Internationalization Of SMEs Research Articles

Brand building challenges for MSME

The purpose of this paper is to understand brand identity and challenges in brand management in SMEs. The study has been conceptualized with a view to strengthen and augment various initiatives to showcase the strength of MSMEs. This study is an outcome of the need felt or that could be realized by the SME sectors to identify the need for branding. A bundle of marketing innovations, including coherent marketing programs and the use of the country of origin image, support the brands. This study aims to elaborate on branding as a marketing principle relevant to the entrepreneurial quest for stimulating demand and creating competitive advantage. It also aims to highlight the appropriateness of branding to SME practices and to identify relevant guidelines that SMEs could follow in building a successful brand. Brand diversification strategies contribute to SMEs' growth. Results have showed that the founders' value and beliefs set the tone for the core competencies to be developed and transmitted through brand identity. Results need to be expanded and confirmed with other international SMEs that are not as well established and that do not use the country of origin in the brand image. Entrepreneurs need to be aware that the public image may reflect consumers' perception of the firms. Consequently, this image should be carefully nurtured. Because of resource constraints, a limited number of product or service features that complement the entrepreneur's core values should be selected to enhance brand equity. Among those, features linked to the firm's capabilities and to the country of origin would be the most cost-efficient and effective. Moreover, a number of brand diversification strategies can be used by SMEs to spur the growth. The study emphasizes the use of strong brand associations by SMEs, primary and secondary, a focused and integrated communication strategy to enhance the brands as well as a creative approach to brand strategies to contribute to the growth. In a global business environment where competitive advantage is not necessarily dictated by a company’s size or access to resources, it would appear that successful brand management is one of the major keys to success.

Institutional Bridging for SME High-Distance Internationalisation to China: A Contextualised Explanation

ABSTRACTThis article offers a contextualised explanation of the process of institutional bridging by Delta, a British SME, in order to internationalise to China across high institutional distance. The study uncovers three novel mechanisms of ‘Cross-institutional Dissonance Mitigation’, ‘Multi-level Strategic Embedding’, and ‘Cross-institutional Consonance Retuning’ to explain how and why a failing SME with limited resources and networks was able to bridge the institutional distance and internationalise to the challenging Chinese market. This article contributes to the literature on SME internationalisation across high institutional distance by opening the ‘black box’ of SME institutional bridging, hence demonstrating the benefits of contextualised explanations to extend research into internationalisation phenomena that span multiple institutional boundaries.

International social SMEs in emerging countries: Do governments support their international growth?

Through an empirical research developed based on a sample of five international social SMEs in a Chinese city, this study examines the internationalization of social enterprises. Its purpose is to evaluate the role played by governments in supporting international growth. This is done using behavioural theory dimensions of prevalence, relevance, urgency, accessibility, and radicalness. From our analysis, local government supports the launch of social SMEs but this is limited to their growth stage. Entrepreneurial skills and external networks, thus, become crucial factors in the development of a new international business development model, encouraging further scholarly investigation.

Studying the Interrelationship amongst Barriers to Internationalization of SMEs in Developing Countries like India

Studying the Interrelationship amongst Barriers to Internationalization of SMEs in Developing Countries like India

Importance of FDI in SME's Internationalization

Importance of FDI in SME's Internationalization

The Vietnam project: developing conceptual knowledge on cross-cultural skills for training in SME internationalization

ABSTRACTThis paper explores the importance of cross-cultural skills needed by Vietnamese SMEs (current and potential) exporters across Hanoi, Da Nang and Ho Chi Minh City (HCMC). The findings suggest that training needs vary by regions, stage of SME development and cultural context of the region. The study has both theoretical and practical implications. The paper suggests that prior to designing and implementing training, the identification process must involve systematic conceptualization of key export stimuli and be informed by best practice and empirical knowledge. The study endeavours to develop a conceptual framework and propositions for future research.

기술기반 중소기업의 기업가지향적 문화가 국제화 수준에 미치는 영향: 해외 학습, 네트워킹의 매개효과를 중심으로

기술기반 중소기업의 기업가지향적 문화가 국제화 수준에 미치는 영향: 해외 학습, 네트워킹의 매개효과를 중심으로

The Individual Competencies and Ambidexterity Organization Capability: Indonesian SMEs Perspective

The individual and organizational competencies of Indonesian SMEs area unit investigated beneath an ambidextrousness model. The ambidextrousness is the capability of the organization and an individual at the same time implement to explore and exploit the innovation activities. This study investigates whether or not the ambidextrousness capability acts as a dynamic capability. These dynamic capabilities as a basis for the Indonesian SMEs’s that enhance theirs owns innovation capabilities and business performance successively. The study used quantitative methodology. SMART PLS is used to analyze data, and the explanatory methods are used in the second phase for further explanatory context of the ability of SMEs in international market access. The results of this study found that improvement of the dynamic capability skills among SMEs, the ability to innovate, see the market potential as a key growth, and some characteristics as key predictors for selecting access to the international market. The empirical findings are expected to be relevance as they can assist Indonesian SMEs’ managers or entrepreneurs in acceptable access, which, if effectively decided, can be mutually beneficial. This study contributes to the latest knowledge in the field of internationalization of Indonesian SMEs with a two-dimensional change of key individual and organizational competencies, whereby both dimensions are considered important as drivers for the internationalization of Indonesian SMEs.

Multilevel psychic distance and its impact on SME internationalization

We expand the conceptualization of psychic distance and use a multilevel framework by studying it as a founder’s psychic distance in the pre-entry phase of entering a specific foreign market, and the SMEs (firm) psychic distance in the post-entry phase of entering that specific foreign market. Based on qualitative research involving six SMEs’ with 18 internationalization events, we found that psychic distance at country and business levels causes difficulties for SMEs in the post-entry phase because of their lack of knowledge. Bridge-makers possessing knowledge about target markets help SMEs to overcome psychic distance challenges. Trust in the relationship with the bridge-maker is an important ingredient to gain knowledge that alleviates the SMEs’ psychic distance challenges. Finally, we go beyond country-business levels of psychic distance by showing that psychic distance also matters at bridge-maker level. This relates to their lack of knowledge about the target market and SMEs’ routines.

Theoretical approach to the internationalization of SMEs: future research prospects based on bibliometric analysis

SMEs are considered as the important factor for economic development of countries and thus, internationalization of SMEs plays a significant role in this phenomenon. The internationalization theories are still expanding and being developed by the scholars. While a number of studies explained internationalization, investigations of international behavior of SMEs demonstrates mixed results. The paper aims to overview the theories of internationalization and reveal the interpretations of internationalization concept. The research is based on analysis and synthesis of the scientific literature. In addition, the bibliometric data of accomplished studies in the field of SMEs internationalization were analyzed. The data were collected from Clarivate analytics database. The yearly number of articles in 1990-2019, top authors, journals and locations were considered. Visualization graphics with VOSviewer software were developed based on the same bibliometric data. The graphics reflected co-citations of keywords, authors, sources, and referencies among the selected articles. The research contributes to the prevailing studies by revealing the trends and possible research streams.

Export of SMEs after the crisis in three European peripheral regions – A literature review

After the serious effects of the international crisis of 2008 export activity – as a main form of internationalisation – proved to be an important element of survival and growth for small and medium sized enterprises. Recovery was especially difficult for the so-called peripheral countries, among them the Iberian, Baltic and Visegrád economies, on which this article concentrates. The observed period is between 2008 and 2016. First, a brief theoretical overview is given on SME internationalisation. Second, a literature review focuses on the export enhancing factors based on existing enterprise surveys and studies prepared after the crisis. These show that peripheral area SMEs are already similar to others regarding these stimuli, manager attitude and innovation being the most important ones. Third, statistical data are analysed to assess the significance of SMEs in employment, value added and exports. In this respect, SMEs and their pace of recovery are somewhat different in the three regions but not so distinct from the core countries. Finally, it is shown that in the post-crisis period, two main changes can be perceived: the temporary shift of exports towards non-EU markets and structural rearrangements in exporting enterprises.

Human Capital and SMEs Internationalization: Development and Validation of a Measurement Scale

The purpose of this study is to develop a measurement scale for human capital in context of SMEs internationalization. Exploratory factor analysis and confirmatory factor analysis were applied on primary data collected from Indian SMEs. This developed scale was tested for reliability and validity. We found that ‘education’, ‘knowledge’, ‘experience’ and ‘skills’ are the main dimensions of human capital in SMEs, and were found reliable and valid to measure this construct. This study has combined the dimensions previously used separately in other studies. Results supported the past studies which concluded that human capital is a multidimensional construct. This study has extended multidimensionality of human capital in context of SMEs specifically in their internationalization. The study will imply to practitioners in assessment of human capital in SMEs, related to the dimensions constituting it. Objectives of policies and programmes to further enhance and develop human capital can be set accordingly. In addition, international entrepreneurship researchers can use this measurement scale to further study and investigate human capital and its components in SMEs. This study provides a ground for further adding more dimensions and variables to human capital.

A Conceptual Model of Knowledge Management Practices and Internationalization of SMEs

This work aim is to study the relationship between the internationalization of SMEs and Knowledge Management practices. In order to better assimilate the behaviour of these companies, we will focus on their main features as well as the different forms of possible entries to foreign markets. Afterwards, interest will be focused on the role of knowledge in the internationalization process. Through the literature review, it turns out that researchers mainly focus on the perception, the implementation and the transfer of knowledge practices, while neglecting other aspects like identifying, sharing and applying knowledge. For this purpose, we will attempt to conceptualize relations that require more attention in future research. The proposed model can form a basis for future researches in International Business and Knowledge literature.

Internationalisation of SMEs: development and validation of a multi-dimensional measurement scale

The purpose of this study is to develop a multi-dimensional measure for internationalisation of small and medium enterprises. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was used on primary data collected from Indian SMEs. The developed measure was tested for reliability and validity. We found that 'degree or extent', 'speed', and 'scope' are the three dimensions of Internationalisation in SMEs, and found reliable and valid to measure this construct. Results of this study contradict with some past studies which supported Internationalisation of SMEs being a unidimensional construct. But, results also supported few past studies, which supported Internationalisation of SMEs being a multi-dimensional construct. This study will imply to practitioners in assessment of internationalisation in their SMEs, related to degree, speed and scope. To policy makers, for analysis of government policies for internationalisation of SMEs. Objectives of policies and programmes to promote Internationalisation in SMEs can be set accordingly. In addition, international entrepreneurship researchers can use this measure to further study and investigate Internationalisation of SMEs. This study provides a ground for future to add more dimensions to internationalisation.

Informal institutions and international performance of Ghanaian small exporting firms: moderation role of formal institutions

This paper accentuates the conviction that institutions play a significant role in SMEs internationalisation. Informal institutional mechanisms have been notable in localities in the African setting. However, most studies in business research have been focused on formal institutions. The role of informal institutions in the international performance of SMEs demands to be understood with more cases. This paper argues that the two dimensions of institutions do not work in isolation but complement each other to provide the desired results in SMEs' international performance. We analyse the complementation role of formal and informal institutions in the internationalisation of small exporting firms. This study is based on primary data collected through a survey of 134 small exporting firms from different sectors in Ghana and analysed with multiple regression in SPSS. Findings revealed that not every aspect of the informal institutional mechanism is relevant for superior firms' international performance. Formal institutions complement informal institutions in order to function effectively.

Informal institutions and international performance of Ghanaian small exporting firms: moderation role of formal institutions

This paper accentuates the conviction that institutions play a significant role in SMEs internationalisation. Informal institutional mechanisms have been notable in localities in the African setting. However, most studies in business research have been focused on formal institutions. The role of informal institutions in the international performance of SMEs demands to be understood with more cases. This paper argues that the two dimensions of institutions do not work in isolation but complement each other to provide the desired results in SMEs' international performance. We analyse the complementation role of formal and informal institutions in the internationalisation of small exporting firms. This study is based on primary data collected through a survey of 134 small exporting firms from different sectors in Ghana and analysed with multiple regression in SPSS. Findings revealed that not every aspect of the informal institutional mechanism is relevant for superior firms' international performance. Formal institutions complement informal institutions in order to function effectively.

Internationalisation of SMEs: development and validation of a multi-dimensional measurement scale

Internationalisation of SMEs: development and validation of a multi-dimensional measurement scale

Industry 4.0 as the Driving Force of SME Internationalisation: A Case of Lithuania

Abstract Small and medium-sized enterprises (SMEs) are assumed to be one of the key contributors to the country’s economic growth and social welfare. Thus, their internationalisation appears to be inevitable considering how globalisation processes have changed the rules of competition in recent decades. Smart and digitalised technologies (Internet of Things and Services, etc.) decentralise communication and provide the opportunities for new firms to overcome the barriers of geographical location and access international markets through co-creation business models and changes of the value chains. The paper aims at analysing and disclosing how the fourth industrial revolution (Industry 4.0) influences SME internationalisation. The present study is grounded on the research of extant scientific literature and assessment of experts. The research demonstrates that Industry 4.0 positively influences the internationalisation of SMEs on a number of dimensions. The recommendations for managers and policymakers how to foster internationalisation of SMEs are suggested.

Internationalisation of SMEs: how does global mindset and network relationships impact in India

Internationalisation of SMEs: how does global mindset and network relationships impact in India

FUNCTIONS AND MODES OFINFORMATION DEVELOPMENT OF ECONOMY: METHODS AND MODELS

Informatization intensification of the modern economy stresses the importance to discuss the following group of issues: 1) the establishment of criteria and measurement of the effectiveness of the information system; 2) the definition of the information potential of the agent and the assessment of effective information action; 3) information security of the social and economic system. The purpose of the study is to analyze theoretically the functions of various types of information with the determination of the efficiency of information and the modes of economic systems information development. Economic agents are known to search for relevant information that is only a part of total information in the system to make efficient decisions. The action of an agent as well as the development of an economic system is generally characterised with an efficiency coefficient that assesses the opportunity to obtain relevant information. The research methodology is the classification method that allows us to highlight the properties of information, to introduce quantitative indicators for measuring these properties and using mathematical tools to determine possible relationships between them, building theoretical models of the dynamics of information development of economy. Using this approach the functions of information, namely, notification, accumulation, cumulative amplification within the framework of consideration of the informational interaction schemes “object-agent” and “agent-agent” have been determined. The criterion of information potential of the controlled system and the information efficiency coefficient have been introduced. The latter means the ratio of information security to the level of information completeness of the system. Using the analysis of the dynamics of the efficiency and the ratio of relevant and general information, the modes of information development of the controlled system have been determined; three options for the accumulation of information with the ability to quantify the effect that determines the development of the knowledge economy have been suggested. Standard, enhanced and storage accumulations have been shown in the framework of the “object-agent” information interaction model, formal parameters for their quantitative assessment have been introduced. We have proved that one of the goals of economic policy should be the insurance of the necessary regime of information development of the economy, that is aimed at solving problems in the field of information security due to the fact that the functions of information can be violated, i. e. performed with different results, which indicates the dysfunction of the information system and economic management. Such the approach will reduce the depth of dysfunctions of economic policy measures and the application of the information security loop proposed by the author will provide the tool for comparing the damage and benefits from possible information threats, which predetermines the practical application of the conducted theoretical analysis applied to different information modes. Sustainable development of the modern economy should consider the elimination of information threats especially in the context of overcoming opportunism in the form of deliberate distortions of information in order to obtain additional benefits. At the same time, the use of the information security loop for the development of economic policy measures will allow not only to diagnose the damage and benefits within the existing information processing regime, but also to identify the dynamics of the economic system development as a result of changes in the ratio of information benefits and costs. Keywords information, informatization of economy, information potential of economy, function of information, information development mode, information interaction models, information security of economy, combinatory principle, information security loop, dysfunction of information system, dysfunction of economic policy.