Barriers to internationalisation in SMEs: evidence from Jordan

Abstract

Purpose -This study aims to identify some of the major barriers that may hinder potential small to medium-sized enterprise (SME) exporters and non-exporters from exporting their operations in the international market. Design/methodology/approach -Based on the aim of this study, a questionnaire based survey method was conducted among 250 Jordanian manufacturing SMEs using random sampling with usable response rate of 54 per cent. Data were analysed using relevant statistical methods ranging from factor analysis to regression analysis. Findings -The results show that economic/political-legal and governmental barriers, financial and information barriers have a significant negative relationship with the export performance of SMEs in Jordan. Also, the results show that exporters and non-exporters significantly agree in their views of the various barriers.Research limitations/implications -The study was carried out on SMEs operating in Jordan. Hence, caution should be taken when generalisation across cultures is considered. However, the findings of the study provide public and company policy makers with valuable guidelines for the formulation of suitable export marketing strategies and national export assistance programs. Originality/value -This is ascribed to the relatively small local market size and to the country's gradual shift from heavy reliance on import substitution strategies in the last two decades to contemporary export orientation. Also, there is now a need for an urgent action plan to correct the deficit in the trade balance in the Jordanian economy. This action plan needs to include what causes Jordanian SMEs to export or prevents them from doing so. Once the relative importance of these barriers is detected, their validity in predicting the probability of a SME firm being an exporter can be tested.

Barriers to enter in foreign markets: evidence from SMEs in emerging market

“…OECD (2006) has reported that duration for developing countries to complete the process of either exporting or importing is three times higher than developed countries. Despite the critical role of express service to facilitate internationalisation of SMEs, earlier studies failed to identify this as a key barrier for SME internationalisation process (Al-Hyari, Al-Weshah and Alnsour, 2012;Okpara and Kabongo, 2010). In the light of above, it has been hypothesized that: H6: Lack of express service within the home economy would work as a barrier for SMEs to enter into foreign market.…”

Empirical Relationships among Technological Characteristics, Global Orientation, and Internationalisation of South Korean New Ventures

“…Thus, nothing is more important than CEOs' choices to enter into new international markets. That is to say, this study suggests that the CEO's global orientation plays an important role in promoting rapid internationalisation [62]. Finally, it implies that in export-oriented countries such as South Korea, successful internationalisation is needed to have national competitiveness, suggesting that investigating the characteristics of INVs, that have played an essential role in improving the competitiveness, is significant and meaningful for both academia and industry that would like to carry out the successful internationalisation.…”

“…Therefore, this study has a significant implication that proposes a research direction that various technological characteristics can affect internationalisation, and these characteristics should be studied more comprehensively. In the case of SMEs like INVs, it is very difficult to internationalise due to limited resources [62]. Thus, nothing is more important than CEOs' choices to enter into new international markets.…”

Export Market Orientation for Manufacturing Small-Medium Enterprises in East Java Indonesia

“…At least there are two factors that lead the low of SMEs export performance so that lower the value of its contribution to the total national exports [2]. Both of these obstacles are internal and external constraints.…”

“…The internal constraints related to access with information about foreign markets, functional ability/managerial facing foreign markets, and marketing. While external factors associated with export procedures, the role of government, the difficulties facing foreign competitors and customers, and the differences in the economic, political, and social culture [2], [3].…”