Internationalization Of SMEs Research Articles

International Entrepreneurial Aspiration and Internationalisation Speed in an Emerging Economy

Guided by the theory of planned behaviour and resource dependency logic, we explored how international EO arising from international entrepreneurial aspiration triggers the speed of the internationalisation of SMEs in an emerging economy. Based on a moderated mediation model this study posits that international political network ties moderate the positive linkage between international EO and internationalisation speed and strengthen the positive indirect effect that exists between international entrepreneurial aspiration and internationalisation speed. Results of our study based on 299 SMEs supported our hypotheses. Implications of our results for SME owners/managers in an emerging economy context, as well as the limitations and directions for future research, are discussed.

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.

Customer reference marketing in internationalizing SMEs: a service perspective

Purpose The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized enterprises’ (SMEs) perceived importance of customer reference marketing in foreign markets. Design/methodology/approach A theoretical model is developed and tested through multiple regression and mediation analysis, on an effective sample of 188 Swedish SMEs. Findings The results show that foreign market business assignments characterized by differentiated services make companies relatively more dependent on relationship learning and customer reference marketing. By contrast, situations of differentiated product content correlate negatively with customer reference marketing. Practical implications Reference customers can function as vehicles for international expansion when marketing offerings are complex. The findings imply that in service settings, SMEs need to maintain learning regimes with foreign market customers to effectively use them as references to win new business. Originality/value The study applies a service perspective to explain the contingencies of customer reference marketing, particularly in international business settings. The study contributes to international small business literature and research focusing on service–firm internationalization by explaining the marketing mechanisms at play in the internationalization of SMEs. In so doing, the findings can enrich relationship and network perspectives of internationalization and add a missing link to studies on networking and internationalization.

The Role Of Competitive Advantage Towards Accelerating Internationalization Of SMES In Indonesia

This paper aims to explore the role of competitive advantage in accelerating the internationalization ofSMEs in Indonesia. The source of this paper is secondary data with a literature and empirical study approach from previous articles and other supporting sources. Data sources and various articles show that digitalization as a competitive advantage has a very important role in accelerating the internationalization of SMEs in Indonesia, but the results of the study of various sources of digitizing strategies for competitive advantage, many factors determine the international acceleration of SMEs in Indonesia such as partnerships, customer relations, business process management, as well as investing in information and communication resources. The government's role is also very dominant in the process towards accelerating the internationalization of SMEs in Indonesia

China’s OFDI support mechanisms in Germany: how governments can work together to promote SME internationalization, reduce liability of foreignness and contribute positively to society

PurposeNested within institutional theory and the political economy perspective, this study aims to examine Chinese outward foreign direct investments (OFDI)-supporting organizations and fostering mechanisms for its SMEs in Europe’s largest economy, Germany.Design/methodology/approachThe authors conduct a multiple-case study to present rich insights from elite interviews with representatives of Chinese and German governmental organizations, intermediary parties and specialized OFDI consultants. In addition, the authors analyze secondary data such as presentations, websites, brochures, social media and recent Chinese OFDI policies for SMEs. The findings are triangulated by interviewing business owners and senior executives of seven Chinese SMEs that have invested in Germany.FindingsCooperating with Germany’s federal government, China’s ministries implemented an effective OFDI support network in Germany, which connects and benefits both economies. This includes Chinese governmental organizations, privately-held national champions, German–Chinese business associations and linked intermediary parties. These organizations support SMEs through four main mechanisms: networking and information, mutually beneficial knowledge transfer between innovation partners, lobbying for potential cooperation and an objective picture of Chinese OFDI and facilitating investment services.Originality/valueThis study advances OFDI theory and contributes to the growing discussion on the internationalization of Chinese SMEs by shedding light on China’s OFDI support organizations and mechanisms in the German market. The study also offers practical contributions. Understanding better how governments can spur internationalization is vital, as it determines the effectiveness of policymaking and fosters international mutual understanding, cultural exchange and firm growth and innovation (Ahlstrom, 2010), and hence ultimately contributes positively to society. Moreover, knowing the specific OFDI support organizations and measures China is currently adopting can serve as a helpful orientation for Chinese entrepreneurs who plan to invest in Germany.

Disruptive Innovation in the Context of Retailing: Digital Trends and the Internationalization of the Yiwu Commodity Market

The prevalence of disruptive innovation practices, enabled by the advancement of digital technologies, has greatly changed the way SMEs innovate and the competitive landscape of today’s retail industry. This study seeks to understand how disruptive innovation has been adopted for the purpose of internationalization across retailing SMEs in Yiwu’s Commodity Market. To answer the research questions, the approach used in this study utilized a qualitative research approach in combination with semi-structured interviews. In this way, the chronology of several phases of Yiwu’s Commodity Market’s development into a global market center is presented, based on analysis of the data. The findings of this study provide an insight into how to facilitate disruptive paths to achieve the internationalization of SMEs through dynamism of the market, strategy positioning, and capability construction. This study contributes to literature on disruptive innovation by providing and testing a model of internationalization mechanisms that SMEs can use to coordinate digital disruptive innovation-related activities. The study also provides insights for policymakers and SMEs in the retail industry about the importance of digital technologies for motivating potential entrepreneurs to pursue new ventures.

International entrepreneurial SMEs in the muslim world: The role of religion in the GCC countries

Recent studies examining the internationalisation of SMEs in emerging economies have observed that religion affects international market entry, which suggests that specific cultural aspects, such as religion, have not hitherto received enough attention. Hence, this study examines a theme that has seemingly escaped the research agenda: how does religion affect SMEs’ internationalisation? The study draws empirical evidence from 10 manufacturing SMEs located in the Gulf Cooperation Council (GCC) region. Through an embedded approach to case study research, the study queries the role of religion in the development of intra-Muslim internationalisation and contributes to the scant literature that examines the impact of Islamic values on international business activities. The findings show three dimensions of Islamic entrepreneurship, viz. regional rather than international networking orientation, risk aversion and proactiveness.

Проблеми малого та середнього бізнесу в умовах пандемії COVID-19: європейський вимір

An important role in the development of economic systems of the world’s leading countries is played by small and medium-sized businesses, which are the basis of the economy, create GDP, are a significant source of budget replenishment, provide the largest number of jobs. In the conditions of open economy it is important to compare the national economy with European and world countries, to define strategies that will set the vector of development of a competitive country and ensure accelerated economic growth. The aim of the proposed study is a comprehensive comparative analysis of the Ukrainian business environment in the field of small and medium enterprises in the European context. Modern challenges have made changes and adjustments to the economic development of the world and Ukraine. Therefore, it is important to summarize the practical experience of Ukrainian and world’s small and medium-sized businesses during the crisis and identify prospects for further development. The article is devoted to a comprehensive study of small and medium-sized businesses in Ukraine. What was conducted is a statistical assessment of the overall performance of medium and small businesses in terms of individual countries; the criteria for obstacles to doing business in Ukraine were identified. In order to analyze the positioning of Ukraine in the global space, a study of the essential characteristics of ratings and indices that assess the social, economic and political spheres in Ukraine, highlights the current state of small and medium business, identified its place in interstate comparisons. The key directions of activation of small and medium business in the conditions of economic crisis caused by the world pandemic are generalized and singled out. The research methods: are comparison, explanation, abstraction, empirical analysis and synthesis, a combined method of similarity and divergence. Current situation and negative trends in the development of small and medium-sized businesses in Ukraine and institutional constraints on entrepreneurship caused by the economic crisis due to the global pandemic require increased attention to the current problem of business units and use the positive experience of leading European countries. medium business. In the long run, Ukraine must ensure the sustainable development of its own institutional and legal framework for SME policy, expand deregulation measures and ensure a level playing field for SMEs. In addition, promoting the greening and internationalization of SMEs and providing business development services will help increase the competitiveness of the Ukrainian economy. Prospects for further research lie in the field of comparative analysis of government policy research in the field of small and medium-sized businesses in the European dimension in order to identify contradictions.

The Internationalization of SMEs: Motives and Barriers

The Internationalization of SMEs: Motives and Barriers

Activating assets of foreignness in compressed developing markets: evidence from New Zealand SMEs entering the Chinese market

ABSTRACTThe methods Western SMEs can use to activate assets of foreignness in compressed developing markets are not well understood. To fill this gap, this study identifies three main mechanisms for such activation: conforming to home-country institutions, creating distancing narratives and accentuating foreignness. It contributes knowledge about SME internationalization into compressed developing markets through two findings. First, SMEs can benefit from contrasting country practices and norms between home and host countries. Second, SMEs can activate institutional resources of their home country, which requires between-market learning because the value of these resources arises from their use in a different context.

Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review

The purpose of this scoping review is to verify the evidence that is already available regarding the entrepreneurial orientation and internationalization of SMEs. Researchers used the model from Arskey and O'Malley to perform the scoping review method and the PRISMA flowchart to identify the literature found. Researchers found 13 relevant articles related to entrepreneurial orientation and the internationalization of SMEs. Risk-taking, inventiveness, and proactiveness are all important components of an entrepreneurial mindset, and they are all important contributors to effective internationalization. This shows that an entrepreneurial orientation is needed by SMEs to move towards internationalization.

Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review

The purpose of this scoping review is to verify the evidence that is already available regarding the entrepreneurial orientation and internationalization of SMEs. Researchers used the model from Arskey and O'Malley to perform the scoping review method and the PRISMA flowchart to identify the literature found. Researchers found 13 relevant articles related to entrepreneurial orientation and the internationalization of SMEs. Risk-taking, inventiveness, and proactiveness are all important components of an entrepreneurial mindset, and they are all important contributors to effective internationalization. This shows that an entrepreneurial orientation is needed by SMEs to move towards internationalization.

The Role of Financial Literature of SMEs in the Internationalization of Export Products

This research is a literature study on financial literacy and the internationalization of SMEs. This study aims to discuss the role of SME financial literacy in the internationalization of export products. The research method used in this study is a qualitative descriptive method. The type of data used in this research is qualitative data, which is categorized into two types, namely primary data and secondary data. Sources of data obtained through library research techniques (library study) which refers to sources available both online and offline such as: scientific journals, books and news sourced from trusted sources. The results of the study conclude that the role of SME financial literacy in the internationalization of export products is very important. Financial literacy is one of the important knowledge resources that increase the capacity, skills and expertise of individuals and companies to use technology effectively. Important aspects to consider in the internationalization of SMEs include entrepreneurship, finance and technology, SME resources, routines within the company, entrepreneurial knowledge and actions. All these aspects, especially financial literacy, are important to be considered by SMEs that will become Global SMEs and when assessing opportunities in foreign markets in export products.

The Role of Financial Literature of SMEs in the Internationalization of Export Products

This research is a literature study on financial literacy and the internationalization of SMEs. This study aims to discuss the role of SME financial literacy in the internationalization of export products. The research method used in this study is a qualitative descriptive method. The type of data used in this research is qualitative data, which is categorized into two types, namely primary data and secondary data. Sources of data obtained through library research techniques (library study) which refers to sources available both online and offline such as: scientific journals, books and news sourced from trusted sources. The results of the study conclude that the role of SME financial literacy in the internationalization of export products is very important. Financial literacy is one of the important knowledge resources that increase the capacity, skills and expertise of individuals and companies to use technology effectively. Important aspects to consider in the internationalization of SMEs include entrepreneurship, finance and technology, SME resources, routines within the company, entrepreneurial knowledge and actions. All these aspects, especially financial literacy, are important to be considered by SMEs that will become Global SMEs and when assessing opportunities in foreign markets in export products.

Mode of Entry Strategy on SMEs Internationalization in East Java: A Review of Literature

This study review the internationalization of SMEs in East Java from a literature and empirical perspective with the aim of providing in-depth knowledge based on the existing literature and supported by empirical data generated from previous research. This study uses content analysis of current theories and models coupled with empirical analysis of the internationalization studies of SMEs that have been carried out. There are several theories and models, such as the internalization theory, the eclectic paradigm, the Upsala model, the network perspective that connects the internationalization strategy of SMEs in East Java, and several modes of entry for internationalization. The theory is based on the basic resource-based view and network theory. Documented evidence shows that the internationalization strategy of SMEs in East Java still has many obstacles and challenges. Theoretically, the internationalization strategy related to the mode of entry leads to networking. Empirical data supports that the strategy mostly carried out by SMEs in East Java is networking independently. The results of this study are expected to contribute ideas for policymakers, in this case, the government, to play a more active role with long-term strategies for the success of the internationalization of SMEs in East Java.

Tackling business model challenges in SME internationalization through digitalization

Many SMEs aim for business development by diversifying their offerings to fit global markets. However, internationalization has consequences for all aspects of a company's business model. Even though internationalization poses many business model challenges, the recent development of digital technology is a key enabler of resource-efficient internationalization and business development, an innovation that SMEs find accommodating. Thus, the purpose of this paper is to analyze how digitalization can help to surmount the business model challenges associated with SME internationalization. This paper builds on an exploratory case study of 29 SMEs who have an internationalization strategy and are from sparsely populated areas in Finland and Sweden. For the data analysis, the first-order codes of different business model challenges of SME internationalization have been merged into second-order themes. The final step of the analysis involved ascertaining the overarching dimensions of these business model challenges. This paper identifies business model challenges related to value creation, delivery, and capture throughout the internationalization process. In addition, a framework is developed that matches digitalization activities with the business model challenges. Because there is no “one fits all” solution, this study matches specific digitalization activities with business model challenges that SMEs face when attempting to operate in international markets. These findings are important because they dissect digitalization into executable activities that SMEs find manageable.

CEO polychronicity and SME internationalization

Purpose This study, leveraging the upper echelon and social network theories, aims to explore the association between chief executive officers (CEO’s) polychronicity and small and medium size enterprises (SMEs’) international performance under the complete mediation effect of social networks. The paper explores this relationship under the moderation effect of CEO perceived time pressure and synchrony preference. Design/methodology/approach The paper investigates a moderated mediating relationship based on a sample of 186 UK firms. Findings The findings of this study suggest that social network fully mediates the CEO polychronicity and firm international performance relationship. Furthermore, CEO perceived time pressure moderates the social network and SME international performance relationship such that it reduces the positive indirect association between CEO polychronicity and SME international performance. CEO synchrony preference, on the contrary, enhances the positive indirect association between CEO polychronicity and SME performance. Originality/value Extant research suggests SMEs having a more robust set of organizational capabilities helps them network and avail foreign market knowledge. However, research exploring antecedents of this organizational capability is scant.

Study of Relationships between Companies’ Digitalisation, Resources and Capabilities on Competitive Advantage of Small and Medium Enterprises in Indonesia

The importance of this study is to examine the factors that could influence Indonesian SMEs in term of their competitive advantages in the international market. Some research on international entrepreneurship shows resources, capabilities as the drivers of SME internationalisation that relate to competitive advantage. However, the evidence where resources, capabilities, and digitalisation will lead SMEs competitive advantages in international market requires more discussion, particularly in developing countries such as Indonesia. This paper examined resources, capabilities, and digitalisation direct and indirect relationships with competitive advantages in international markets. The directory of DGNED is being utilised in this study on zooming at Indonesian exporting SME. This study is a quantitative study methods where convenient sampling was used in getting the sample through online survey questionnaire. There were 50 samples responsed to this study. The study utilised SmartPLS software to analyse the data. The findings showed that digitalisation and capabilities significantly and positively influence competitive advantages in international markets. Management international resources contribute to price advantage, international capabilities contribute to product and service advantages, while digitalisation has no direct effect to any of these competitive advantages. Nevertheless, these two constructs are important for SME internationalisation owing to their indirect effects on product and service advantages. This research contributes to Indonesian SMEs that possess the desire to internationalise and enhance their presences in the international market. With understanding on the basis of evidence on capabilities, resources, and digitalisation, SMEs may make haste on its internationalisation in an less difficult method on risks, capital and time. Therefore, SMEs should get and improve the suitable resources, capabilities to gain competitive advantages by creating their international capabilities in the international markets. Future research should replicate this study with bigger sample size, longitudinal study and across continents for better understanding on international competitions.

Manager gender, entrepreneurial orientation and SMEs export and import propensities: evidence for Spanish businesses

This paper investigates the role of manager gender in SMEs’ decisions to get involved in exporting and importing activities, using a sample of 1,405 Spanish SMEs. We borrow insights from international entrepreneurship theories and feminist theories to set testable hypotheses regarding how managerial gender and entrepreneurial orientation (proactiveness, risk-taking and innovativeness) may influence SMEs export and import propensities. Using a bivariate probit model and controlling for other managerial and business characteristics, results reveal that there are not significant disparities in exporting propensities between men- and women-run businesses. However, female-led SMEs show a lower importing propensity, in comparison to male-led counterparts. In addition, the three entrepreneurial orientation dimensions (proactiveness, risk-taking and innovativeness) are important drivers for participating in overseas markets, and do not depend upon the manager gender. This work provides new empirical evidence on the comparison between men- and women-run SMEs as regards export/import behavior and thus, it contributes to improve our knowledge on the role of gender in SMEs internationalization. The role of manager’s gender in SMEs import propensity has not been investigated so far, and this is the main novelty of our 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. 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.