SME Internationalization Intelligence Information and Knowledge on International Opportunities

https://doi.org/10.22146/gamaijb.5489

Zizah Che Senik(1*), Ridzuan Md. Sham(2)

(1) School of Business Management, Faculty of Economics and Management, Universiti Kebangsaan Malaysia
(2) Universiti Kuala Lumpur, Malaysia, Malaysian France Institute
(*) Corresponding Author

Abstract


Small and medium enterprises (SMEs) internationalization intelligence, referring to the process of gathering information and knowledge on international opportunities, is crucial to initiate SMEs’ internationalization. The literature has stressed organizational resources, networks and information sharing as means to acquire internationalization intelligence, suggesting that the resource-based, network and social capital perspectives can be adopted to explore this issue. However, previous literature still lacks evidence on how SMEs acquire relevant intelligence, and who or what are involved with the process. To address this lack of evidence, we interviewed 54 SME owners/key personnel in the manufacturing sector to: identify sources of internationalization intelligence; examine how those sources assist SMEs to internationalize; and develop propositions on internationalization intelligence. Analyzing the data using NVivo, four themes emerged including institutions, business associates, personal efforts, and other means. The analysis suggests internationalization intelligence occurs mainly through the networks of the SME owners/key personnel, built on their firm’s resources through their internal and external information sharing activities, indicating the need of the SMEs to position themselves in their environments. These findings are developed into propositions. The study indicates multiple perspectives in conceptualizing the process of internationalization intelligence. This study advances a conceptualization of internationalization intelligence, and offers avenues for future research.      

Full Text:

PDF


References

Adler, P. S., and S. W. Kwon. 2002. Social capital: Prospects for a new concept. Academy of Management Review 27 (1): 17-40.

Agndal, H., and S. Chetty. 2007. The impact of relationships on changes in internationalization strategies of SMEs. European Journal of Marketing 41 (11/12): 449 -1474.

Albaum, G., J. Strandskov, and E. Duerr. 1998. International Marketing and Export Management (3rd ed.). Essex: Addison Wesley Longman Ltd.

Aldrich, H. and M. C. Fiol. 1994. Fools rush in? The institutional context of industry creation. Academy of Management Review 19 (4): 645-70.

Ambler, T., and C. Styles. 2000. The future of relational research in international marketing: constructs and conduits. International Marketing Review 17 (6): 492-508.

Anand, J., and A. Delios. 2001. Location specificity and the transferability of downstream assets to foreign subsidiaries. In P. W. Beamish, A. Delios and S. Makino (Eds.), Japanese Subsidiaries in the New Global Economy. Cheltenham, UK, and Northampton, MA, USA: Edward Elgar.

Andersen, O. 1993. On the internationalization process of firms: a critical analysis. Journal of International Business Studies (2nd Quarter): 209-231.

Autio, E., H. J. Sapienza, and J. G. Almeida. 2000. Effects of age at entry, knowledge intensity and imitability on international growth. Academy of Management Journal 43 (5): 909-942.

Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management 17: 99-120.

Baron, R. A. and T. B. Ward. 2004. Expanding entrepreneurial cognition’s toolbox: Potential contributions from the field of cognitive science. Entrepreneurship Theory and Practice 26 (6): 553–573.

Beamish, P. W. 1990. The internationalization process for smaller Ontario firms: A research agenda. In A. M. Rugman (eds.), Research in Global Strategic Management - International Business Research For the Twenty-First Century; Canada’s New Research Agenda. Greenwich: JAI Press.

Belich, T. J., and A. J. Dubinsky. 1995. Factors related to information acquisition in exporting organizations. Journal of Business Research 33 (1): 1-11.

Bilkey, W. J., and G. Tesar. 1977. The export behavior of smaller-sized Wisconsin manufacturing firms. Journal International Business Studies 8: 93-98.

Björkman, I., and S. Kock. 1995. Social relationships and business networks: The case of Western companies in China. International Business Review 4 (4): 519-535.

Buchanan, J., and M. L. Jones. 2010. The efficacy of utilising Nvivo for interview data from the electronic gaming industry in two jurisdictions. Review of Management Innovation and Creativity 3 (5): 1-15.

Cavusgil, S. T. 1980. On the internationalization of firms. Marketing and Research Today 8 (6): 273-281.

Che Senik, Z., R. Mat Isa, B. Scott-Ladd, and L. Entrekin. 2010. Influential Factors for SME Internationalization: Evidence from Malaysia. International Journal of Economics and Management 4 (2): 285 – 304.

Chetty, S. K. 1999. Dimensions of internationalisation of manufacturing firms in the apparel industry. European Journal of Marketing 33 (1/2): 121-142.

Chetty, S., and H. Agndal. 2007. Social capital and its influence on changes in internationalization mode among small and medium-sized enterprises. Journal of International Marketing 15: 1–29.

Chetty, S. K., and B. Blankenburg Holm. 2000. Internationalisation of small to medium sized manufacturing firms: a network approach. International Business Review 9 (1): 77-93.

Coviello, N. E., and H. J. Munro. 1995. Growing the entrepreneurial firm: networking for international market development. European Journal of Marketing 29 (7): 49-61.

Craig, C. S., and S. P. Douglas. 1996. Developing strategies for global markets: an evolutionary perspective. Columbia Journal of World Business 31: 70–81.

Curran, J., and R. A. Blackburn. 1994. Small Firms and Local Economic Networks: The Death of the Local Economy? London, Paul Chapman.

Czinkota, M., and W. Johnston. 1981. Segmenting U.S firms for export development. Journal of Business Research 9 (4): 353-366.

Dana, L. P. 2001. Introduction - networks, internationalization and policy. Small Business Economics 16: 57-62.

Dangelico, R. M., A. C. Garavelli, and A. Messeni Petruzzelli. 2008. Knowledge creation and transfer in local and global technology networks: A system dynamics perspective. International Journal of Globalisation and Small Business 2 (3): 300–324.

Delbecq, A., and A. Van de Ven. 1971. A group process model for problem identification and program planning. Journal of Applied Behavioural Sciences 7: 467- 492.

Delios, A., and W. J. Henisz. 2001. Japanese Firms’ Investment Strategies in Emerging Economies. In P. W. Beamish, A. Delios and S. Makino (Eds.), Japanese Subsidiaries in the New Global Economy. Cheltenham, UK; and Northampton, MA, USA: Edward Elgar

Denzin, N. K., and Y. S. Lincoln. 2000. Handbook of Qualitative Research (2nd ed.). Sage Publication, Inc., Thousand Oaks.de Wit, B., and Meyer, R. 1998. Strategy process, Content, Context. International Thomson Business Press, London.

Dubini, P., and H. Aldrich. 1991. Personal and extended networks are central to the entrepreneurial process. Journal of Business Venturing 6 (5): 305-313.

Elfring, T., and W. Hulsink. 2007. Networking by entrepreneurs: Patterns of tie-formation in emerging organizations. Organisation Studies 28 (12): 1849-1872.

Ellis, P. 2000. Social ties and foreign market entry. Journal of International Business Studies 31 (3): 443-470.

Etemad, H. 2004. Internationalization of small and medium-sized enterprises: a grounded theoretical framework and an overview. Canadian Journal of Administrative Sciences 21 (1): 1-21.

Evers, N., and J. Knight. 2008. Role of international trade shows in small firm internationalization: a network perspective. International Marketing Review 25 (5): 544-562.

Fuller-Love, N., and E. Thomas. 2004. Network in small manufacturing firm. Journal of Small Business and Enterprise Development 11 (2): 244-253.

Gummesson, E. 1991. Qualitative Method in Management Research: Revised Edition. California: Thousand Oaks, SAGE Publications.

Håkansson, H. 1982. International Marketing and Purchasing of Goods: An Interaction Approach: J. Wiley, Chichester.

Harvie, C. 2002. The Asian financial and economic crisis and its impact on regional SMEs. In C. Harvie and B.-C. Lee (Eds.), Globalisation and SMEs in East Asia 1: 10-42. Northampton, Massachusetts, USA: Edward Edgar.

Harvie, C., and B. Chye-Lee. 2003. East Asian SMEs: Contemporary issues and developments - An overview. In C. Harvie and Chye-Lee (Eds.), The Role of SMEs in National Economies in East Asia 2: 1-20. Cheltenham, UK; and Northampton, MA, USA: Edward Elgar.

Hashim, M. K., and R. Hassan, 2008. Internationalisation of SMEs: Options, incentives, problems and business strategy. Malaysian Management Review 43 (1): 63-76.

Hesse-Biber, S. N., and P. Leavy. 2006. The practice of qualitative research. California. Thousand Oaks: Sage Publication.

Holmlund, M., and S. Kock. 1998, Relationships and the internationalisation of Finnish small and medium-sized companies. International Small Business Journal 16 (4): 46-63.

Johanson, J., and G. Mattson. 1988. Internationalization in industrial systems - a network approach in global competition. Paper presented at the Prince Bertil Symposium at the Institute of International Business, Stockholm School of Economics, London: Croom Helm, cop.

Johanson, J., and J. E. Vahlne. 1977. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies 8 (1): 23-32.

Johanson, J., and J. E. Vahlne. 1990. The mechanism of internationalization. International Marketing Review 7 (4): 11-24.

Johanson, J., and F. Wiedersheim-Paul. 1977. The internationalization of the firm-four Swedish cases. In P. J. Buckley and Ghauri (Eds.). The Internationalization of the Firm (Published in 1999). London: International Thomson Publication.

Kock, S., J. Nisuls, and A. Söderqvist. 2010. Co-opetition: A source of international opportunities in Finnish SMEs. In Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness 20 (2): 11 – 125.

Korhonen, H., R. Luostarinen, and L. Welch. 1995. Internationalisation of SMEs: Inward outward patterns and government policy. Paper presented at the Department of Marketing/The Centre for International Management and Commerce, University of Western Sydney, Nepean.

Knight, G. A., and P. W. Liesch. 2002. Information internalization in internationalizing the firm. Journal of Business Research 55: 981-995.

Krueger, N. F. 2003. The cognitive psychology of entrepreneurship. In Acs , Z. J., and D. B. Audretsch (eds.), Handbook of Entrepreneurship Research. Springer, USA.

Liesch, P., and G. Knight. 1999. Information internationalisation and hurdle in small and medium entreprise internationalisation. Journal of International Business Studies 30 (1): 383-394.

Mahajar, A. J., and S. M. Carraher. 2006. The effectiveness of SMIDEC in Malaysia at assisting SMEs at exporting. Paper presented at the Academy for Global Business Advancement Third World Congress. Kuala Lumpur, Malaysia.

Matlay, H., and J. Mitra. 2004. The internationalisation efforts of growth-oriented entrepreneurs: Lessons from Britain. In H. Etemad (ed.), International Entrepreneurship in Small and Medium Size Enterprises: Orientation, Environment and Strategy. Cheltenham, UK; and Northampton, MA, USA: Edward Edgar.

May, T. 2001. Social Research: Issues, Methods and Process (3rd ed.). Berkshire UK: Open University Press.

Mejri, K., and K. Umemoto. 2010. Small-and medium-sized enterprise internationalization: Towards the knowledge-based model. Journal of International Entrepreneurship 8: 156-167.

Meyer, K., and A. Skak. 2002. Network, serendipity and SME entry into Eastern Europe. European Management Journal 20 (2): 179-188.

Mitchell, R. K., L. W. Busenitz, T. Lant, P. P. McDougall, E. A. Morse, and J. B. Smith. 2007. The central question in entrepreneurial cognition research. Entrepreneurship Theory and Practice 31 (1): 1-27.

Moen, O., and P. Servais. 2002. Born global or gradual global? Examining the export behaviour of small and medium sized enterprises. Journal of International Marketing 10 (3): 49-72.

Moha-Asri, A., and M. I. Bakar. 2002. Handbook of Small and Medium Enterprises in Asian Pacific Countries. New York: Noel Publications.

Mori, J. 2005. Malaysia’s Challenges to Industrial Linkage: Policy Coordination at Local and National Level. The Fletcher School, Tufts University.

Morse, J. M., and L. Richards. 2002. Read Me First For A User Guide To Qualitative Methods. California, USA: Sage Publications.

Mtigwe, B. 2005. The Entrepreneurial firm internationalization process in the Southern African Context: A Comparative Approach. International Journal of Entrepreneurship Behaviour and Research 11 (5): 358-377.

Nahapiet, J., and S. Ghoshal. 1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review 23: 242-66.

Naidu, G. M., S. T. Cavusgil, B. K. Murthy, and M. Sharkar. 1997. An export promotion model for India: implication for public policy. International Business Review 6 (2): 113-125.

Ninth Malaysia Plan. 2006. Ninth Malaysian Plan 2006-2010. Putrajaya, Malaysia: Economic Planning Unit, Prime Minister’s Department Malaysia.

NSDC. 2009. SME Annual Report 2008. Putrajaya, Malaysia: National SME Development Council Malaysia.

NSDC. 2011. SME Annual Report 2009/10. Putrajaya, Malaysia: National SME Development Council Malaysia.

Ojala, A. 2009. Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market. International Business Review (doi:10.1016/j.ibusrev.2008.1010.1002).

Peng, M. W., S. H. Lee, and J. J. Tan. 2001. The kereitsu in Asia: Implications for multilevel theories of competitive advantage. Journal of International Management 7 (4): 253-276.

Prashantham, S. 2005. Toward a knowledge-based conceptualization of internationalization. Journal of International Entrepreneurship 3 (1): 37-52.

Ramayah, T., O. Mohamad, M. Jaafar, A. R. Abdul Aziz, and S. S. Wong. 2010. Internationalization of Malaysian contractors. Journal of International Business and Entrepreneurship Development 5 (1): 18-27.

Reid, S. D. 1981. The decision-maker and export entry and expansion. Journal of International Business Studies 12 (2): 101-112.

Tambunan, T. T. T. 2011. Development of small and medium enterprises in a developing country: The Indonesian case. Journal of Enterprising Communities: People and Places in the Global Economy 5 (1): 68-82.

Tenth Malaysia Plan. 2010. Ninth Malaysian Plan 2006-2010. Putrajaya, Malaysia: Economic Planning Unit, Prime Minister’s Department Malaysia.

Thomas, A. B. 2004. Research Skills For Management Studies (1st ed.). London and New York: Routledge Taylor and Francis Group.

Sharma, D. 1993. Introduction: industrial network in marketing. In S. T. C. a. D. Sharma (ed.). Advances in International Marketing 5: 1-9.

Shepherd, D. A., and J. Wiklund. 2005. Entrepreneurial Small Business: A Resource-based Perspective. UK. Northampton; and Massachusetts USA: Edward Elgar Publishing Limited.

SMIDEC. 2002. SMI Development Plan (2001-2005) SMIDP. Kuala Lumpur, Malaysia: Percetakan Nasional Malaysia Berhad.

Vaghely, I. P., and P. A. Julien. 2010. Are opportunities recognized or constructed? An information perspective on entrepreneurial opportunity identification. Journal of Business Venturing 25: 73-86.

Webster, F. E. 1992. The changing role of marketing in the corporation. Journal of Marketing 56: 1–17.

Yli-Renko, H., E. Autio, and V. Tontti. 2002. Social capital, learning and the international growth of technology based new firms. Management International Review 11:279–304.

Yeung, H. W. C. 2004. International entrepreneurship and Chinese business research. In L. P. Dana (ed.), Handbook of Research on International Entrepreneurship. Cheltenham, UK: Edward Edgar.

Zahra, S. A., and J. C. Hayton. 2008. The effect of international venturing on firm performance: The moderating influence of absorptive capacity. Journal of Business Venturing 23: 195–220.

Zalan, T., and G. Lewis. 2004. Writing about methods in qualitative research: Towards a more transparent approach. In R. Marschan-Piekkari and C. Welch (eds.), Handbook of Qualitative Research Methods for International Business. Cheltenham, UK, and Northampton, USA: Edward Edgar.

Zhou, Y., and T. Xin. 2003. An innovative region in China: interaction between multinational corporations and local firms in a high-tech cluster in Beijing. Economic Geography 79 (2): 129-152.

Zucchella, A., G. Palamara, and S. Denicolai. 2007. The drivers of the early internationalisation of the firm. Journal of World Business 42: 268-280.



DOI: https://doi.org/10.22146/gamaijb.5489

Article Metrics

Abstract views : 1248 | views : 673

Refbacks

  • There are currently no refbacks.




Copyright (c)