This research attempts to explore the importance of cluster-based systems in preparation for small and medium enterprises (SMEs) to go global, and it is an ongoing research. The findings of this research are aimed at providing insights to policy makers, academicians, and practitioners with the objective of creating initiatives, strategies, and policies, which reflect the primary aim of supporting SMEs in managing global challenges. SMEs that are cluster-based have the potential to facilitate the successful inclusion of SMEs in the growth of productivity and networks of global distribution. Most Asian developing countries are in the dark when it comes to this matter. The main purpose of this study is to investigate the relations between the capabilities of the networks and clusters in developing SMEs' preparedness in facing business players in the global arena. This study's scope includes specific Asian developing countries. Even though the issue of clusters in SMEs has been well researched in developed countries, such empirical studies are still lacking in the Asian region despite its prevalent collectivism practice. In the concluding analysis, the study intends to develop a model emphasizing the cluster-based industrial SMEs toward globalization.

The increasingly tight competition urged SMEs to expand the market beyond national borders, not only for their growth and expansion but also to participate in the nations’ economic development. Consequently, internationalization has become a vital component for any SME which necessitate enhancing our understanding on determinants of internationalization, particularly in emerging economies. To this end, a literature review is conducted to develop a new conceptual model. Certain variables are identified for influencing SME internationalization including export capability and networking capability. Additionally, it is proposed that the relationship between networking capability, export capability and SME internationalization might be mediated by competitive advantage. This study contributes to the scant literature on the determinants of the firm competitive advantage and its potential mediating role in the relationship between organizational capabilities and SME internationalization. Practically, the present study benefits policymakers and the government in developing countries to outline the suitable policies and frameworks to produce more SMEs that are capable to exploit the international markets.