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Article
Publication date: 4 October 2021

Marcelo André Machado and Viviane Bischoff

This paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that…

Abstract

Purpose

This paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.

Design/methodology/approach

The authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).

Findings

The results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.

Practical implications

Managers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.

Originality/value

Research on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 11 November 2014

M. H. Bala Subrahmanya

This paper probes the factors which influence (i) the degree of internationalization and (ii) the subsequent economic performance, achieved by SMEs in India. These two objectives…

Abstract

Purpose

This paper probes the factors which influence (i) the degree of internationalization and (ii) the subsequent economic performance, achieved by SMEs in India. These two objectives have been examined in the context of firm level push/pull factors, barriers/challenges, firm resources, and strategy.

Design/methodology/approach

This study is based on empirical data gathered through a semi-structured questionnaire from 84 exporting SMEs in the (most internationalized) engineering industry of Bangalore in India during January 2012 to February 2013. The two key research questions have been analyzed using stepwise multiple regression models. The degree of internationalization is defined as the percentage of foreign sales in total sales turn over, as of 2010/2011, and economic performance is represented by (i) the value of sales turnover as of 2010/2011, and (ii) growth of sales turnover from inception till 2010/2011, alternatively. Firm level variables (age of firms, firm size, nature of firm organization), entrepreneurial characteristics (age of the founder and education), time taken to enter the export market for the first time, mode of entry, degree of initial internationalization, years of experience in the international market, whether operated in the international market continuously or not, number of markets currently exported, and number of learnings made are used as the possible explanatory factors for the first objective. In addition, current degree of internationalization is used as the possible explanatory factor for the current level of economic performance whereas initial degree of internationalization for the growth of sales turnover.

Findings

It is firm age, size and experience, and education of the CEO which influenced the degree of internationalization of SMEs. In addition, continuous operation in the international market after an early entry, leading to more learnings positively influenced the degree of internationalization. Further, those who adopted the MNC route as the mode of entry achieved a higher degree. However, what is more significant is the degree of initial internationalization achieved by the SMEs which had strongly influenced its current degree of internationalization. All these bring out that (i) firm level resources & competence and (ii) firm level strategy, together significantly contributed to the degree of internationalization achieved by the SMEs in an emerging economy like India. However, the degree of internationalization had a negative influence on the current sales turnover achieved. Whereas those SMEs, older in age, organized as private limited companies and led by more qualified CEOs, which catered to more number of countries could achieve a higher sales turnover. But degree of internationalization did not have any influence on firm growth. Only younger and smaller firms grew faster than older and larger firms, irrespective of the degree of internationalization.

Research implications

The above results bring out that to achieve a larger firm size, entering the international market need not be the only route, in the current era of globalization. It is possible to achieve a higher economic performance even with a domestic market focus, especially when the domestic market is registering a higher growth compared to the international market.

Originality

The degree of internationalization and its impact on the economic performance of SMEs have been hardly probed adequately based on empirical data in the context of emerging economies. This study fills this void. It reveals that in the era of globalization where domestic firms might have to face competition though not as much as those which operate in the international market, a larger firm size can be achieved with larger focus on the domestic market and with limited focus on the international market.

Details

Emerging Market Firms in the Global Economy
Type: Book
ISBN: 978-1-78441-066-7

Keywords

Article
Publication date: 14 November 2023

Wensong Bai, Mikael Hilmersson, Martin Johanson and Luis Oliveira

The authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market…

Abstract

Purpose

The authors seek to advance the understanding of small- and medium-sized enterprise (SME) internationalization at the regional level and examine the role of home market institutions in this process.

Design/methodology/approach

The authors analyze hypotheses with data from SMEs in five country markets and from the Global Entrepreneurship Monitor. A cluster analysis establishes the regional diversification patterns (based on regional diversification scope, speed and rhythm) and a multinomial regression tests the effect of home market institutions on their adoption.

Findings

The results offer a refined picture of SME regional diversification by revealing three patterns: intra-regionally focused firms, late inter-region diversifiers and early inter-region diversifiers. They also suggest that the adoption of these patterns is determined by SMEs' home market institutions.

Originality/value

The authors develop a nuanced understanding of SME internationalization by building upon and expanding the regionalization rationale in the internationalization patterns literature. Additionally, the authors address the acknowledged, yet rarely investigated, country-level determinants of internationalization patterns.

Details

International Marketing Review, vol. 41 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 27 July 2021

Mahfuzur Rahman, Dieu Hack-Polay, Sujana Shafique and Paul Agu Igwe

Internationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between…

693

Abstract

Purpose

Internationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.

Design/methodology/approach

Using primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.

Findings

The results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.

Originality/value

Despite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 July 2015

Juan Gabriel Brida, Oana Madalina Driha, Ana B. Ramón-Rodríguez and Raffaele Scuderi

This paper aims provides an empirical analysis of the development of the internationalisation process in the Spanish hotel industry, which has experienced major changes during the…

1763

Abstract

Purpose

This paper aims provides an empirical analysis of the development of the internationalisation process in the Spanish hotel industry, which has experienced major changes during the past decade. The degree of internationalisation between 2000 and 2010 is used as a proxy variable with the aim of mapping the development of international strategies.

Design/methodology/approach

A longitudinal dataset measuring the internationalisation of Spanish hotel chains is used. Cluster analysis identifies the different behaviour of groups of firms during the analysed period.

Findings

Two different clusters are detected, which can be attributed to different internationalisation strategies over time. Small and medium (SME) hotel companies seem to follow a different path of development than more established multinational companies. Over time, the entire group tends to be more compact, whereas the distance between the clusters is shown to diverge in final years. The groups’ composition suggests that business-networking relationships can be a strategy of particular importance for SMEs pursuing international expansion.

Practical implications

This paper develops a better understanding of the changes of the internationalisation patterns of Spanish hotel chains. Findings could address managers in strategic decisions about how to improve competitive position. In particular, they recommend accounting for size, international experience and business network relationships when expanded abroad.

Originality/value

This paper introduces a new approach based on studying clusters of Spanish hotels according to their internationalisation strategies over the time. Further analysis revealed the role of business network on internationalisation patterns.

Details

International Journal of Contemporary Hospitality Management, vol. 27 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 5 June 2023

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.

Details

Competitiveness Review: An International Business Journal , vol. 34 no. 2
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 13 July 2015

Bo Rundh

The purpose of this paper is to investigate the international market development process in small- and medium-sized exporting firms (SMEs) and to examine the influence of…

2789

Abstract

Purpose

The purpose of this paper is to investigate the international market development process in small- and medium-sized exporting firms (SMEs) and to examine the influence of “unexpected market events” in relation to actual market activities.

Design/methodology/approach

The discussion is illustrated with a multiple case study. The data in the cases were collected by using secondary data, but also through face-to-face interviews with export executives in the firms. The cases for this research were selected on the basis of suggestions from the Swedish Export Council who applied their own interpretations of firms that have shown rapid export development.

Findings

SMEs are becoming more involved in international activities and exhibiting market behaviours not previously seen. The recognition that internationalization is affected by multiple influences has led to a growing interest in contingency approaches. The findings in the study are illustrated by a typology of international market behaviour.

Research limitations/implications

The study is limited to a few exporting firms within the manufacturing industry so the results of the study can only be tentative.

Practical implications

The number of SME firms operating in international markets has grown. The findings in this paper emphasize the importance of the fact that management has the interest, experience and commitment necessary for international activities.

Originality/value

The interest in the study is focused on capturing the steps in the development process that diverts internationalization in a firm from the traditional path of exporting in SMEs. The multiple case studies illustrate the fact that unexpected market events can influence the firm’s marketing behaviour and the international marketing strategy.

Details

Management Decision, vol. 53 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 10 September 2018

Pervez N. Ghauri and Ulf Elg

Several studies have proposed that small- and medium-sized enterprises (SMEs) lack resources and experiential knowledge to internationalise to distant markets. The authors argue…

Abstract

Several studies have proposed that small- and medium-sized enterprises (SMEs) lack resources and experiential knowledge to internationalise to distant markets. The authors argue that SMEs can handle the lack of these tangible and intangible internal resources through external collaborations; they can achieve success in international markets by collaborating with business partners. The role of inter-firm marketing collaboration and its impact on internationalisation efforts has not been thoroughly studied, particularly in the context of SMEs. This study will thus advance our understanding of SMEs’ inter-firm marketing collaborations and how they influence performance in international markets. In this chapter, authors conceptually develop this line of arguments through an extensive literature review and develop some hypotheses and a framework that can be empirically tested. The authors believe this framework will serve as a starting point for further studies on this topic. Theoretically, we endeavour to contribute by showing that firms can enhance their level of international performance through inter-firm collaboration. The authors believe this type of study would have considerable theoretical as well as managerial implications in this important field of research.

Details

Key Success Factors of SME Internationalisation: A Cross-Country Perspective
Type: Book
ISBN: 978-1-78754-277-8

Keywords

Article
Publication date: 29 April 2014

Syed Zamberi Ahmad

The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of…

1826

Abstract

Purpose

The purpose of this paper is to investigate the international business strategy, key driving factors and the major barriers that may hinder the internationalisation progress of Malaysian small and medium-sized enterprises (SMEs).

Design/methodology/approach

Based on the aims of the study, the paper encompasses both quantitative and qualitative data. For quantitative data, structured questionnaires were used, and a total of 216 SMEs that engaged in international business participated using purposeful sampling, covering all the states in Peninsular Malaysia. For the collection of qualitative data, the study involved in-depth interviews with 25 owners/managers of SMEs.

Findings

The findings indicate that the motives of SMEs for international expansion are varied, and that SMEs still face many institutional challenges, which have prevented them from making a greater contribution.

Research limitations/implications

Due to lack of resources, firms from West Malaysia were included. West Malaysian firms may well possess characteristics concerning the challenges and issues to internationalisation that are unique to their region.

Originality/value

The paper addresses a knowledge gap in respect of the internationalisation process of SMEs in the context of Southeast Asia. The findings of this paper will have relevance for policymaking and supportive measures at the government level to create an environment that will stimulate the competitiveness of SMEs in their attempts for internationalisation.

Details

Journal of Asia Business Studies, vol. 8 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 27 April 2010

Andrew McAuley

The purpose of this paper is to analyse the past decade's research into small‐ and medium‐sized enterprises, internationalisation 1999‐2009 and compare the findings to a previous…

1636

Abstract

Purpose

The purpose of this paper is to analyse the past decade's research into small‐ and medium‐sized enterprises, internationalisation 1999‐2009 and compare the findings to a previous review 1989‐1998 to see if research directions suggested then have been followed or not.

Design/methodology/approach

This paper presents observations from a content analysis of papers fitting key criteria and comparing conceptual, empirical and methodological approaches.

Findings

Progress has been made in some areas, for example, global and cross‐cultural coverage, multi‐sector and multi‐method approaches but in other ways there is more work to be done, for example, relevance to policy makers and longitudinal studies.

Research limitations/implications

This work evaluates the contribution of relevant work 1999‐2009 and once again sets challenges for future research directions.

Practical implications

The review provides a research agenda for the future.

Originality/value

The value is in the reflective nature of the approach to the topic and in attempting to highlight success and failure from the literature in the last ten years.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 12 no. 1
Type: Research Article
ISSN: 1471-5201

Keywords

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