The internationalization of small to medium-sized enterprises: do all levels in international networking matter?

Ahimbisibwe, Godwin Mwesigye; Ntayi, Joseph Mpeera; Ngoma, Muhammed; Bakunda, Geoffrey; Kabagambe, Levi

doi:10.1108/jsbed-09-2019-0313

Cited by 20 publications

(26 citation statements)

References 64 publications

(100 reference statements)

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“…Oviatt and McDougall (1994) pointed out that these types of firms are called International New Venture (INVs), also known as Born Global firms (BG), which progress is skipping the stage theory of internationalization, the Uppsala model, from the initial stage. The main focal point of the INVs model is age, and it proposes the INVs to gain significant comparative advantages from the beginning of establishment by utilizing their resources and the sale of products in several different markets (Senik et al, 2010;Lin et al, 2016;Ahimbisibwe et al, 2020). BG/INVs skip stages of incremental internationalization when doing business and are involved in the international activities within the first year of establishment or a few years from inception (Senik et al, 2010;Bowen, 2019).…”

Section: Born Global or The International New Venture (Bg/invs)mentioning

confidence: 99%

“…Afsharghasemi et al (2013) concurred that firms' relationships could be either form of collaborative associations with competitors or a voluntary agreement between firms. Previous research largely agreed that with the help of networking, all actors engaged in the market could benefit from their internationalization process; thereby, it is not an individual or sole effort that needs to be taken (Afsharghasemi et al, 2013;Ahimbisibwe et al, 2020). Musteen et al (2010) argue that SMEs have several different characteristics because of their limited resources and market power, compared to the multinational enterprises (MNEs) when they track the new opportunities in the international market.…”

Section: The Network Theorymentioning

confidence: 99%

“…In this theory, Johanson and Mattsson (1988) stated that the full internationalization process comes about because of three interdependent stages of establishing network posture within the foreign market: the first stage, also known as the network extension stage. The second stage is network penetration, which means those relationships in the networks are to be developed and coordinated in different countries, named the network integration stage (Ahimbisibwe et al, 2020).…”

Section: The Network Theorymentioning

confidence: 99%

“…Therefore, internationalization appears to be a solution for the SMEs in developing countries, particularly countries with small domestic markets and exist in the region easy to enter for other MNEs, growth, and survival (Jeong, 2016;Costa et al, 2017;Ahimbisibwe et al, 2020). Lis et al (2012) pointed out that internationalization is the outward process of entering into a new geographical location and expanding their operations in the international field.…”

Section: Introductionmentioning

confidence: 99%

“…It also helps reveal their capabilities and develop an entrepreneurial orientation for the owner-managers to enhance their competitive advantage in a rapidly changing environment and be competent enough for aggressive competition (He et al, 2020). Ahimbisibwe et al (2020) specified that compared SMEs in developing countries to MNEs possess a limited resource, market knowledge, and skills. Thus, SMEs in developing countries will promote their international participation by enabling their network with other foreign market actors.…”

Section: Introductionmentioning

confidence: 99%

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The Role of Network Ties on SMEs Internationalization Process in the Developing Countries Emerging Markets: A Comparison between Mongolia, China, and Malaysia

Altnaa¹,

Васа²,

György³

2021

IJEBA

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Purpose:The paper aims to investigate the role of all types of networking on SMEs' internationalization process in general. Then, to compare SMEs' networking approaches in the selected three countries and their main differences in terms of network creation and operation. Finally, to report effective SMEs' internationalization practices in Malaysia and China, which should be adopted in Mongolia. Approach/Methodology/Design: The study is descriptive and used secondary data as the primary source. We concluded institutional networking substituted by the social and business networking ties in developing countries such as China, Malaysia, and Mongolia. Findings: These SMEs rely heavily on the information collected by the personal channels to bring about both pros and cons for their internationalization process. Secondly, the policymakers should establish the private specialized firms or export agencies established in Malaysia and China a long time ago to address information and knowledge barriers faced by SMEs in Mongolia. Practical Implications: The first implication is SME managers or owners in developing countries prefer to have strong social relationships with actors, which help them to receive some benefits and accelerate their internationalization process, but it results in neglecting institutional networking some crucial roles.

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Section: Born Global or The International New Venture (Bg/invs)mentioning

confidence: 99%