Internationalization Process Of SMEs Research Articles

Dynamics of Network Utilization in Internationalization What SMEs Do in Developing and Developed Countries: A Systematic Literature Review

The study of networks in the internationalization process of SMEs has become an interesting discussion, this condition is because each country has unique dynamics in utilizing existing networks. The results of the analysis of the 20 articles in this study show that being proactive in the network community will strengthen relationships with partners and implementing an alliance strategy will strengthen the position of SMEs in increasing competitiveness and expanding markets. This condition occurs in both developing and developed countries. The dominant factor influencing the speed of the internationalization process is social and business network relations that begin with social ties. Of the 8 articles that discuss networking in the process of internationalization in developed countries (China, Central America, and East America), it shows that the government as an institution that has an important role in the internationalization of SMEs needs to design a framework in the form of policies that encourage the acceleration of various forms of collaboration between businesses. Meanwhile, 12 articles that discuss the process of internationalization in developing countries show that for the expansion and growth of SMEs a social network structure is needed, and the role of ethnic (group) ties in internationalization.

A systematic literature review on SME internationalization: a personality lens

The importance of the individual decision-maker within the internationalization process of SMEs has extensively been acknowledged in the International Entrepreneurship field. Yet, despite this, the current discourse is mainly limited to socio-demographics, and social and human capital, and does not seem to advance towards the influence and role of, e.g., deeper-level personality aspects on the SME’s internationalization process. Findings are scattered across different fields of research and disciplines, making it difficult to build upon existing knowledge. To address this, we execute a Systematic Literature Review focusing on internationalization, SMEs, and personality, with specific attention for deeper-level personality aspects. Our findings reveal a rather young body of literature which uses a behavioral perspective, and can be subdivided into three overarching research themes: Internationalization Behaviors, Internationalization Initiation, and Internationalization Performance. Our thematic analysis and cross-thematic discussion provide a fertile ground for further studies on the entrepreneur’s deeper-level personality aspects in relation to SME internationalization. In the future research section, we recommend the exploration of alternative behavioral theories, and multi-level and holistic approaches to further explore this promising sub-domain.

SMEs Internationalization Process through Brand Awareness and Perceived Quality

The development of technological knowledge of SMEs is increasing, and the dynamics in the global economy had a significant effect on SMEs. SMEs need to expand their market share to expand in international markets. This research examined the effects of brand awareness and perceived quality on the internationalization process of SMEs that were carried out on 367 SMEs in Madura. The research results indicated that the brand awareness variable had no significant effect on the internationalization process of SMEs. The significance value was more significant than 0.05, namely 0.079 > 0.05, and had a smaller tcount than ttable, namely 1.760 < 1.966. Meanwhile, the perceived quality variable had a significant effect on the internationalization process of SMEs because the significance value obtained was smaller than 0.05, namely 0.000 < 0.05, and had a greater tcount than ttable, namely 8.671 > 1.966. The variables of brand awareness and perceived quality simultaneously had a significant effect on the internationalization process of SMEs. The analysis results showed that the magnitude of the effects of brand awareness and perceived quality on the internationalization process of SMEs was only 24.9%. The remaining 75.1% might be affected by variables not mentioned in this research.

SMEs Internationalization Process through Brand Awareness and Perceived Quality

The development of technological knowledge of SMEs is increasing, and the dynamics in the global economy had a significant effect on SMEs. SMEs need to expand their market share to expand in international markets. This research examined the effects of brand awareness and perceived quality on the internationalization process of SMEs that were carried out on 367 SMEs in Madura. The research results indicated that the brand awareness variable had no significant effect on the internationalization process of SMEs. The significance value was more significant than 0.05, namely 0.079 > 0.05, and had a smaller tcount than ttable, namely 1.760 < 1.966. Meanwhile, the perceived quality variable had a significant effect on the internationalization process of SMEs because the significance value obtained was smaller than 0.05, namely 0.000 < 0.05, and had a greater tcount than ttable, namely 8.671 > 1.966. The variables of brand awareness and perceived quality simultaneously had a significant effect on the internationalization process of SMEs. Based on the results of the F-test on the comparison between Fcount > Ftable, the Fcount was 61.817, or more significant than Ftable, 3.01. The analysis results showed that the magnitude of the effects of brand awareness and perceived quality on the internationalization process of SMEs was only 24.9%. The remaining 75.1% might be affected by variables not mentioned in this research.

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.

Role of Technology Transfer, Innovation Strategy and Network: A Conceptual Model of Innovation Network to Facilitate the Internationalization Process of SMEs

The purpose of this research paper is to increase the understanding on how the combination of technology transfer and innovation strategy has become key elements for ensuring the development and growth of SMEs since has enhanced their ability to be part of networks and has facilitated their access to international markets. We see that SMEs can balance their limited resources with careful participation in networks. Indeed most SMEs need to be part of networks to get their innovations and develop special competence on technology transfer and to rapidly access to international markets. Although there exists a well-developed tradition of industrial network research there is a lack of analysis of systematic and empirical models of network relating to the technology transfer and innovation strategy in the context of SMEs’ internationalization. Based on our research framework on theoretical insights from technology transfer’s topic and its extensive concepts of innovation, network and internationalization, we examine how the internationalization process is facilitated by SMEs’ networking capacity. Our findings allowed us to address an empirical study created to develop a systematic conceptual model of an innovation network and propositions regarding the access of SMEs to international markets. This model can be an easy-to-follow innovation model for SMEs when adopting a knowledge-transfer, innovation strategy, and networking approach. This helps to make certain that the important drivers and approaches for the innovative network capacity and internationalization performance of SMEs. These findings have critical implications for entrepreneurs in enhancing their firms in international performance. More specifically, we analyze how SMEs’ membership in networks or clusters stimulates the concrete collaboration with High Education Institutions (HEIs) or Public Research Institutions (PRIs), Governments, and other businesses and contribute to acquire and absorb innovation via different channels of external knowledge influencing SMEs’ behaviours at the international level.

Patterns of internationalisation of Finnish SMEs in Estonia: Preliminary survey results

Objective: The objective of this paper is to look at the patterns of the internationalization process of Finnish SMEs and how it fits the internationalization models. Discussions are based on the interrelated theories of internationalization specifically the Uppsala model, Network approach and Models of International Entrepreneurship. This work also presents an intense analysis of the level of internationalization among SMEs, the mode of entry, motives and barriers for internationalization. Research Design & Methods: The empirical research was carried out in the period of January 2018-August 2018. Data were collected through a mail survey questionnaire and 121 usable responses were received. The data was then analyzed in SPSS software by the cross-tabulation method to achieve the results. Findings: Findings indicate that the majority of Finnish SMEs that started international operations follow a step-by-step approach of internationalization. Exporting was a major mode of entry into foreign markets, capturing market share was the main motive, and lack of market knowledge was a major barrier for internationalization. Contribution & Value Added: It is confirmed that Uppsala, Network and Entrepreneurship models are still valid, and majority of Finnish SMEs follow the systematic internationalization process. This study contributes to the internationalization process of SMEs and calls for further comparative research in other markets to validate the results. It is confirmed that there is no single theory, which explains the internationalization process of SMEs and this work provides the threshold for theory development.

A Correlational Analysis to Assess Major Obstacles Associated with the Internationalization of Saudi Startup Enterprises

Startups’ constant tendency to grow and scale up through internationalization is occasionally collided with a number of barriers in the domains of legalization and regulation, market and customer, environment and competitiveness, information and knowledge, resources and accessibility, and economy and culture. The sharpness of these barriers might intensify when it comes to startups from emerging markets. Consequently, a need for assessing the major obstacles associated with the internationalization of emerging markets’ startups is emphasized. In this regard, a correlational analysis has been used to identify and assess the role of these obstacles in restricting Saudi startup enterprises to operate internationally. A total of 103 participants were included in the data collection process of the study from Saudi startup enterprises. The findings have shown that liability of foreignness, managerial dispute and organizational distrust, and immaturity of home market were the most influential barrier towards internationalization process of SMEs. Coping implications were suggested to mitigate the impact of each barrier and possible avenues for future research in the area of startups’ internationalization were recommended.

Resource Allocation in SME Internationalization: A Portfolio Theory Perspective

Theories of internationalization generally focus on individual market entries, and thus do not explain how entrepreneurs allocate scarce resources between competing opportunities and develop a portfolio of markets over time. This paper argues that concepts associated with modern portfolio theory can be used to analyze how entrepreneurs allocate resources between markets, and thus provide new insights into the internationalization process of SMEs. Data collected from five Canadian small- and medium-sized manufacturing firms are analysed to uncover how entrepreneurs allocate resources to markets, and illustrate how insights about the resulting pattern of internationalization can be drawn from a portfolio perspective.

Internationalization stages of traditional SMEs: Increasing, decreasing and re-increasing commitment to foreign markets

SMEs attempt to accelerate and diversify their international expansion strategies. The purpose of this article is to identify the internationalization stages followed by traditional SMEs to seize global market opportunities. The authors analyze the internationalization paths of five French SMEs operating in traditional manufacturing industries. The empirical study is mainly based on 66 interviews. The findings indicate that the internationalization process of SMEs continues to follow several stages, but that their commitment to foreign markets may increase, decrease and re-increase. The identified stages, which can be triggered by internal and external factors, reflect characteristics of different internationalization models proposed in the literature.

Dynamics, motivations and barriers in internationalisation processes of wineries in Calabria

ABSTRACTThis research has a twofold purpose: to get an insight into the internationalisation process of the wine industry in Calabria (South Italy), a region that has recently started to be credited for high-quality wines, and to conduct an investigation on internationalisation dynamics of Calabrian wineries, on the stimuli that push them into international context and the barriers they face. A qualitative case-study methodology was used following several steps: a theoretical background on SMEs’ internationalisation models was carried out in order to characterise the internationalisation patterns of Calabrian wineries; the Resource Based View (RBV) model was applied to investigate the Calabrian wineries’ leverages; a regulatory/normative approach was adopted in order to analyse the role of institutions and public agencies and how the local culture, values, beliefs and norms affect the international activity; finally, an Entry Mode Matrix was implemented to evaluate the market entry strategies adopted by Calabrian wineries. Findings clearly showed how the internationalisation process of SMEs can be highly context-specific and how a combination of tangible and intangible firms’ resources in interaction with home-based external conditions plays a crucial role in the internationalisation process of Calabrian wineries. [EconLit citations: Q120, Q130].

Export Performance of Indian SMEs in Textile Sector: Role of Knowledge Based Resources

In the highly globalized world, SMEs too are actively participating in international business, expanding their sales of goods and services across borders, to different geographical markets. Process of internationalization requires commitment of additional resource. The resource based theory says that for sustained competitive advantage resources should be valuable, rare, inimitable, and non-substitutable. Resources are scarce. Resources and capabilities can be divided into various categories. This study examines the role of knowledge based resources (technological resources and marketing resources) on export performance of SMEs in the Indian textile sector. Data has been taken from the Prowess data base of Center of Monitoring Indian Economy (CMIE). The results show that marketing resources support export performance. The data also highlights the fact that Indian SMEs are making little investment in R&D. Two highly debated areas, size and age have been taken as control variables. Both these variables support the theory of rapid internationalization and that size does not matter, in today's world. This study not only advances the role of resources in internationalization process of SMEs but also provided implications for policy makers and managers. Research on Indian SMEs is limited. Similar future research on SMES may help in developing a parsimonious model.

Identification of the Key Risk Factors of the Internationalization Process of SMEs Operating in the Textile Industry

The aim of this paper is to identify the key risk factors of the internationalization process of Czech SMEs operating in the textile industry. To reveal the key risk there was conducted the survey (2011–2012) among 803 Czech SMEs operating in the textile industry, 161 responses were processed. The obtained data were analyzed by statistical methods. Potential risks of entry into foreign market were rated according to their impact on businesses. The greatest influences on the process of successful internationalization have, according to obtained responces, following factors: shortage of capital, lack of the information on foreign markets and high transportation costs. Other factors that may impede the successful internationalization are language barriers, inexperience of management with the internationalization and high prices of products. Knowing the key risk it is easier for SMEs to manage it.

SMEs and international entrepreneurship: An institutional network perspective

This study examines the influence of the use of institutional networks by SMEs in the context of international entrepreneurship (IE). It provides insights into SMEs’ awareness of, access to, and actual use of the resources available through institutional networks and whether these are inducements or deterrents for entrepreneurial activities in foreign markets. A qualitative research design employing a multiple case study approach was used to investigate five internationalized SMEs from Sweden and Finland. The findings suggest that institutional network relationships have a positive effect on the internationalization process of SMEs. However, the significance of this influence is continuous and intertwined in the different stages of the internationalization process. A novel contribution of this study is the use of institutional theory combined with the network perspective to explain how SMEs’ awareness of, and access to, institutional network resources affects their international entrepreneurial activities.

Risk factors in the internationalization process of SMEs

At the present time characterized by globalizing market, increasing competition, accelerating change and the occurrence of many risks it is necessary for businesses, which want to remain competitive, to be able to respond flexibly to the changes in a timely manner and to identify and manage risks. Companies try to diversify business risks, such as the loss of market share in the domestic market, by entering the foreign markets and participating in international trade. Involvement in the internationalization process cannot be understood only as an opportunity to achieve greater profits and a competitive advantage, it is necessary to consider potential risks accompanying this process, because engaging in the internationalization process may bring the companies many different specific risks. It would be useful for companies to identify the factors of failure resulting from internationalization. Identifying the barriers to internationalization, the main risk factors associated with it and designing their possible prevention or elimination could provide SMEs an impetus to enter foreign markets. Although the risk is a frequently discussed issue in the international discussion, only few studies were strictly focused on risk management in the internationalization process. Risk management is a broad discipline that requires a specific knowledge in practice. However, particularly small and medium-sized enterprises are often unable to identify the potential risks of the internationalization process and therefore are not able to manage the risks. This is due to the fact that SMEs usually do not have managers with a deep knowledge of risk management and, moreover, these managers also often lack experience with foreign markets. Unfortunately, the surveys of SMEs conclude that the poorly predicted risks of entering foreign markets are one of the most common causes of failure of SMEs internationalization process.The main objective of this paper is to identify the risks of the internationalization process of Czech small and medium-sized enterprises. To achieve the main aim, it was necessary to make a survey of current situation in Czech small and medium-sized enterprises with focus on the participation in international trade, compared to the situation of these enterprises in recent years. It was also important to define the risk factors faced by Czech small and medium-sized enterprises in connection with the entry and activities on foreign markets and to identify key risk factors SMEs in the internationalization process are exposed to. It was also necessary to find out the obstacles to the internationalization process affecting the decision of Czech SMEs to penetrate foreign markets. And the last but not least task was to suggest some elementary methods that could be used by Czech small and medium-sized enterprises to eliminate risks in their internationalization process.

Key factors in the internationalisation process of SMEs exporting business software as a service

Little is known about how SMEs export business software as a service. This article describes six case studies in which prevailing factors regarded as essential for the internationalisation process of software as a service are identified: generic software, a domestic market base, technical internationalisation and localisation, entrepreneurial management, personal customer contact, and usage of specific market selection criteria such as high IT penetration and maturity levels and psychical proximity. These factors and their interplay do not fit in the established theoretical models of internationalisation in the literature. A redefinition and refinement of internationalisation theories specific to software as a service are needed.

The internationalization process of SMEs: A muddling-through process

Examining the explanatory power of Lindblom's muddling-through concept, the paper contributes to the literature on SMEs' internationalization processes by exploring the underlying rationality of decisions made. The conducted case study shows that whereas several of the studied firm's decision processes during its internationalization process reveal a high degree of congruence with Lindblom's muddling-through approach, others are similar to a root process, or hybrids of the two logics. Over time, decision-makers increasingly behave as rational-comprehensive decision-makers. This paper suggests that the driving forces for this change from muddling-through to rational decision-making are increased experience, increased knowledge and, not least, less goal ambiguity, all of which reduce the limitations in intellectual capacity and lack of knowledge, either through a learning process by managers in the firm or through the arrival of new managers with such experience and knowledge.

Social Capital Theory and the internationalisation process of Czech SMEs

The process and rate of internationalisation of Czech SMEs has recently been affected through the country's accession to the EU. It seems appropriate, therefore, to re-assess the internationalisation processes of Czech SMEs and potential barriers to their entering foreign markets. The aims of this conceptual paper are two-fold; the first is to critically examine the relevant literature regarding the internationalisation process of SMEs in transformation economies in general and the Czech Republic in particular. Secondly, this paper contributes to the SME internationalisation debate by arguing for the inclusion of a Social Capital Theory (SCT) perspective.

Internationalization Process of Spanish Small Firms

The purpose of this article is to provide theoretical and empirical evidence to offer a more integrative vision of the internationalization process of SMEs. Traditionally the literature on the internationalization process has been based on two perspectives, the process theory and the international new ventures model. Combining both approaches and based on empirical data collected from 250 Spanish SMEs, the article explores two possible internationalization strategies (proactive and reactive), identifying the international transaction forms (market and cooperation agreements) and the obstacles and barriers that SMEs meet in internationalization. Our results suggest the complementariness of two theoretical perspectives to explain the internationalization process. Further, that strategic positioning of SMEs is the outcome of a 'learning cycle' that allows firms to overcome internal and external obstacles.When SMEs have a high commitment and control of their international activities, our results also show that firms tend to prefer alternative governance mechanisms such as cooperation. The implications of these results, both for managerial and public policy, are discussed as well as suggestions for future research.

The Internationalization Process of SMEs in the Latin American Context: The Colombian Case

The Internationalization Process of SMEs in the Latin American Context: The Colombian Case