Internationalisation of developing economy small and medium-sized enterprises: social capital and learning in Palestinian pharmaceutical firms

Abstract

PurposeThe paper examines the role of learning through social capital on the internationalisation process of small and medium-sized enterprises (SMEs) based within extreme contexts. The study focuses on the Palestinian pharmaceutical industry.Design/methodology/approachThe inductive, exploratory research used in this study adopts a case study approach. Data derived from semi-structured in-depth interviews held with senior management and companies' founders were analysed using content and thematic analysis techniques.FindingsThe findings suggest that accumulated learning by SMEs seeking international expansion is enhanced with stronger social capital ties and networks through structural, relational and cognitive mechanisms. Serendipity and liability effects enabled modes of foreign entry with higher degrees of commitment than efficacy-related factors.Practical implicationsThe Palestinian pharmaceutical industry presents a benchmark for other industries in comparable developing economy contexts. This study elucidates the important interrelationship between social capital and learning for SMEs seeking to expand internationally; the findings have implications for regional policymaking in developing economy regions.Originality/valueThe case study investigation focuses on the pharmaceutical industry and SMEs operating within the extreme context of Palestine, thereby contributing insights in an area of management enquiry that is under-represented in the extant literature.

Twenty-five years of the Journal of Small Business and Enterprise Development: a bibliometric review

“…From an internationalization perspective, the journal recognizes the continued and ever-expanding global nature of business and continues to actively recruit, consider and publish scholarship in this regard (e.g. Ahimbisibwe et al , 2020; Khoury et al , 2020). Last, with regard to entrepreneurship in under-represented and minority populations, the journal remains committed to proactively supporting the publication of scholarship in this critical area of need (e.g.…”

Serendipity in management studies: a literature review and future research directions

“…, 2011). In both the early and late internationalisation phases, serendipity can play a critical role and sometimes acts as an enabler of internationalisation (Khoury et al. , 2021) or of the venture creation process itself (Kimjeon and Davidsson, 2021).…”

“…This usually occurs when strategic commitment toward internationalisation is low, although they still expand internationally quite early (Wood et al, 2011). In both the early and late internationalisation phases, serendipity can play a critical role and sometimes acts as an enabler of internationalisation (Khoury et al, 2021) or of the venture creation process itself (Kimjeon and Davidsson, 2021). For example, actors might serendipitously trigger firms toward gaining foreign market entry by informing them about opportunities or by creating new links between these firms and potential consumers or new partnerships (Agndal et al, 2008;Chetty and Agndal, 2007;Kontinen and Ojala, 2011).…”

“…From the analysis, it emerged that serendipity can be an enabler of internationalisation processes (e.g. Khoury et al, 2021), unexpected early growth after foreign market entry (e.g. Wood et al, 2011), network creation (e.g.…”

Resilience through Entrepreneurial Storytelling in Extreme Contexts: A Case Study of a Pharmaceutical Company in the Palestinian Territory

“…Entrepreneurs develop new strategies to sustain their competitive advantage in turbulent environments by attracting investors and utilizing external resources. For example in volatile contexts, strategic alliances can encourage innovation, strengthen companies' resources, reduce costs and mitigate risks (Khoury et al, 2021). This case considers how entrepreneurial storytelling can attract investors to sustain performance of an enterprise that operates in the Palestinian Territory as an example of an extreme environment.…”