hinder the process of internationalisation of small and medium enterprises with reference to state of Punjab in India. The factors which initiate internationalisation of Punjab SMEs were divided into internal and external factors. The data was collected through questionnaire from 100 SME exporters from Punjab. The firms were selected from the top five industries which contributed maximum to the exports. With the help factor analysis and multiple regression technique, the findings indicate that the factors initiating internationalisation are international direction, resource capability, managerial competencies, technology Up gradation, competitive industry, international networks and government support whereas, the barriers faced were operational and governmental problems. The results of the study provide us with various factors which should be kept in mind while entering into foreign markets and will help the policy makers to make strategies regarding internationalisation of SMEs.

Cultural intelligence and the internationalisation of SMEs: a study of the manufacturing sector in Egypt

Cultural intelligence and the internationalisation of SMEs: a study of the manufacturing sector in Egypt

Interactive Sensemaking in the SME Internationalization Process

Internationalization for SMEs is often seen as a question of organization. However, the organizing of international activities and interactive sensemaking (seen as making sense, giving sense, and deriving sense) can be seen as an interrelated process. This paper focuses on clarifying how inter-organizational interactions affect actors' knowledge and learning outcomes in the SME internationalization process. By leveraging multiple case data over time, the empirical and theoretical framework contributes to an overall understanding of interactive sensemaking. Seven SMEs were followed over one year while participating in an internationalization event facilitated by clusters and networks with a healthcare and welfare focus. The first conclusion drawn is that interactive sensemaking is affected through bonding activities in the SME managers' relations. Secondly, bonding and bridging are both preconditions to giving sense and taking action. Therefore, sensemaking and organizing the SMEs internationalization networks are two interrelated processes.

Selected support programmes for the internationalisation of SMES (based on the example of the UK)

Selected support programmes for the internationalisation of SMES (based on the example of the UK)

Survival in the agri-food industry: internationalisation and manager gender in Spanish SMEs

An analysis is presented of the survival patterns of both small and medium-sized firms in Spain, as well as the effects of the internationalisation of the firm and manager gender on firm survival. The study aims to shed some light from a gender perspective on the field of SME internationalisation and SME performance, examining the role of manager gender as a key determinant of business survival. The data comprise a sample of 5,095 agri-food SMEs. The Kaplan-Meier method is employed for a univariate analysis of survival, applying a linear regression for multivariate analysis. The results revealed that the SMEs were more likely to survive if internationalised and/or if their managers were women. The findings of this research may help provide a better understanding of the influence of manager gender on the internationalisation process of SMEs, which would assist policymakers in developing relevant and targeted export promotion policies and programmes.