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Small- and medium-sized enterprises (SMEs) face challenges in internationalisation due to their limited resources. Research on service firm internationalisation as well as the antecedents and consequences is scarce. Literature suggests that internationalisation for service firms is even more demanding than for manufacturing firms due to the characteristics of services such as intangibility. Extant literature states that firms introducing innovations are more likely to export. However, research on learning by exporting and thus investigating the effect of a firm’s export status on innovation is comparatively scarce. Therefore, the authors investigate the influence of different market entry strategies on innovation and firm performance. The authors employ a quantitative, survey-based approach to test our hypotheses based on a sample of internationally active firms headquartered in Austria. Regarding firm financial performance, the analysis of the data shows that the entry strategy of direct entry excels the direct export strategy. In terms of non-financial performance, the strategies of direct entry and direct export seem to be equally feasible.

This paper deals with the international expansion of manufacturing small- and medium-sized enterprises (SMEs) through the opening of retail outlets in foreign countries. The paper develops and discusses five research questions.

The paper discusses emerging data from the analysis of a database set up in recent years. In particular, it deals with 1,419 retail operations regarding 246 Italian fashion brands in 77 foreign markets during the period from 2005 and 2010.

The paper points out that retail operations are largely used by Italian fashion SMEs to internationalize. This form of entry in foreign markets is used to develop in both mature and emerging markets and it seems related to the brand potential of Italian fashion SMEs abroad.

The paper is limited to the case of Italian fashion brands and to the period 2005–2010.

The paper considers an unexplored area of the internationalization theory of SMEs, that of the development abroad through retail store openings. The paper offers insights on the extent to what this strategy is used by Italian fashion brands.

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.

The export entry behaviour of small and medium-sized enterprises (SMEs) is a complex behaviour that requires specific tools for a holistic investigation. Thus far, there are inconclusive findings in the literature on key predictors of export behaviour, which may be explained by methodological limitations. In this chapter, using a novel fuzzy-set qualitative comparative analysis for its ability to capture complex causality, the authors study the impact of managerial attributes and collaborative behaviours on SMEs’ export propensity. The analysis is based on a sample of 80 SMEs operating in the emerging country context of Turkey. Participants were selected using a non-probability sampling approach. For export propensity, it is found that no single driver is sufficient to facilitate SMEs’ export entry. Rather, a combination of managerial attributes including export knowledge, international orientation, entrepreneurial orientation and export perception is more likely to lead to export entry. Alternatively, the lack of some of these attributes could be offset by the presence of collaborative activities. Specifically, the shortage of export knowledge, international orientation and entrepreneurial orientation at any rate could be mitigated by collaborative activities. These findings hold important implications for SMEs and export promotion organisations in similar emerging contexts.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Succeeding in export markets remains a challenging task for small and medium enterprises (SMEs) operating in developing countries. Empirical studies from these regions on SMEs’ internationalisation remain scarce bringing contrasting evidence to those emerging from developed countries. To increase understanding on these issues, the present study adopts a novel fuzzy-set comparative analysis technique to investigate the combination(s) of different resource factors driving Algerian SMEs’ export performance. Using a sample of 103 exporters, the study identifies two distinct resource configurations likely to boost SMEs export performance. The present study holds important implications for the internationalisation literature and the export promotion organisations in developing countries.

In this chapter, we explore the effect of export exit on subsequent firm performance in a sample of 13,629 Belgian small and medium-sized enterprises (SMEs). We find that firms that stop exporting have lower profitability and profitability declines even further after they exit foreign markets. Firms that were highly dependent on revenues from exports and firms exiting multiple markets are more negatively affected, as reflected in lower post-exit survival rates and profitability. However, export duration or exiting institutionally distant markets does not have a significant impact on subsequent firm performance. Finally, although firm performance is negatively affected by exit, failed internationalization does not always lead to firm failure. Theoretical and practitioner implications are discussed.

Introduction: Small- and medium-sized enterprises (SMEs) play a vital role in the economic development of economies by generating job opportunities. Considering their significance, understanding the challenges and skills required in these enterprises becomes essential and timely.

Purpose: This study aims to discuss the limitations and skill gaps faced by SMEs in emerging economies, such as India, Indonesia, Brazil, China, Malaysia, Ghana, Hungary, Saudi Arabia, South Africa, Türkiye, UAE, Iran, Kazakhstan, Türkiye, Zambia, Romania, and Vietnam.

Methodology: The study adopts a systematic review and meta-synthesis approach, utilising a literature review to comprehensively analyse, synthesise, and map the existing literature by identifying overarching themes.

Findings: The study examines the challenges SMEs encounter in emerging economies, including resource scarcity, limited access to credit, inadequate infrastructure, low technology adoption, restricted global market access, and ineffective marketing strategies. There is a notable shortage of skilled labour and development initiatives within SMEs in India even though the country has a sizeable pool of qualified workers. There is a pressing need for additional technical and managerial skills to remain competitive in the market. The findings of this study will assist HR managers in addressing skill shortages among employees in SMEs operating within emerging economies

Micro-, small-, and medium-sized enterprise (MSME) sectors have a strong influence on the Egyptian economy. Yet, effective formulation of integrated cluster along the value chain can lead MSMEs to become international actors in export-oriented activities. An Agro-Industrial Park is an integrated cluster taking into consideration synergetic agglomeration of agribusiness MSMEs assisting in decreasing deprivation of rural territories. This research aims to present the needs of agriculture MSMEs in Egypt, to describe challenges faced by this specific sector, and to set guidelines for a business model integrating small farmers and producers into an integrated agribusiness cluster. The researcher followed purposive/nonprobability sampling technique of 100 MSMEs research participants. A combination of questionnaires and open-ended interviews were the research instruments of choice along with secondary data. This research focused on agribusiness only and specifically MSMEs in Egypt. There is no agribusiness-integrated cluster in Egypt, even though the agricultural land increased significantly in the past 5 years, leading us to believe that it is imperative to develop agribusiness-integrated clusters in the coming few years.

We link the exploration–exploitation framework of organizational learning to small- and medium-sized enterprises (SMEs) in a developing economy. SMEs in a developing economy generally lack abundant resources and capabilities because of an evolving set of industrial and environmental regulations. Studying two SMEs in China, we argue that their approaches to balancing exploration and exploitation depend on the development stages of the SMEs and their industrial and environmental contexts. In particular, we propose a four-stage framework that unfolds via initiation, innovation, transformation, and expansion. In this framework, SMEs balance exploration and exploitation by adopting temporal separation and organizational separation sequentially. We also find that SMEs may benefit from exploring a narrow scope of products and exploiting them in a wide market scope.