Thursday, 20 September 2012

SME and its Challenges



The point of this article is to discuss the dynamics that inspire and bring about the internationalization of small and medium sized enterprises. And to study the important angels and ideas that are linked to the internationalization process of some of the firms in Turkey.

Small businesses internationalize their market strategy according to the stages model of internationalization, firms move consecutively through different stages as they develop their internationalization. Starting with no interest in exporting, progressing through exporting, and finally foreign direct investment modes such as joint ventures and wholly owned subsidiaries in both production and sales.

This model is represented by stages where a higher level stage represents more experience/involvement than the lower level stages. And each subsequent stage involves more commitment to the international market than the previous stage.



The relationship of the internationalization of small firm businesses is theorized based on six factors:
  • The size of the firms
  • The age of the firms
  • The technology level of the firms
  • The growth of the domestic markets
  • The level of competition
  • The international planning activity
This study showed that the ability to be an exporter was related to the business age, size, growth rate of the domestic markets and planning for exports, pursued by SMEs. The conclusion is that, for small firms, it seemed that internal and external factors were related to the level of international sales. The variables that were found to be related to international large firms were also related to our study-sample small firms.

Referred to 

SME exporting challenges in transitional and developed economies

The Authors

Kent E. Neupert, International Business Programs, College of Business and Economics, Boise State University, Boise, Idaho, USA 

C. Christopher Baughn, Department of Management, College of Business and Economics, Boise State University, Boise, Idaho, USA 

Thi Thanh Lam Dao, Business School, National Economics University, Hanoi, Vietnam




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