The Internationalization of SMEs and International Entrepreneurship: A Critique and Policy Implications

Regional Studies (Impact Factor: 2.07). 10/2007; 41(7):1013-1030. DOI: 10.1080/00343400601120288
Source: OAI


Practitioners are seeking to provide a supportive environment for growing ventures. An important policy challenge is the provision of support for small and medium-sized enterprises (SMEs) seeking to internationalize. To guide practitioner resource allocation decisions, recent conceptual and empirical developments relating to SME internationalization are discussed. An international entrepreneurship perspective is presented as a counterpoint to the established internationalization perspectives, which may have guided practitioner understanding of the aspirations and needs of SMEs. The emerging international entrepreneurship perspective relating to SME internationalization is critically reviewed with regard to the following seven themes: the timing of internationalization; the intensity and sustainability of internationalization; the mode of internationalization; the influence of the domestic environmental context on internationalization; the leveraging of external resources to internationalize; the unit of analysis (i.e. the firm or the entrepreneur); and the effect of internationalization on SME performance. Assuming an interventionist stance, a case for more balanced policy support towards SME internationalization is suggested that takes into account the diversity of SMEs (and entrepreneurs) that operate, or are capable of operating, in foreign markets. Implications for policy and researchers are presented.

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    • "Thus, although some small and new ventures tend to focus first on nearby markets because of lower risks and other issues (see e.g. Hashai and Almor, 2004; Wright et al., 2007), throughout this article we shall focus on new ventures and small firms which, in their attention to large markets, have had increased sales in mind. Additional complexity is introduced when large markets are in distant locations. "
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    ABSTRACT: More often than one might expect, small and new ventures, which already suffer from few resources and a lack of industry legitimacy, take on the additional uncertainties of entry into foreign markets. Some of these foreign entries involve countries that are geographically distant and culturally different from the firm’s home country, making foreign market entry all the more difficult and uncertain. Recent studies have criticized prior academic approaches to understanding these difficulties. Insights may be limited if one uses merely the concept of distance and looks primarily for main effects. Entry by new and small ventures into distant foreign markets is complex, and the factors influencing it are interactive. The aim of this conceptual paper is to contribute to an understanding of the stability of the distance factors, and also the interactive effects between distance factors, market attractiveness, and network relationships, with particular attention to small and new ventures.
    Full-text · Article · Mar 2015 · International Business Review
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    • "Moreover, Ruzzier et al. (2007) concluded that international orientation of entrepreneurs predicted local human capital development. Wright et al. (2007), also suggest individual entrepreneurs may accumulate higher levels of general human capital through previous international experience. "
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    ABSTRACT: Notice This is the author’s version of a co-authored work published in Review of Managerial Science. Gittins, T., Lang, R., Sass, M. (2015). The effect of return migration driven social capital on SME internationalisation: a comparative case study of IT sector entrepreneurs in Central and Eastern Europe. Review of Managerial Science, 9(2): 385-409. © 2015 Springer Changes introduced as a result of copy-editing, formatting and other publishing processes may not be reflected in this document. For a definitive version of this work, please refer to the published source: Transition to a market-based economic structure in the post-Communist countries of the CEE (Central and Eastern Europe) region since the early 1990s has been accompanied by intense IT-driven technological change. Internationalisation opportunities have emerged for IT sector SMEs (Small and medium sized enterprises) based on the region’s strong possession of technical skills. However, while enhanced SME internationalisation is desirable in policy terms, the current socio-economic transitional context of the region is not compatible with a highly competitive global business environment. While transition has facilitated outward migration, return migrants who acquire social capital abroad and establish businesses upon return home may positively influence entrepreneurship, organisational human capital and SME internationalisation in the CEE region. This chain of phenomena remains relatively unresearched in a CEE context, hence this article presents an initial attempt to address it. A process-oriented qualitative case study approach is used to compare the experience of three IT sector entrepreneurs in Hungary who previously worked and studied abroad. Primarily, the acquisition of social capital from abroad is crucial for re-configuration of organisational human capital at home in order to drive ‘born-global’ SME internationalisation. This study therefore provides a basis for further empirical investigation of the overall transformative effect of individual return migrant entrepreneurs upon organisational human capital re-configuration and ensuing SME internationalisation. Additionally, policy suggestions are derived for development of international entrepreneur exchange programmes to enhance social capital development and human capital re-configuration in local innovative SME sectors.
    Full-text · Article · Mar 2015 · Review of Managerial Science
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    • "19 Post quota regulatory structure: on the global level, recent studies elucidate that regulatory framework as one of the important barriers to be considered. It considers significant role of tax rates, tax administration and corruption in the internationalisation process and demonstrate the importance of institutional factors for SMEs from developing economies (Wright et al., 2007; Shirokova and Tatyana, 2013). "
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    ABSTRACT: India is traditionally identified as a manufacturing hub. It is well known for its heritage and skill sets in its textile business. The phase out of multi-fibre agreement (MFA) has impacted a dynamic turn over in the market with tough competitions from other hubs. The players are having barriers to sustain and project as a potential hub. The paper tries to establish the contextual relationship among the various barrier points in the expansion of garment manufacturing SMEs in the global arena. Factors are modelled with the technique called interpretive structural modelling (ISM) by incorporating qualitative judgments from the views of Indian manufacturers, who are the suppliers to leading global brands. The aim of this paper is to categorise and analyse the dependence power as well as driving power of those barriers using MICMAC analysis and to give a different dimension to the post-MFA impact research on the Indian apparel SME domain.
    Full-text · Article · Jan 2015 · International Journal of Business and Globalisation
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