Search results
1 – 10 of over 8000John Mendy and Mahfuzur Rahman
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…
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.
Details
Keywords
Despite the increasing number of small and medium enterprises pursuing international opportunities and penetrating global markets, international entrepreneurship literature has…
Abstract
Despite the increasing number of small and medium enterprises pursuing international opportunities and penetrating global markets, international entrepreneurship literature has paid limited attention to emerging markets and entrepreneur-specific factors that influence internationalisation. Traditional internationalisation theories and international entrepreneurship theories consider organisation as the unit of analysis and lack sensitivity to the context, which influences ventures’ foreign market decisions. Moreover, only a handful of studies related to internationalisation in emerging markets are available. To address this gap, this chapter explores barriers and drivers for SMEs’ internationalisation in Sri Lanka, an emerging market. Semi-structured interviews with forty Sri Lankan youth entrepreneurs suggest structural barriers consisting of access to capital, legal restrictions and lack of legal, institutional and government support were prominent. These barriers suggest a need for policy changes in the entrepreneurial environment, finance, entrepreneurial culture and skill development, technology, research and development and regional balance. The findings also indicate that information communication technology is a driver for internationalisation.
Details
Keywords
Ali Zamani Babgohari, Danial Esmaelnezhad and Mohammadreza Taghizadeh-Yazdi
Pressure on business to direct their activities responsibly has been increased during the last years to extent their suitability performance in all economic, social and…
Abstract
Pressure on business to direct their activities responsibly has been increased during the last years to extent their suitability performance in all economic, social and environmental dimensions. This has motivated businesses and researchers to identify ways to implement sustainable and resilient operations. In the era of economic globalisation, small and medium enterprises (SMEs) are recognised as an engine of sustainable economic development in both the developed and developing world. Their competitiveness drives the economy, both nationally and internationally. SMEs have faced challenges in developing, internationalisation and achieving competitive advantage. Purpose of current study is to identify and analyse the sustainability and resiliency (SR) barriers to SME internationalisation and prioritise the practices to overcome the negative influence of barriers. In this regard, first, barriers and innovative practices have been identified through the literature review. Second, the essential barriers will be selected through reduction steps by the intuitionistic fuzzy Delphi (IF-Delphi) method. After computing the weight of barriers through the IF-DEMATEL method, the practices were prioritised using four multiple attribute decision-making (MADM) methods in an IF environment. Finally, the scores were aggregated by correlation coefficient and standard deviation (CCSD) technique. Results present that ‘Lack of economical resources to global exports’ and ‘Complications in acclimatizing export product design’ are the top priority barriers and ‘Knowledge of global market opportunities’ and ‘Networking with business incubator institutions’ have been recognised as the essential SMEs internationalisation practices. This study contributes to creating a more focussed approach towards the growth of SMEs. The study results would be helpful for industry, policymakers and academia.
Details
Keywords
The purpose of this paper is to analyze the influence of determinants on early internationalization in the context of an emerging economy, i.e. India.
Abstract
Purpose
The purpose of this paper is to analyze the influence of determinants on early internationalization in the context of an emerging economy, i.e. India.
Design/methodology/approach
The study is based on an ex post facto exploratory research using primary data collected from a sample of 102 exporting small- and medium-sized enterprises (SMEs) in Bangalore.
Findings
The overall results reveal that it is the proactive entrepreneurs and their previous experience that determine the early internationalization of SMEs. Further, competitive constraint was a major obstacle to enter the international market at an early age for late internationalized SMEs.
Practical implications
The policy initiatives should aim to develop the international orientation of the entrepreneurs in the firm as a precursor for the formulation and subsequent implementation of internationalization strategies.
Originality/value
Although studies have been conducted on determinants and early internationalization, these are confined to a few dimensions, and none of the studies have looked into the issues affecting the early internationalization holistically and with respect to SMEs in India.
Details
Keywords
This chapter contributes to the ongoing debate about how digitalisation affects the internationalisation of small- and medium-sized firms (SMEs). By applying the Uppsala…
Abstract
This chapter contributes to the ongoing debate about how digitalisation affects the internationalisation of small- and medium-sized firms (SMEs). By applying the Uppsala Internationalisation Process model, this chapter examines the impact of e-commerce on the internationalisation of SMEs. The study uses a unique dataset, which includes 14,513 SMEs across several sectors in 34 countries. The results show that firms using the Internet as a means to provide information about the firm exhibit a higher degree of internationalisation, while using the Internet to facilitate transactions was found to have a positive impact on the ratio of foreign sales to the total sales; however, these foreign sales are likely to be concentrated in less regions/markets. Furthermore, perceived export barriers were found to be a significant moderator of the effects of e-commerce usage on international intensity and international diversification. This suggests that e-commerce does not automatically facilitate the internationalisation of SMEs.
Details
Keywords
Mahfuzur Rahman and John Mendy
People-related factors are very significant barriers for the internationalisation of large and small firms. Although the literature has identified a number of steps that SMEs need…
Abstract
Purpose
People-related factors are very significant barriers for the internationalisation of large and small firms. Although the literature has identified a number of steps that SMEs need to take to increase their resilience in international markets, a study that identifies both the resilience and non-resilience barriers for SME internationalisation has not been undertaken in the scientific fields Human Resource Management and International Business. This paper aims to examine resilience and non-resilience barriers faced by SMEs in a developing country. In addition to the resilience literature, they examine non-resilience and combine its characteristics with resilience barriers from the Bangladeshi context.
Design/methodology/approach
Quantitative data analysis technique is used in this study to identify the impacts of these resilience/non-resilience issues’ internationalisation of SMEs both from micro and macro levels. This study has used primary data collected through the questionnaires from 212 Bangladeshi SMEs. Based on the data, this study has developed and validated partial least square-based structural equation model to assess the impacts of resilience factors on the internationalisation of SMEs with particular attention to entrepreneurial attractiveness.
Findings
It has successfully framed resilience vs non-resilience barriers of the internationalisation of SMEs as a second-order hierarchical reflective model and found that internationalisation of SMEs is significantly influenced by the resilience factors where language and related socio-cultural issues are marginally more significant.
Research limitations/implications
A couple of limitations include the following. First, concentrating on resilience and non-resilience serves as a limitation as the authors could have had resilience vs other categories such political, economic, legal and technological barriers. Second, they have mainly used cross-sectional data by using the survey method. This study could have been better served had they also tried to combine the use of qualitative analysis as attempted elsewhere.
Practical implications
Practically, this study researched in an area which was neglected and under-reported by existing studies. Its exploration showed that it has potential to contribute significantly to the policymakers and implementers, as it comprises SMEs and emerging countries. It has been noted in the literature that these economies and firms are less capable to conduct research independently, as they are resource-constrained.
Social implications
The results reveal that both resilience- and non-resilience-related barriers are significant to SMEs internationalisation. However, if policymakers were to give priority to any one of these, they should give marginally more priority to resilience-type barriers compared to the non-resilience barriers to internationalisation.
Originality/value
To date, studies on resilience have concentrated on identifying challenges faced by firms and what types of behaviours are required by individual members so as to enhance survival. However, there are no studies so far on identifying or even modelling both resilience and non-resilience barriers within the context of SMEs internationalisation in developing countries. This study combines resilience and non-resilience factors in a model to find out their contribution especially in the under explored area of non-resilience from a Bangladeshi contextual perspective that seeks to encourage international entrepreneurship.
Details
Keywords
Karise Hutchinson, Emma Fleck and Lester Lloyd‐Reason
This paper is the result of empirical research funded by The British Academy. The overall purpose of the study is to investigate the initial barriers to internationalization…
Abstract
Purpose
This paper is the result of empirical research funded by The British Academy. The overall purpose of the study is to investigate the initial barriers to internationalization experienced and perceived by small retailers based in the UK and the role of government support in addressing such obstacles.
Design/methodology/approach
A qualitative, multiple case research design is adopted. This involves semi‐structured in‐depth interviews with the senior manager/decision‐maker in six retail SMEs based in the UK and the analysis of company documentation and information from a range of secondary sources.
Findings
The findings from the case study data highlight internal and external barriers to internationalization relating to management: lack of vision, fear of losing control, lack of knowledge; the company: transfer of retail concept overseas, lack of resources, lack of consolidation in domestic market; and the external environment: legislation, currency, cultural differences and logistics. The findings also highlight an overall negative experience and perception of government support in assisting smaller retailers to overcome these barriers and aid expansion outside the UK.
Originality/value
The findings of this study provide important insight into the perceived and actual barriers encountered by retail SMEs. On one hand, the focus on SMEs provides fresh evidence to the retail internationalization literature, which has focused primarily on the barriers faced by large multinational retailers. On the other hand, the context of this study, yields new insight into research conducted in the field of SME internationalization, which has to date ignored smaller firms in the retail industry. The findings of this study also allow for recommendations to be made to both owner‐managers and government organizations.
Details
Keywords
Constanza Bianchi, Jorge Carneiro and Rumintha Wickramasekera
Enhancing firm commitment towards internationalisation is an important step towards ensuring successful international performance. However, there is limited research on this topic…
Abstract
Purpose
Enhancing firm commitment towards internationalisation is an important step towards ensuring successful international performance. However, there is limited research on this topic for emerging market firms. The purpose of this paper is to investigate the factors that influence the internationalisation commitment of emerging market firms located in two Latin American countries with different institutional environments.
Design/methodology/approach
This study proposes and tests a conceptual model that includes drivers and barriers of internationalisation commitment. Data were collected from Chilean and Brazilian firms. The model uses confirmatory factor analysis to develop the underlying multi-item constructs and structural equation modelling to test the model.
Findings
The results show that managers’ perceptions of firm resources and capabilities are significant drivers of internationalisation commitment in both countries. In addition, perceptions of internal firm-specific barriers, such as a manager’s lack of international experience and knowledge, are negatively related to internationalisation commitment in Chile, but not in Brazil. Finally, external environmental barriers are negatively related to internationalisation commitment in Brazil, but not in Chile.
Practical implications
The context for the study is Chile and Brazil. Both are important emerging markets in Latin America, with a strong focus on firm internationalisation. The research design is cross-sectional and so does not allow for any causal claims to be made. The findings have important implications for internationalisation efforts of managers and export promotion agencies of emerging markets with different institutional environments.
Originality/value
This research contributes to the relatively scant but increasing number of empirical studies which investigate emerging market internationalisation in Latin America.
Details
Keywords
Using data from a survey of a stratified random sample of 900 internationalising firms carried out in 2008, this chapter examines the barriers to internationalisation faced by…
Abstract
Using data from a survey of a stratified random sample of 900 internationalising firms carried out in 2008, this chapter examines the barriers to internationalisation faced by young innovative SMEs. The results indicate that young technology-intensive firms are more likely than non-technologically intensive firms to report barriers to internationalisation. When compared with the whole sample, young technology-intensive SMEs are significantly more likely to experience difficulties in obtaining basic information about doing business in an overseas country, and with the costs of doing business overseas. Factor analysis suggests that young technology-intensive SMEs which internationalise through non-traditional modes differ with regard to their perceptions of barriers to internationalisation from those who sell directly to customers overseas.
Details
Keywords
Teresa Fayos Gardó, Haydeé Calderón García and Alejandro Mollá Descals
The need for retailers to internationalize is a growing reality in developed markets. Research examining problems in this process argues that the barriers to internationalization…
Abstract
Purpose
The need for retailers to internationalize is a growing reality in developed markets. Research examining problems in this process argues that the barriers to internationalization should be studied based on the situation in each country, and that public organizations which implement policies to support internationalization do not always adapt to company needs. The purpose of this paper is to contribute to the limited existing research on the subject of Spanish retail internationalization, analysing the problems faced by SMEs and the role of public support organizations in helping them.
Design/methodology/approach
By means of in-depth interviews with experts, the authors first, analysed the barriers faced by Spanish retailers in their internationalization processes, and found a predominance of endogenous as opposed to exogenous barriers. Second, the authors studied the appropriateness of support policies for retail needs and identified a significant mismatch.
Findings
Results show that the current international economic climate and restricted access to financing, combined with the small size of retailers, their lack of experience in internationalization processes, and the potential that still remains in the local market, are an inducement not to venture into other markets. Additionally, there is a lack of awareness on the part of public organizations about the reality and needs of the retail sector. In addition, the study of retail internationalization as a discipline seems to be in constant flux.
Research limitations/implications
It would be pertinent to consider the findings in the light of a number of limitations of the study. The sample did not consist of retailers but its representatives. The reliance upon a single nation sample could also be viewed as a limitation.
Practical implications
The authors provide Spanish retailers with ideas about the problems they are facing which they will find useful as a starting point for strategic thinking about their internationalization prospects.
Social implications
As for Spanish promotion organizations, they should consider the results of this research and further study the needs of retailers in their internationalization processes while also identifying which companies have the greatest potential for operating in foreign markets.
Originality/value
It is the first time a research for Spain is conducted that highlights the needs of developing a plan to support the internationalization of the retail sector and provide specific lines of action.
Details