Revisiting models of internationalization: Pre‐export phase and lateral rigidity of emerging market Small and Medium Enterprises

Mishra, Mahima; Paul, Justin; Czinkota, Michael R.

doi:10.1002/tie.22252

Cited by 16 publications

(42 citation statements)

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“…Internationalisation and exporting concerns enter foreign markets to sell their products or services (Chabowski et al , 2018; Calabrò et al , 2016; Purkayastha et al , 2021; Ipsmiller et al , 2022; Mishra et al , 2022). It enhances firm capabilities, contributes to the economic development of the nation, generating employment, productivity and optimum utilisation of resources (Rocha et al , 2008; Pinho and Martins, 2010; Hilmersson and Johanson, 2016; Mishra, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Overcoming barriers in automotive SMEs to attain international competitiveness: an ISM approach modelling

Mishra

Chaubey

Khatwani

et al. 2023

JBIM

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Purpose This paper aims to identify and model barriers to internationalising automotive small and medium-sized enterprises (SMEs) from emerging market perspectives using the interpretive structural modelling (ISM) approach. Design/methodology/approach In this paper, 13 critical barriers are identified through an exhaustive literature review and the Delphi method. The ISM tool is then used to establish interrelationships among the identified barriers to expose and discuss the key barriers having high-driving power. Findings It was found that barriers such as trade agreements and export documentation, exchange rates and material inadequacies were relatively less challenging than the other barriers. At the next level, there are barriers such as supply chain, high international quality standards, legal barriers, skilled labour marketing capacity and information and logistics and infrastructure. Finally, barriers such as government policies, entrepreneurial orientation and technology and finance availability posed the most significant challenge for the internationalisation of Indian SMEs. These barriers warrants immediate and considerable attention. Research limitations/implications This study developed a model based on experts’ opinions, which may be biased and influence the final model as proposed in this study. This research will help the owners/managers of the SMEs and policymakers identify and understand the significance and relevance of automotive sector barriers while strategizing. Originality/value To the best of the authors’ knowledge, this is the first time an attempt has been made to apply ISM methodology to explore the interdependencies among the critical barriers of internationalisation for SMEs of Indian automotive industries. This study will guide the owner–managers management practices to overcome ineffective practices and move towards successful internationalisation.

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Section: Literature Reviewmentioning

confidence: 99%

Overcoming barriers in automotive SMEs to attain international competitiveness: an ISM approach modelling

Mishra

Chaubey

Khatwani

et al. 2023

JBIM

Self Cite

View full text Add to dashboard Cite

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“…Small and medium enterprises (SMEs) are considered the compelling force behind the development of various economies (Cravo et al, 2012; Mishra, 2020; Mishra et al, 2022). Governments have given elevated attention to the internationalization of SMEs for the various economic and financial benefits it brings to national industries and the development of the private sector (Adomako et al, 2022; Cravo et al, 2012; Törnroos, 2002), as well as the creation of employment and entrepreneurial skills (Daszkiewicz & Wach, 2012; Lu & Beamish, 2001; Todd & Javalgi, 2007).…”

Section: Introductionmentioning

confidence: 99%

“…However, SMEs are constrained by their owned resources, as well as those acquired from other institutions in the course of internationalization, which include lack of management skills and knowledge, as well as financing provisions to internationalize (Bowen, 2019; Dalla Costa & El Alam, 2017; Langseth et al, 2016). Firms internationalize in incremental steps based on foreign market knowledge and resource commitment (Johanson & Vahlne, 1977; Mishra et al, 2022), as well as psychic or institutional distance (Johanson & Wiedersheim‐Paul, 1975). Network theorists suggest that some firms may not grow in international markets incrementally, but follow a faster internationalization track through acquiring resources from network partners (Johanson & Mattsson, 2015), where two or more connected business relationships act collectively (Emerson, 1981).…”

Section: Introductionmentioning

confidence: 99%

“…Those few studies that explored the different types of networks on internationalization (cf. Andersson & Sundermeier, 2019; Mishra et al, 2022) were mostly exploratory and did not explain how networks build organization capabilities for internationalization. Further studies are needed to explore how organization capabilities mediate the relationship between networks and SMEs internationalization (Zahoor et al, 2020), where organization capabilities deem crucial to capitalize on organization networks in the course of internationalization (Ferreras‐Méndez et al, 2019; Khalid & Bhatti, 2015; Steinhäuser et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…In spite of the fact that SMEs in emerging economies face higher resource constraints compared to those in developed economies (Hansen et al, 2018), studying the role of networks in supporting the internationalization of SMEs in emerging economies has received lesser attention (Chandra et al, 2020; Malca et al, 2021; Menzies et al, 2020; Mishra et al, 2022; Paul & Dikova, 2016). It is noticeable though that there is increased attention toward studying African firms' internationalization (cf.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The role of networks and capabilities in the internationalization of SMEs in North Africa: The case of Egyptian SMEs

Aldibiki

Ebrashi

2023

Thunderbird Intl Bus Rev

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Executive SummaryThis research studies the role of networks in the internationalization of small and medium enterprises (SMEs) in an emerging country; mediated by internationalization capabilities. Self‐administered surveys targeting 300 SMEs in Egypt were employed, and Structural Equation Modeling (SEM) was used to test the proposed hypotheses. The results indicated that nonbusiness institutional networks have a direct positive impact on Egyptian SMEs' international performance, while the direct relationship between interfirm networks and social networks with international growth showed insignificant results. Moreover, the mediating role of the internationalization capabilities showed significant results between the three types of networks and SMEs' international performance. This study is an original attempt to differentiate among the types of networks, and how each affect SMEs' international growth. Additionally, empirical evidence is provided for the role of networks in building SMEs' internationalization capabilities in an emerging country context, where research has received less attention.AbstractThis research aims to study the role of networks in the internationalization of small and medium enterprises (SMEs) in an emerging country. The research also investigates the mediating effect of internationalization capabilities; namely disruption and value‐adding capabilities in the internationalization process. This study is following a conclusive descriptive research design, utilizing a quantitative methodology using self‐administered surveys. Data were collected from 300 SMEs in Egypt from various industries. The results indicated that nonbusiness institutional networks have a direct positive impact on Egyptian SMEs' international performance. However, the direct impact of interfirm networks and social networks on SMEs' international performance showed insignificant results. Moreover, the mediating role of the internationalization capabilities, namely disruption capabilities and value‐adding capabilities, showed significant results; mediating the relationship between the three types of networks and SMEs' international performance. This study contributes to the networks theory as well as the dynamic capabilities theory, where we postulate that various types of networks support the development of specific capabilities crucial for firms' internationalization. The study is important for SME managers as it identifies the specific importance of business, social, and nonbusiness institutional networks to enhance SMEs' international performance in emerging countries. This study employed AMOS‐SPSS version 21 for data analysis.

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Unpacking Stimuli and Barriers to Internationalization Across Export Stages: The Case of Spanish Wine Firms in China

Jiménez‐Asenjo,

Filipescu,

Curran

2024

Thunderbird Intl Bus Rev

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Firm internationalization has been analyzed from different angles based on various theories. However, qualitative research on the stability of the factors that motivate and hinder internationalization across the export stages in emerging markets is limited. This study builds on the “stages” theories of internationalization, providing a detailed analysis of the perceived stability of stimuli and barriers during the exploration, entry, and expansion stages. We focus on a sample of Spanish wine firms exporting to China—a key wine market, with annual growth rates of over 25% between 2000 and 2020. The results suggest that the perception of most barriers is stage‐dependent, varying over time as commitment levels evolve. The main stimuli, on the other hand, remain constant across the different export stages. Moreover, we find that firm size, international experience, and access to local and international networks are key factors that influence the evolution of firms' internationalization in China, while lateral rigidity continues to constrain the expansion of smaller companies. These findings contribute to a deeper understanding of the opportunities and challenges of doing business in an emerging market, particularly in the institutional context in China, as well as their evolution over different stages of internationalization. Furthermore, they offer insights into the dynamics of the Chinese wine market and the implications for European exporters.

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Revisiting models of internationalization: Pre‐export phase and lateral rigidity of emerging market Small and Medium Enterprises

Cited by 16 publications

References 86 publications

Overcoming barriers in automotive SMEs to attain international competitiveness: an ISM approach modelling

Overcoming barriers in automotive SMEs to attain international competitiveness: an ISM approach modelling

The role of networks and capabilities in the internationalization of SMEs in North Africa: The case of Egyptian SMEs

Unpacking Stimuli and Barriers to Internationalization Across Export Stages: The Case of Spanish Wine Firms in China

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