Internationalization Of SMEs Research Articles

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.

EU의 중소기업 국제화 정책과 시사점

EU의 중소기업 국제화 정책과 시사점

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

This study examines the effect of cultural intelligence, the internationalisation motivators and the entrepreneur's and the firm's characteristics on the SMEs internationalisation based on the resource-based, the market and the network views of internationalisation, combined with the social cognitive theory of motivation. It uses the survey method and analyses the information received from a stratified sample of Egyptian manufacturing SME managers. The data is analysed through hierarchal regression, binary logistic regression and dominance analysis. The findings suggest that the cultural intelligence of the SME managers affects the internationalisation of Egyptian SMEs in the internationalisation intention phase more than in the actual internationalisation stage. The internationalisation internal and external motivators, on the other hand, have a more important effect in the actual internationalisation phase. The empirical results contribute theoretically to the development of a unifying framework for SME internationalisation and have practical implications for the ecosystem of SMEs.

The integrated use of social media, digital, and traditional communication tools in the B2B sales process of international SMEs

Social media and digital tools are gradually changing the way firms market themselves. Understanding how these communication tools are used by sales functions within business-to-business (B2B) markets could clarify the dynamics underpinning the sales process in an increasingly technology-mediated world. This paper explores how social media, digital, and traditional sales communication tools are leveraged during the three main phases of the B2B sales process within international SMEs.The article’s grounded-theory approach illustrates that social media can be particularly helpful in engaging international prospects. Digital communication tools seem to be most prevalent in the persuasion phase, whereas more traditional communication tools still prevail in customer relationship management. However, there seem to be some important potential boundary conditions, including relationship culture, location proximity, technology innovation/resources, and strategic importance of the customer that affect the way international SMEs use different communication tools during a sales process. We develop a framework for understanding the B2B sales process flow with sales communication tools included for international SMEs.

Servant leadership, CSR perceptions, moral meaningfulness and organizational identification- evidence from the Middle East

This article explores a novel process linking servant leadership (SL) to organizational identification (OI). In doing so, the study examines SL as an antecedent of internal corporate social responsibility (CSR) perceptions of employees and assesses moral meaningfulness as a moderator in the relationship between SL and OI through internal CSR perceptions. Utilizing a comparative institutional theoretical lens, it also explores how the SL-OI relationship varies across the UAE, Lebanon, and Tunisia. Two-wave and three-wave survey data are collected from employees working for international SMEs in the three countries. Findings show that the link between SL and OI can be explained by the proposed moderated mediation model and that the SL-OI relationship varies across the nations. Implications of these findings are discussed.

SMEs’ International Strategic Groups and Top Managers’ Psychological Characteristics

This research analyzed the small and medium-sized enterprises’ (SMEs) international strategies concerning the scale and scope of the international activities. The major purpose was to study the international top managers’ psychological characteristics as distinctive capabilities within the defined international strategic groups. The international top managers’ cultural intelligence and emotional intelligence were taken as main characteristics to act in the international business environment. Therefore, we took as the main motivation to perform the present investigation the need to understand which psychological characteristics may help the international top managers to pursue high degrees of internationalization in their firms. This study was conducted in Portugal, and the sample was composed of 307 Portuguese SMEs’ international top managers directly responsible for the firms’ international decisions. The multinomial logistic regression method was used to test the hypotheses. The firms were classified into three international strategic groups based on the internationalization scale and scope. The degree of internationalization reflects that combination, creating groups with a high, medium, and low international exposure. The main result indicates as a distinctive capability, the international top managers’ cultural intelligence within the firms that exhibit a high international strategic positioning. Regarding the main contributions, this article contributes to the bodies of knowledge of international SMEs, cultural intelligence, emotional intelligence, and networking. This study also contributes to upper echelons theory and the resource-based view.

地域中小企業国際化の胎動と自立化 日立地域中小企業のDOI（Degree of Internationalization）と自立化の測定

地域中小企業国際化の胎動と自立化 日立地域中小企業のDOI（Degree of Internationalization）と自立化の測定

The Effect of Emotional and Cultural Intelligences on Networks' Behaviors in International SMEs: Evidence from Portugal.

The major purpose of this research was to study the predictive value of the top managers’ psychological characteristics regarding their networking behavior. In the international business management context of small- and medium-sized enterprises, we took the top managers’ cultural intelligence and emotional intelligence as determinant capabilities to perform better in their external networking. The sample was composed of 307 Portuguese SMEs’ international decision-makers, specifically founders, owners, chief executive officers (CEOs), managers of international activities, international market managers, or commercial managers. The data was collected from 2–30 April 2019 through online surveys directed to the Portuguese decision-makers that were directly responsible for the firms’ international activities. As a data collection instrument, the surveys were pretested and sent by e-mail. The average age of the participants was approximately 50 years old for males and 45 years old for females. We used self-reported measures to assess the different constructs and the hierarchical regression analysis to test our hypotheses. The results showed that cultural intelligence and emotional intelligence were significant drivers of decision-makers’ external networking behavior. A new factor structure concerning external networking behavior was retained. The major results exhibited the predictive value of some cultural and emotional intelligence dimensions over the new retained external networking behavior factors. Therefore, in the international business management context, the capability to adapt to new cultural contexts, as well as the capability to reason about emotions, improved the international decision-makers’ external networking behavior.

Small- and Medium-sized Firms’ Internationalization and Performance during a Recession

This study aims to verify the relationship between overseas activities and performance of Korea's SMEs during the last financial crisis. Whether overseas activity performance of enterprises differed was determined based on characteristic variables, including the degree of concentration on R&D and marketing. This study also examined how SMEs' international transactions and their performance differed based on internal variable such as the level of stock holding and firm size. This study developed a model for analyzing the relationship between the level of internationalization and performance of Koran SMEs listed in the KOSDAQ. We used firm-level data, including annual reports and various data sources such as the KISVALUE program. To smooth annual fluctuations in accounting data, we used a three-year average from 2006 to 2009 for each variable in the study. The results showed that proactive overseas activities ultimately had a positive effect on an enterprise's performance, even though it initially had a negative effect. Therefore, enterprises should focus their capacity on R&D and marketing environment. Although numerous studies have focused on the relationship between overseas activities and performance of enterprises, the present study analyzed whether enterprises should continuously engage in overseas activities and what capacities they should strengthen during a global economic recession.

International Performance of SMEs’ International Strategic Groups

The present research focuses on whether the different combinations of the micro, small and medium-sized enterprises’ (SMEs) international scale and scope affect their international performance differently. The major purpose of this research is to study the paramount relationship between the SMEs’ international strategies and international performance. With a sample composed of 307 international SMEs, our empirical analysis defines three different strategic groups regarding the scale and scope of internationalization, that is, a high, medium and low international exposure of the firms. The scope, as an important international strategic dimension, is taken from two angles, the number of countries and the number of regional blocs where the firms operate. We assessed the strategic groups’ implications on the firms’ international performance. The latter was taken as a multidimensional construct composed of the financial, strategic and overall international performance respectively. We used the hierarchical regression analysis to test our hypotheses, and major results emerged. Higher levels of commitment with the international markets lead to better financial, strategic and overall international performances. These results are of utmost importance from the theoretical point of view and for the strategic decision-making of SMEs, opening new avenues for future studies.

Entrepreneurial Orientation, Network Competence and Human Capital: The Internationalization of SMEs in Oman

Internationalization of SMEs has gathered pace in recent times with falling trade barriers and rising world trade encouraging small firms to seek profits and growth in foreign markets. This has attracted the attention of researchers, and several studies have been conducted in Western nations on the factors influencing the process of SME internationalization. However, hardly any study has been done on SME internationalization in the Gulf Cooperative Council (GCC) region, thus leaving a gap in the literature. This study investigates the influence of four factors, namely, human capital, network competency, entrepreneurial orientation, and market volatility on the degree of internationalization of SMEs in Oman. The study employs survey data collected from 150 SME owners and managers using a structured questionnaire having 27 items, and has been analyzed using correlation and logistic regression, as the dependent variable is binary in nature. The results reveal the impact of the chosen variables on the degree of internationalization of SMEs. The findings of the study suggest that network competency has the highest impact on degree of internationalization of Omani SMEs, followed by human capital and entrepreneurial orientation, while market volatility, though insignificant, moderated the relationship between entrepreneurial orientation and degree of internationalization of Omani SMEs.

The Internationalization of SMEs in Central Europe and Its Impact on Their Methods of Risk Management

Janos Bolyai Research Scholarship of the Hungarian Academy of SciencesHungarian Academy of Sciences

Untangling the Nexus of International Entrepreneurial Orientation and SME International Performance

This article extends knowledge of international entrepreneurial orientation (IEO) by examining IEO influence on of small- and medium- sized enterprises (SMEs). We enhance understanding of international performance of SMEs by taking into account the effect of IEO and each of its sub-dimensions, as well as the moderating role of the start of internationalization, i.e. early internationalization versus late internationalization. A sample of 221 internationalizing SMEs in France showed differentiated influences of IEO sub-dimensions on international performance of BGs and TRADs, while supporting a stronger impact on BGs. These findings give new insights about the importance of IEO in internationalization of SMEs.

The More the Merrier? Geographic Scope and SME Growth Dynamics

The impact of international activities on SME success has been extensively studied in the vibrant literature on SME internationalization, particularly with respect to the performance and survivorship implications of sales on foreign markets. Yet, prior literature leaves largely unanswered the question of performance implications of the SME’s geographical scope (i.e., the number of countries a firm operates in), which brings substantive benefits, like access to larger markets, but also major challenges in the governance of operations. Drawing on the contemporary perspective on internalization theory, we build a theoretical framework suggesting that the SME geographical scope has a positive impact on firm growth rate, yet making the latter less reliable. We also suggest that this relationship is highly context-dependent, with positive benefits of the increasing scope materializing only when the firm can manage the rising complexity of operational governance through leveraging the managerial international competencies (obtained, e.g., through international education) and constraining the geographical expansion to familiar regions. The framework is empirically tested on data from Swiss SMEs engaged in international operations, employing the multiplicative heteroscedasticity regression model specification with endogenously modeled scope.

Women's High Growth Entrepreneurship: Programs, Polices, and Practices

Herein, we offer a panel designed to engage in a lively discussion around women’s participation in high growth entrepreneurship, the various programs, polices, and practices that can foster high potential entrepreneurship, and what theoretical constructs might make a difference in understanding high-growth entrepreneurship among women. This panel symposium will have broad appeal across AOM divisions because of its focus on the wider entrepreneurship ecosystem through our gendered perspective on diversity issues. Our broad appeal also stems from our discussions on women’s access to venture financing and women entrepreneurs in the technology, biotech, and/or health care sectors. Our symposiums also compliments the 2020 theme of Broadening our Sight by addressing issues surrounding gender equity and opportunity, the challenges women face, and the high-growth potential women entrepreneurs have. Our panelists will discuss topics related to: 1) how high-growth women’s entrepreneurship fuels social and economic development, 2) programs, policies, and practices that can foster high-growth women’s entrepreneurship, 3) self-leadership strategies among high-growth female entrepreneurs as they innovate, 4) the democratizing effect of digital technologies to enable the internationalization of women-owned SMEs, and 5) regulatory efficiency and the employment growth ambitions of male and female entrepreneurs.

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.

Trade Shows and SME Internationalisation: Networking for Performance

Trade shows are a key vehicle where SMEs often develop networks, through which valuable resources for internationalisation can be acquired. However, there tends to be a scarcity of research on the performance outcomes of network development of international SMEs (ISMEs), particularly, in trade show forums. Adopting a network-based view, we investigate the influence of trade shows on the performance of ISMEs. Results from a survey of 229 Australian and New Zealand SMEs indicate that proactiveness is positively associated with the development of networks through trade shows, which, in turn, increases the firms’ operational performance, but not financial performance. In addition, the effect of trade shows is generally more beneficial for ISMEs in the service industry, compared to other industries.

Strategic decision-making processes, international environmental munificence and the accelerated internationalization of SMEs

Motivated by the paucity of studies examining the effects of strategic decision-making processes on accelerated internationalization, this study draws on the organizational information processing theory and the resource-based view of the firm to argue that procedural rationality and politicization have a negative effect on accelerated internationalization of SMEs. Using a sample of 176 internationalized Greek SMEs, the study finds that the procedural rationality and politicization of SMEs reduce the probability of accelerated internationalization. These relationships are more pronounced in munificent international environments, indicating that when accelerated internationalization is constrained by strategic decision-making processes, SMEs may miss opportunities in attractive international markets. The study contributes to the organizational information processing theory, to the literature on the speed of decisionmaking in SMEs, and to the literature on accelerated SME internationalization.

The nature of individual experiential knowledge in internationalizing SMEs: pitfalls of superstitious learning and the need for wisdom

PurposeThis study addresses the research question: How does the experiential knowledge, superstitious knowledge and the wisdom of CEOs influence the internationalization behaviour of SMEs?Design/methodology/approachAn exploratory qualitative study is used. Longitudinal case studies of two Swedish life science companies are analysed.FindingsAn individual's prior experiential knowledge influence the newly started SME's market commitments and internationalization behaviour. Such prior experiences can enable early and rapid resource commitments in the newly started SMEs. Relying upon such prior experiential knowledge in deciding upon the company's market commitments however heightens the risk of superstitious learning. The findings illustrate how wisdom can work as an antidote to superstitious learning. Wisdom lures even experienced CEOs away from believing they know more than they actually know.Research limitations/implicationsThe study contributes to extend the Uppsala model by incorporating the role of individual-level experiential knowledge. The study also adds value to the literature on small firm internationalization by providing propositions for how the prior knowledge of individual key decision makers influences SMEs' internationalization behaviour. The propositions provide new input to the ongoing discussion in the literature and help to guide future research.Originality/valueGiven the fact that the Uppsala model is centred upon a firm-level view on experiential knowledge, our theoretical understanding is still limited regarding how individual-level experiential knowledge influences the internationalization behaviour of SMEs. This study addresses calls for research on how individuals' prior knowledge influences small-firm internationalization.

SME Internationalization: A Descriptive Review of Nontraditional Approaches

The literature surrounding SME internationalization is still in its infancy but growing rapidly as SMEs become prominent in global markets. This paper outlines that, although stage theories of internationalization have dominated the literature in the past, newer theories deviate from this line of thinking. Notably, theories originating from the field of entrepreneurship, such as effectuation and bricolage, have been found to be quite informative in explaining the behaviour of SMEs, yet they are greatly underrepresented in the internationalization literature. Our study critically reviews the SME internationalization literature and highlights concepts such as resource scavenging, social capital, muddling through, and dynamic experimental internationalization – all reflective of a nontraditional pattern of thinking. These approaches explain the spontaneity and improvisation that is inherent in a lot of SME internationalization. We find that ‘nontraditional’ approaches to internationalization hold great value for both academics and professionals. Our findings reveal that many of the nontraditional approaches are still within the early stages of development, and thus require greater theoretical and empirical analysis. This study forms a foundational basis upon which future researchers can build a stronger understanding of nontraditional SME internationalization. For SMEs contemplating internationalizing, this study provides key insights into the complex process of engaging with foreign markets. Nontraditional approaches introduce strategies that SMEs can employ in both foreign market selection and foreign market entry processes.