Analyzing Export Behavior Through Managerial Characteristics and Perceptions: A Multiple Case-Based Research

ABSTRACT

The decision-maker's role in international activity is crucial, particularly in the case of small- and medium-sized enterprises (SMEs). However, the extant literature on internationalization is characterized by a lack of consensus among scholars as to what constitutes the managerial factor in determining exporting. Therefore, this study focuses on the following issue: Which are the decision-maker's characteristics and perceptions that may influence the export behavior of SMEs? To address this main research question, a multiple-case study method is applied across four Spanish exporting SMEs. The findings show that high educational level, language skills, high-risk tolerance, innovativeness, as well as strongly perceived export stimuli compared to low and relatively easy to overcome export barriers positively influence the export involvement and development in these investigated SMEs. The study provides further insights into the research topic by jointly studying managerial characteristics and perceptions in the Spanish context where the exporting activities have not been as widely studied so far.     

SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

Using the “best‐fit” approach to investigate the effects of politico‐economic and social barriers on SMEs' internationalization in an emerging country context: Implications and future directions

The way this study has used the “best‐fit” approach has facilitated the investigation of how three hypothesized constructs of political, economic, and social barriers can deepen our knowledge of their impacts on small and medium‐sized enterprises (SMEs)' internationalization within a small developing country context. Based on a quantitative analysis of the three hypothesized barriers, we used the “best‐fit” approach to measure the extent to which the SMEs' internal variables like people, products, services, and practices might best fit some of the people and non‐people factors external to the businesses. The application of the “best‐fit” approach onto the three hypotheses—politics (H1), social (H2), economics (H3), helped us in explaining the major social and politico‐economic barriers faced by a developing economy' (Bangladeshi) SMEs' internationalization despite previous literatures' emphasis on the impacts of globalization, market drivers or their oversight. Based on the findings, we point to future research trajectory. This study used primary survey data from 212 Bangladeshi SMEs and successfully validated an HR model by using Smart PLS3 software. The results from the hypotheses were used to produce the HR model to help SMEs identify the significance of people and economic factors and propose these aspects for inclusion in the “best‐fit” approach, SME, and globalization research.     

The internationalization process in the small and medium sized firms: A case study on the Italian clothing industry

In this research we use a data-base that reveals the propensity for contractual ventures and direct investments (1051 operations) of the clothing Italian companies during the period 1987–1991, on a national (342 operations) and international level (709 operations). The latter were analyzed with reference to the internal (412) and external growth strategies (297), cooperative (362) and non-cooperative (347) deals. Our analysis focuses on the different strategies that SMEs, on one hand, and large companies, on the other hand, show in the internationalization process. Main results of the study are:

the international growth of the SMEs takes place mainly through contractual agreements (68%), more so than with non-cooperative operation (32%), whereas in large companies the non-cooperative strategies slightly prevail (54%). Consequently, the external growth strategy is very important for the SMEs (72%) and somewhat less important for the large companies (54%);

the cooperative growth is usually seen by SMEs as an expansion both of the commercial (48% of the operations involves commercial purposes) and of the production areas (48% of the cases). This could indicate that SMEs try to organize on an international level the same network model used in Italy: SMEs decentralize their production within the country through networks of companies and industrial districts, whose horizontal connections (among SMEs themselves) and vertical connections (with large companies) provide flexibility and low costs;

large companies' expectations of the Single European Market have brought a great number of international operations in Europe (24%), notwithstanding the notable importance of Japan (23%) and U.S. (17%); on the contrary, SMEs focus on “niche and rich markets” as Japan (40%); but as far as the contractual agreements are concerned, both types of firm privilege the Japanese market: almost 50% of SMEs' international agreements are directed towards Japan (33% in the large company's case);

large companies and SMEs in the middle and high segments of the market carry out more operations than companies operating in the low quality and casual segments;

generally speaking, in Italy there is an urgent need for industrial policies promoting SMEs access to cooperative instruments (“learning by cooperating”).

     

Internationalization stages of traditional SMEs: Increasing,decreasing and re-increasing commitment to foreign markets

SMEs attempt to accelerate and diversify their international expansion strategies. The purpose of this article is to identify the internationalization stages followed by traditional SMEs to seize global market opportunities. The authors analyze the internationalization paths of five French SMEs operating in traditional manufacturing industries. The empirical study is mainly based on 66 interviews. The findings indicate that the internationalization process of SMEs continues to follow several stages, but that their commitment to foreign markets may increase, decrease and re-increase. The identified stages, which can be triggered by internal and external factors, reflect characteristics of different internationalization models proposed in the literature.     

Exploration of Chinese SMEs' export development: The role of managerial determinants based on an adapted innovation‐related internationalization model

Over the past two decades, small to medium‐sized enterprises (SMEs) in China have achieved rapid international development. Due to China's unique cultural and institutional environments, our understanding of the influence of managerial determinants on internationalization is still limited. This exploratory study takes the lens of the innovation model of internationalization to revisit the dynamic development of Chinese SMEs' export operations. Based on the four in‐depth case studies, the findings suggest that exports by Chinese SMEs are influenced by managerial perceptions such as negative country‐of‐origin effect and strict overseas quality standards. In addition, they show that both external and internal drivers act as “change agents” in their internationalization involvement. These findings will assist various stakeholders—government and export promotion agencies—to develop and deliver needs‐based supports and encourage nonexporters to participate in international operations.     

Determinants of SME International Marketing Communications

ABSTRACT

This research article discusses the factors affecting international marketing communications in small- and medium-size enterprises (SMEs). International commitment and brand adaptation in overseas markets were found significantly influencing the effectiveness of international marketing communications. The results suggest that international marketers need to have resources input, such as human and financial, to drive international marketing communications. Brand adaptation also needs to be performed in order to achieve a better international marketing communications. There are two factors affecting international marketing communications suggesting international marketers of SMEs need to be concerned with both internal resource and external factors in international ventures.     

China goes global: public policies' influence on small- and medium-sized enterprises' international expansion

Despite small- and medium-sized enterprises' (SMEs) significant contribution to China's social and economic development, very little has been written about the influence that public policies (i.e. public funding priorities and regulatory measures) may have on the first stage of international expansion of Chinese SMEs. To help fill this gap, the article analyses five main factors related to public policies and services affecting Chinese SMEs' internationalization: access to public financial resources; participation of the government in ownership; access to public procurement contracts; adverse regulatory and inconsistent legal frameworks; and public assistance on information and knowledge about markets. The main conclusion is that SMEs appear to base their international expansion on private capabilities, rather than on support from the government; in addition, the perceived barriers for the international expansion of these firms may be mainly internal, rather than institutional.     

The Impact of CEO Characteristics on the Internationalization of SMEs: Evidence from the UK

This study analyses the role of chief executive officers (CEOs) in the internationalization of small‐ and medium‐sized enterprises (SMEs). Specifically, it examines the impact of CEOs' demographic characteristics on the internationalization of SMEs. Based on upper echelons theory, resource‐based view and information processing theory, it is hypothesized that CEO characteristics like age, education, tenure, and political connectedness affect SMEs' international performance. Using the panel data analysis of 283 UK SMEs for the period of 2005 to 2015, this study provides evidence that CEOs' political connections and educational level are positively related to firm internationalization, while age negatively influences firm internationalization. Tenure is found to have a curvilinear relationship with SMEs' internationalization. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Structural and competitive determinants of globally oriented small- and medium-sized enterprises: An empirical analysis

This paper examines the factors influencing the internationalization of the activities of small- and medium-sized enterprises (SMEs) as an entrepreneurial response to the opportunities and threats posed by the increasing globalization of the economic system. Findings from agricultural equipment manufacturers indicate that size, international experience, innovation, and distinctiveness have a direct influence on the degree in internationalization by SMEs. Scanning, learning, and networking have some influence on the extent of internationalization of SME activities but only indirectly through other variables. Competition intensity and uncertainty also have an indirect impact on internationalization, but standardization does not. Relative importance of each determinant is ascertained and the impact of SME internationalization activities on performance is assessed.     

Networking and internationalization of SMEs in emerging economies

Networking has been established as an important source of small- to medium-sized enterprises (SMEs) business expansion in many developed economies. Often, it provides the necessary intelligence leading to internationalization. The question this study addresses is “What are the roles and sources of networking of SMEs internationalization in emerging economies?” This study responds to this query through a dyadic study involving expert-opinion survey of SME development professionals and case studies of SMEs internationalization. The convergent views identified three interconnected sources of networking for SMEs internationalization, which are government institutions, business associates, and personal relations. The results affirmed that accomplishment of internationalization requires cohesion among the myriads of networking sources and operating agencies. A systems approach towards supporting the creation and management of networking linkages for internationalization combines systems thinking perspective with institutional view. It emphasizes integration of coordination, facilitation, and monitoring functions. Thus, suggesting institutional support and systems thinking are important constructs in the theory of international entrepreneurship. Policy makers and entrepreneurs of SMEs gain actionable points to ensure effectiveness of institutional support mechanism and to enhance their business internationalization, respectively.     

Entrepreneurial orientation,social capital,and the internationalization of SMES: Evidence from China

This article combines arguments from entrepreneurship literature and social capital theory to examine the antecedents to the internationalization of small and medium‐sized enterprises (SMEs) from China. Our quantitative study of 117 Chinese SMEs demonstrates the overall importance of entrepreneurial orientation and social capital of entrepreneurs in facilitating their internationalization efforts, and also reveals that different dimensions of entrepreneurial orientation and different types of social capital exert different levels of independent influence on Chinese SMEs' internationalization. Complementary data from multiple case studies explains the variation between our quantitative findings and the findings of previous research. By highlighting the value of the entrepreneurial attributes of Chinese SMEs and the social capital embedded in their networks in the pursuit of their internationalization, the article adds to the scant literature on the internationalization behavior of the rapidly emerging Chinese SMEs. © 2012 Wiley Periodicals, Inc.     

Developing Absorptive Capacity through e‐Business: The Case of International SMEs

This research uses the absorptive capacity concept as a theoretical lens to study the effect of e‐business upon the internationalization performance of small and medium‐sized enterprises (SMEs), addressing the following research issue: To what extent are manufacturing SMEs successful in developing their potential and realized absorptive capacity in response to the environmental uncertainty brought about by their internationalization? Results of a survey study of 588 manufacturing SMEs indicate that e‐business capabilities have a significant impact on internationalization performance to the extent that these capabilities are developed as a response to increased environmental uncertainty. Moreover, these capabilities are realized through the development of networking, advanced manufacturing, and marketing capabilities that also respond to environmental uncertainty.     

Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India

Small- and medium-sized enterprises (SMEs) make sizeable contributions to the economic success of nations. Research concerning the internationalization of SMEs is available in the context of developed economies but less is can be found dealing specifically with the entrepreneurial behavior and international expansion of SMEs in emerging markets such as India. This research extends the literature addressing the relationships surrounding the internationalization of SMEs in India as related to entrepreneurial behavior, firm resources, and commitment to internationalization. Entrepreneurial orientation, a commitment to internationalization, and the ability to leverage human capital influence the international success of Indian SMEs, based on the analysis of data collected from 150 Indian SMEs.     

The Impact of the Change from Partial to Full Foreign Ownership on the Internationalization of Foreign Subsidiaries

SUMMARY

This paper aims to study how host country firms' internationalization has been impacted by their foreign owners' achievement of full ownership if the companies were not fully foreign-owned at first. It starts with a review of the existing traditional internationalization literature: the Uppsala model, the innovation-related internationalization models and the Finnish model. Then it reviews other research streams: born global, foreign direct investment (FDI) and network literature and the literature on subsidiary roles. A conceptual framework is developed. Then, after a methodology section, four Estonian casestwo from banking and two from the textiles industryare introduced. After the discussion of the results, some managerial and research implications are drawn.     

Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea

Previous studies on the internationalization of small and medium-sized enterprises (SMEs) have typically compared the performance of internationalized SMEs (I-SMEs) with that of non-internationalized SMEs. However, not all I-SMEs can successfully lead the international market either unless they should consistently strive to attain and maintain competitive advantages. Thus, this study aims at identifying success factors which influence efforts of I-SMEs to lead international markets as internationally leading SMEs (IL-SMEs). To examine the success factors of the IL-SMEs, in this paper, IL-SMEs are specifically defined as I-SMEs which occupy dominant positions in the international market, i.e., ranking among the top three worldwide. The results based on a sample of 88 South Korean SMEs including 18 IL-SMEs and 70 I-SMEs indicate that 18 factors (out of 47 factors) show significant differences between IL-SEMs and I-SMEs in terms of customer relations/service, technological innovation, and corporate strategies. Also, by factor analysis and logistic regression analysis, three factors influencing the success of IL-SMEs are identified in the perspectives of technological innovation (R&D) and international marketing (customer satisfaction and demand quality/scope). Surprisingly, internationalization strategies and external markets have no relationship with performance of IL-SMEs. These results provide important implications to policy-makers interested in the sustainably international competitiveness of SMEs.     

The role of information technology in corporate strategy of small and medium enterprises

The crisis of the new economy might have cast doubt on the usefulness of the Internet for business activities. However, it is unquestionable that the possibilities offered by Internet-based technologies in terms of information processing, transfer and collection enable the firm to improve market knowledge and the relationship with clients and suppliers. This work explores, theoretically and empirically, the possibilities offered by the Internet to facilitate the internationalization process of Small and Medium Enterprises (SMEs) as well as to improve the relationship with other firms within the same value chain. Using a wide representative sample of Spanish SMEs, the empirical analysis confirms the benefits of the Internet in both cases.     

Internal and external determinants of export performance: Insights from Algeria

The internationalization of small and medium‐sized enterprises (SMEs) has been the focus of numerous studies. However, while the attention has thus far been on SMEs operating in developed countries, firms evolving in a developing context, including Africa, have been largely neglected. To address this, and drawing on a dual resources‐based and network‐based view, this study simultaneously investigates the importance of internal and external resources for firms’ export performance and regularity in the context of North African SMEs. Using a sample of Algerian exporters, the study reveals the superiority of discrete resources for boosting export performance and export regularity. These findings provide directions to Algerian SME managers and policymakers as to important factors driving the internationalization process in the developing Algerian context.     

The Role of Location as a Selection Criterion in FDI: The Case of SMEs in Greece

The study examines the internationalization of Greek SMEs in Western Europe and the Balkan area, focusing on the role of location as a selection criterion in their FDI decisions. Data aimed at capturing SMEs’ perceptions with regard to incentives affecting their FDI based on location criteria. We find that location plays a significant role with regard to the benefits that firms gain, highlighting OLI paradigm's theoretical relevance in the examination of FDI, while presenting internationalization trends in the global environment. Findings further contribute to the adaption of effective practices to enhance firms’ competitiveness through more rational and targeted investment decisions.     

Perceived resource deficiency and internationalization of small- and medium-sized firms

It is documented in the literature that resource deficiency constitutes a barrier to firms’ internationalization. However, small- and medium-sized firms' (SMEs) perceptual barriers to internationalization have received little attention. By highlighting the importance of managerial perceptions in strategic decisions and integrating the resource-based view and the technology acceptance model, this study examines the role of perceived resource deficiency in SMEs’ internationalization. The major finding of this study suggests that perceived resource deficiency in knowledge-based resources constitutes a major perceptual barrier to SMEs’ internationalization. Particularly, perceived resource deficiency in knowledge-based resources has more negative impact on internationalization than does that in other firm-specific resources.