Internationalization and destination selection of emerging market SMEs: Issues and challenges in a conceptual framework

Abstract

In this article, we target emerging market small and medium-sized enterprise (SME) internationalization by tackling two key questions: (1) What are the issues and challenges facing the emerging market SMEs in the process of internationalization in general and choice of destination in particular? (2) What are the strategies and processes being adopted by SMEs to overcome the challenges and limitations with specific reference to international destinations in developed economies as opposed to emerging markets? As we delve into these twin issues, we develop a conceptual framework, based on our mini case studies of Chinese and Indian SMEs to make complementary contribution to the research on the internationalization of emerging market SMEs. Finally, we pose a number of research questions for future research as the outcome of this article.

A systematic review on the internationalization of Chinese SMEs: thematic expansion, new impulses and potential avenues for future research

“…A few articles address CEO’s beliefs and SMEs’ environmental orientation (Chan and Ma, 2016; Joo and Suh, 2017; Wang and Zhao, 2020), the role of marketing and IT in firm planning and globalization (Siu et al , 2004; Jean and Kim, 2019; Zhang et al , 2008; Zhang et al , 2014) and the strategic motivations behind Chinese SME’s international expansion (Wei et al , 2013; Yamakawa et al , 2013; Zhu et al , 2020). Table 6 lists the key empirical findings of the analyzed articles on internationalization strategy.…”

“…influences international performance; marketing culture and international orientation as antecedents to intern. marketing strategy Zhang et al (2015) Political strategy To strengthen the positive effects of IE characteristics on firm internationalization, small non-SOEs would benefit from further political ties to facilitate their access to regulatory resources Zhu et al (2020) Drivers, push and pull factors Developed a conceptual framework consisting of drivers including push (policies, changing environment) and pull factors (e.g. lower costs in other markets, higher opportunities, advanced technology), the process including facilitators such as entrepreneurial dynamism and destination selection Table 6.…”

Taking social responsibilities overseas? The learning paths and performance consequences of Chinese multinationals

“…This is not only because of the heterogeneity among the EMNEs but also owing to the various home-country policies that affect the firms' international behavior (Luo et al, 2017;Ramamurti, 2012). For example, Chinese firms are motivated by the BRI policies to engage in global network building and improve their global image (Zhu et al, 2020). Subjected to the influence of contextual effects, managers and expatriates from various countries may have different preferences in performing international assignments.…”

“…Most recently, the Chinese e-commerce giant Alibaba and its subsidiaries donated quantities of medical supplies, such as personal protective equipment, to the United States and other Asian countries immediately after the outbreak of the COVID-19 crisis (Forbes, 2020). Since China's ''going global'' policy and the aggressive propagation of the Belt and Road Initiative (BRI) (Zhu et al, 2020), Chinese multinationals have been encouraged to engage in global competition and adopt CSR practices for improving their global image and reputation (Miska et al, 2016;Tashman et al, 2019;Zhang et al, 2020). Existing studies explore CSR adoption by Chinese multinationals in host countries, including strategic or institutional factors affecting CSR initiatives (Miska et al, 2016;Zhang et al, 2020), the various forms of CSR practices across different contexts (Tashman et al, 2019), and undertaking CSR activities as an alternative means to gain legitimacy (Zhang et al, 2020).…”

A Triad of Uppsala Internationalization of Emerging Markets Firms and Challenges: A Systematic Review

“…From a survey of 1612 Korean SMEs, Lee et al (2012) reveal that foreign direct exporting is associated with better survival prospects, suggesting that failure risk does not increase with cross-border sales. Overall, firms internationalize in order to reach a specific strategic goal; however, there are push and pull factors as well as challenges (see, e.g., Rahman et al 2017;Hilmersson 2012;Zhu et al 2020).…”