Exploring Determinants of Internationalization Among Small And Medium Enterprises From An Emerging Markets

A New Conceptual Lens

Abstract

 The past two decades have seen a sharp increase in academic studies and public policy research concerned with the internationalization of small and medium enterprises (SMEs). From this perspective, it is the influence of organizational and environmental characteristics on the internationalization process that have been the focus of scholars. Nevertheless, little is yet known of the internationalization determinants of SMEs in developing countries, and a lack of conceptual evidence in the literature provides strong ground for this research. This study fills the void by documenting the relationships between organizational and environmental characteristics specifically, entrepreneurial orientation, global mindset, network relationships and government support and internationalization. The study is expected to make a valuable contribution to the knowledge of SME internationalization in developing countries, especially in the context that relates internationalization to organizational and environmental characteristics. It also has implications in the form of best practices for Malaysian SMEs. Managers should be aware of the complexities of internationalization and the necessity to examine various aspects of SMEs’ internationalization frequently. Skills, competencies, and management know-how are not only crucial traits for entrepreneurs to develop to succeed in internationalization, but they are also critical to a company’s advantageous positioning in the global market. At the same time, it can provide directions for the government and policy-makers in their effort to develop policies and programs for the betterment of this particular business community.