Small and Medium Enterprises Internationalization and Performance in Emerging Economies: New Empirical Perspectives

Abstract

 Academic and policy research on the internationalization of small and medium enterprises (SMEs) has exploded in the last two decades. Scholars have focused on the relationship between internationalization and performance from this standpoint. Despite this, little is known about the relationship between internationalization and SMEs' performance in emerging countries, and empirical evidence to support the current study is scarce. The relationship between internationalization and the success of SMEs in emerging economies is investigated in this study, which fills a gap. Using a quantitative survey methodology, data was collected from a sample of Malaysian SMEs engaged in international business via a self-administered questionnaire. The data was investigated using structural equation modelling to evaluate associative relationships between internationalization and corporate performance. The findings of this study give important empirical evidence supporting the positive impact of internationalization on the financial and non-financial performance of Malaysian SMEs. The study will surely add to the understanding of how SMEs in emerging nations are impacted by internationalization, particularly in terms of financial and non-financial performance. It has repercussions for Malaysian SMEs in the form of best practices. Managers should be aware of the barriers to internationalization as well as the importance of regularly examining various areas of SMEs' internationalization. Entrepreneurs must build not only skills, competencies, and management know-how to succeed in internationalization, but they must also be important to a company's competitive positioning in the global market. Simultaneously, it can help the government and politicians create legislation and programmes that will benefit the industry.