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1 – 10 of over 5000This paper aims to understand how government support initiatives can enhance the international performance of small and medium-sized enterprises (SMEs). To address the gap of…
Abstract
Purpose
This paper aims to understand how government support initiatives can enhance the international performance of small and medium-sized enterprises (SMEs). To address the gap of literature, this paper employed three theoretical lenses to examine both of direct and indirect relationships between two main constructs.
Design/methodology/approach
This empirical study is based on data collected from Armenian exporter SMEs. The data collection utilized a random sampling approach, resulting in 138 fully completed questionnaires, yielding a response rate of 28.4%, comparable to previous studies in international business research. This sample includes firms from three main sectors: agriculture, manufacturing and services, reflecting the structure of Armenia's international trade. Relationships were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM).
Findings
The results of this study indicate that government support initiatives lack a direct impact on international performance, while positing instead an indirect connection between the two constructs through strategic capability and institutional pressures.
Originality/value
The results of this study contribute to the international business literature in several ways. First, it surpasses the conventional examination of government support on firm performance by delving into both the direct and indirect relationships between these constructs. Second, it reveals that not all theoretical viewpoints hold equal strategic importance in explaining the internationalization of SMEs. From the practical point of view, findings help policymakers to maximize a country's export capacity by implementing tailored initiatives, considering the unique requirements of SMEs.
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Hsing-Hua Stella Chang, Cher-Min Fong and Min-Hua Chang
Empirical evidence of the value creation process through which internationalizing small and medium-sized enterprises (SMEs) develop international branding capability (IBC) to…
Abstract
Purpose
Empirical evidence of the value creation process through which internationalizing small and medium-sized enterprises (SMEs) develop international branding capability (IBC) to build a value-creating brand in international markets is incomplete. This research aims to investigate a theoretical framework for the determinants and outcomes of IBC in internationalizing SMEs.
Design/methodology/approach
Using surveys of 519 internationalizing SMEs, this research empirically verified the antecedents to and effects of IBC on SMEs’ value creation, which thus translates into superior performance. Furthermore, this research explores contextual factors influencing the value creation process in SME internationalization.
Findings
Findings show that SMEs with strong international marketing resource orchestration (IMRO) and relational capability are more competent in developing IBC, which assists resource-constrained SMEs to create value, as manifested through international brand equity (IBE) and improved international performance. Moreover, environmental uncertainty enhances the interplay between IMRO, relational capability, and IBC, while new entrant pressure strengthens the relationship between IBC and IBE, and price competition pressure magnifies the impact of IBE on international performance.
Originality/value
Our study pioneers conceptualization of the value creation process through which SMEs develop IBC to build value-creating brands in international markets, overcoming the liabilities of smallness and outsidership.
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Ali Daei, Seyed Mahmood Zanjirchi, Seyed Habibolah Mirghafoori and Alireza Naser Sadrabadi
The varying nature of the competitive environment of small- and medium-sized enterprises (SMEs), contributing significantly to gross domestic product in most countries, has made…
Abstract
Purpose
The varying nature of the competitive environment of small- and medium-sized enterprises (SMEs), contributing significantly to gross domestic product in most countries, has made their moving toward internationalization and global competition unavoidable in such a way that the life cycle of research in this area is experiencing a period of rapid growth. This study aims to evaluate the status of research on SME internationalization based on bibliographic records retrieved from the Web of Science Core Collection and Scopus.
Design/methodology/approach
Using a scientometric analysis, reviewing the important points and the boundaries of research on SME internationalization as well as practicing co-occurrence and burst detection analysis.
Findings
Through a rigorous examination of the crucial points and boundaries within the realm of SMEs internationalization research, coupled with an analysis of co-occurrence and burst detection techniques to detect contemporary hotbed topics, this study has uncovered that the predominant focus of current discourse centers around the areas of networks and networking, as well as internationalization models and entry into the global arena. Moreover, it gives insight that future investigations will shift toward enhancing SME internationalization performance, while simultaneously prioritizing the expeditiousness of their entrance into international markets. The insights garnered from this inquiry are expected to facilitate salient contributions to future literature in this area, thereby advancing our understanding of these complex phenomena.
Practical implications
The trend of the research in this field can be useful for enthusiasts. In this context, the life cycle of research on SME internationalization has been drawn that shows the period of research growth of publications is almost between 2005 and 2023, and the saturation will be approximately from 2023 to 2035. The top researching SME internationalization in the world have been occurred in the USA, England, Canada, Sweden countries and in Department of Management, Department of Marketing, School of Management, Faculty of Management Studies institutions. Also, most of the research has been published in Journal of International Business Studies, International Business Review and Strategic Management Journal.
Originality/value
This study accordingly provided a valuable perspective for future research in this line.
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Grisna Anggadwita, Nurul Indarti, Paresha Sinha and Hardo Firmana Given Grace Manik
Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid…
Abstract
Purpose
Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.
Design/methodology/approach
This study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.
Findings
This study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.
Originality/value
This study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.
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Abstract
Purpose
This study aims to explore the effect of collaboration networks (domestic and international collaboration networks) on the innovation performance of small and medium-sized enterprises (SMEs). It also investigates the mediating role of business model innovation, the moderating role of entrepreneurial orientation and government institutional support between them.
Design/methodology/approach
Hierarchical regression analysis is adopted to test the hypotheses based on survey data provided by 223 manufacturing SMEs in China.
Findings
The results reveal that domestic and international collaboration networks positively affect SMEs' innovation performance. Business model innovation mediates domestic and international collaboration networks-SMEs’ innovation performance relationships. Entrepreneurial orientation positively moderates international collaboration networks–SMEs’ innovation performance relationship, and government institutional support positively moderates domestic and international collaboration networks–SMEs’ innovation performance relationships.
Practical implications
The findings indicate that managers of SMEs should invest in domestic and international collaboration networks and business model innovation to enhance SMEs' innovation performance. Moreover, entrepreneurial orientation and government institutional support should be valued when SMEs try to enhance their innovation performance by embedding in domestic and international collaboration networks.
Originality/value
This study broadens the authors' understanding of the relationship between collaboration networks and firms' innovation performance by classifying collaboration networks into domestic and international dimensions and investigating their direct impacts on SMEs' innovation performance. Besides, this study reveals how and when domestic and international collaboration networks influence the innovation performance of SMEs.
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Katerina Kampouri and Yannis Hajidimitriou
This study aims to address two research questions: Do the decision modes on foreign partner selection post-entry vary between different types of family small and medium…
Abstract
Purpose
This study aims to address two research questions: Do the decision modes on foreign partner selection post-entry vary between different types of family small and medium enterprises (SMEs)? How does socio-emotional wealth (SEW) affect (if so) decision modes in international partnership post-entry decisions (e.g. engagements with or changes of international partners) in different types of family SMEs?
Design/methodology/approach
This study employs a qualitative case study design of different types of family SMEs, namely, one family firm with a high level of family involvement in the internationalisation activities of the firm (FMH) and one family firm with a low level of family involvement in the internationalisation activities of the firm (FML).
Findings
The case study evidence indicates different decision modes on foreign partner selection post-entry in the investigated family SMEs: a bounded rationality mode in the FMH firm and a real option reasoning in the FML firm. The bounded rationality mode was linked with the appearance of SEW goals in the FMH firm, which in turn led to foreign partner engagements resulting also in a low speed of internationalisation growth. In contrast, the real option reasoning mode in the FML firm was not linked with SEW goals, and it led to international partner changes, resulting in a speedier internationalisation growth.
Originality/value
This study unearths the case that different types of family SMEs can employ different decision modes in their international partnerships, whereas SEW tendencies do not always appear.
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Matilde Milanesi, Andrea Runfola and Simone Guercini
The paper delves into the international expansion of luxury SMEs to investigate their internationalization pathways, namely how the internationalization process unfolds in terms…
Abstract
Purpose
The paper delves into the international expansion of luxury SMEs to investigate their internationalization pathways, namely how the internationalization process unfolds in terms of timing of entry into foreign markets, the geographic scope of operations and the scale. The paper examines also the determinants of the internationalization pathways as a set of factors that contribute to developing an asset of foreignness.
Design/methodology/approach
The paper adopts a multiple case study approach and reports findings from four cases of Italian SMEs operating in the luxury fashion industry.
Findings
SMEs’ specific characteristics at the firm and entrepreneurial levels (i.e. craftsmanship, quality, product creativity, entrepreneurial mindset), country of origin attributes (e.g. Italy’s positive image) and the inherently global nature of the luxury industry, can turn foreignness into an asset of foreignness that allows luxury fashion SMEs to pursue internationalization pathways of born globals.
Originality/value
The paper highlights that the global luxury market is not the exclusive domain of MNEs and sheds light on luxury SMEs, overlooked by extant literature. The paper also contributes to understanding early internationalization by highlighting a potential link between internationalization pathways and foreignness and discussed the asset of foreignness by extending it to SMEs.
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Augusto Bargoni, Alberto Ferraris, Šárka Vilamová and Wan Mohd Hirwani Wan Hussain
The purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an…
Abstract
Purpose
The purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an enabler for their internationalisation process and as a comprehensive view of the specific domains impacted by digital technologies as well as their repercussions on the international outreach.
Design/methodology/approach
A systematic review which leverages a descriptive analysis of extant literature and an axial coding technique has been conducted to shed light on the current knowledge and to identify primary research areas and future research lines.
Findings
The research indicates that digitalisation impacts the internationalisation of SMEs in three specific domains: (1) internationalisation through the adoption of information and communication technologies (ICT) technologies and e-commerce platforms; (2) international expansion through the digitalisation of value chain activities and (3) international outreach through knowledge acquisition on digital platforms.
Originality/value
The value of this study is threefold. First, the authors attempt to systematically review the literature on SMEs digitalisation and internationalisation and provide a holistic perspective on the intertwining of these two research streams. Second, the authors propose a novel conceptualisation on the dimensions of SMEs digitalisation as enablers to internationalisation. Third, the authors put forward promising future lines of research.
Highlights
Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.
Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.
Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.
Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.
SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.
Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.
Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.
Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.
Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.
SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.
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Masoud Karami, Ben Wooliscroft and Lisa McNeill
International entrepreneurship and marketing research reports the impact of effectual decision-making logic on small and medium-sized enterprises (SMEs) international performance…
Abstract
Purpose
International entrepreneurship and marketing research reports the impact of effectual decision-making logic on small and medium-sized enterprises (SMEs) international performance. How the effectual logic of decision-making enhances the overall performance of SMEs in international business-to-business markets remains a puzzle in the field. The purpose of this study is to investigate the concept of networking capability as an important SME capability translating effectual decision-making into international performance.
Design/methodology/approach
The authors examine the model presented in this study using quantitative data from 153 founders or managers in charge of international business at SMEs throughout New Zealand. The authors also used 142 open-ended responses to provide post hoc exploratory analysis.
Findings
The findings of this study suggest that networking capability is a mechanism through which the logic of decision-making enhances the international performance of SMEs.
Originality/value
This study bridges between international marketing and entrepreneurship by investigating how the networking capability of internationalizing SMEs translates their founders’/managers’ effectual logic into a successful performance in international business-to-business markets.
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Alireza Safargholi, Faezeh Yousefzadeh, Mehran Rezvani, Taraneh Farokhmanesh, Mohammad Hassan Mobaraki and Jahangir Yadollahi Farsi
Small and medium-sized enterprises (SMEs) are highly concerned about every aspect of their international performance (IP) due to their limited resources. However, the literature…
Abstract
Purpose
Small and medium-sized enterprises (SMEs) are highly concerned about every aspect of their international performance (IP) due to their limited resources. However, the literature has not given equal attention to every necessary aspect and has left some fields unexplored. Moreover, different approaches to assessing SME IP have made the literature even more fragmented. This research aims to identify the gaps in the research context and assessment methods of this concept.
Design/methodology/approach
A systematic literature review and a thematic analysis method are employed to review 272 journal papers published in high-quality journals.
Findings
By extracting six contexts in which the concept of international performance of SMEs has been analyzed, this study integrates the research themes with geographical domains and highlights which contexts require more attention. Moreover, this study provides a comprehensive review of the current state of this concept’s operationalization methods, illustrating the level of fragmentation and differences in the literature. Following the presentation of an enriched future research agenda, this study guides scholars on the current gaps and needs for research in specific contexts and domains while providing suggestions for a more cohesive assessment of the concept.
Originality/value
This study is the first to systematically review the research concerning the foreign performance of firms with less than 500 employees, extract their research context, illustrate uninvestigated fields and provide helpful suggestions about the concept’s operationalization method based on a comprehensive review of the extant assessment methods.
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