Quantitative Analysis of Managerial Capabilities and Internationalization of Manufacturing SMEs – Empirical Evidence from Developing Countries

Abstract

In this study, managerial capabilities: management capacity or size; management expertise; and management process were quantitatively analyzed through longitudinal methodology to ascertain their importance as one of the key driving forces or factors of firm's international operations. The objective is to examine whether there is a significant relationship between these factors and the firm's degree of internationalization. The study is based on a sample of 500 low, medium and highly-internationalized non-SMEs and SMEs from five developing countries. The results indicate that there is a significant difference in the managerial capabilities of SMEs and non-SMEs at all levels of internationalization. For example, management capacity (size) of SMEs was significantly less than their non-SMEs counterparts at the moderate and high levels of internationalization. SMEs were significantly less likely to employ a qualified managers (expertise) or uses professional training at the low, moderate and high levels of internationalization when compared to non-SMEs. SMEs were also found to be significantly less likely to develop management process, (international expansion, export and strategic plans, TQM, JIT, QA) when compared to non-SMEs. Overall, the study results suggest that compared to non-SMEs, SMEs grow internationally with less managerial capability.

Exploring the Co-Creation of Small and Medium Enterprises, and Service Providers Enabled by Digital Interactive Platforms for Internationalization: A Case Study in Malaysia

“…Prior researchers have identified network relationships [7,22], institutional support [16,17,19,77], barriers to internationalization [51,80,93], the internationalization process [33,40], innovation [35,114,120], firm capabilities [71,91], contributing factors of internationalization [32,36,44], and the use of digitalization [87,90,97,104,110,111]. The aim of this study is to shed light on the use of DIP to enable co-creation between SMEs and service providers in order to accelerate internationalization.…”

“…RM5 billion has been allocated for entrepreneurship and development programs [31]. However, studies on the F&B industry in the context of the early internationalization process are immature [32][33][34]. According to Idris and Saridakis and Mamun et al, it is important to understand the early internationalization of SMEs in the manufacturing sector [20,35].…”

Internationalizing through networks from emerging to developed markets with a case study from Ghana to the U.S.A.

“…Previous studies have emphasized the crucial role played by SMEs in stimulating socioeconomic advancement and providing employment opportunities through internationalization (Osei Bonsu, 2014). Business relationships and networks are crucial in allowing such firms to overcome some of the associated challenges such as resource constraints during internationalization (Coviello & Munro, 1997;.…”

Déterminants de la performance à l’export des pme algériennes : dirigeant, entreprise et conditions dans le pays d’origine

“…L'examen des résultats montre que les PME exportatrices algériennes partagent les mêmes facteurs explicatifs de leur performance à l'export que ceux des autres pays en développement et des pays similaires à l'Algérie en matière de structure de l'économie (Osei-Bonsu, 2014 ;Haddoud et al, 2019). En effet, le profil du dirigeant de la PME algérienne, à travers son engagement international, son savoir-faire à l'export et son attitude à l'égard du risque, a un impact direct et significatif sur la performance objective et subjective.…”