Supporting SMEs’ internationalisation through a deeper understanding of human and technology barriers: Applying effective HRM processes from a developing country

Abstract

Purpose

The purpose of this paper is to investigate small- and medium-sized enterprises’ (SMEs) internationalisation from an emerging market perspective. It explores and applies human resource management (HRM) processes to small businesses’ internationalisation efforts in order to ascertain the extent to which human- and technology-oriented barriers to internationalisation can be better understood and their processes better managed by SMEs.

Design/methodology/approach

The data collection and analysis involved a mixed method technique so as to identify the two dominant barriers faced by SMEs at the employer and employee levels. By using primary survey data obtained from 212 Bangladeshi SMEs, a partial least square based structural equation model was successfully validated and its development enhanced the comparison of processes involved in managing people and technology-type barriers.

Findings

The research results highlight the importance of HRM processes in the proper management of both human and technology-type barriers, which are equally as significant to SMEs’ internationalisation.

Practical implications

The results highlight the urgent need for governments in emerging economies to prioritise SMEs’ internationalisation and to dedicate resources and processes in order to effectively optimise economic and social dividends. The practical, theoretical and methodological implications of the paper raise opportunities for further research in SMEs’ internationalisation and people management processes and practices as well as new policy guidelines.

Originality/value

The examination of the link between humans and technology is a much under-represented area in developing countries and the actual contribution of effective HRM processes in the context of SMEs’ internationalisation is missing. Applying HRM processes to these aspects serves to deepen the knowledge of small businesses’ internationalisation efforts and the contributed model enhances professional practice and theory development in these disciplines and in emerging economies.

Citation

Mendy, J. and Rahman, M. (2019), "Supporting SMEs’ internationalisation through a deeper understanding of human and technology barriers: Applying effective HRM processes from a developing country", Journal of Organizational Effectiveness: People and Performance, Vol. 6 No. 4, pp. 205-226. https://doi.org/10.1108/JOEPP-12-2018-0121