This paper aims to study the international expansion of small and medium-sized enterprises (SMEs) in an emerging economy. Mathews ' (2006: 5-27) linkage-leverage-learning (LLL) model is the framework applied to analyse the process of international expansion of SMEs. To operationalise the study of the barriers, the LLL model was linked to the work of Leonidou (2004: 279-302). The data was collected from 125 SMEs operating in Ningxia, China, and then analysed using multivariate regressions; the models used the firms' export intensity at the regional, national and international level as dependent variables. Four models were run: two analysing the internal and external barriers hindering firms' international expansion, and the other two models studying the characteristics of Chinese international companies (state funding and ownership) as independent variables. The results show that 12 of the barriers defined by Leonidou (2004) are hindering the expansion of Ningxia's SMEs, that the ownership from the state does not play an Asia Pac J Manag (2011) 28:737-759
General rightsThis document is made available in accordance with publisher policies. Please cite only the published version using the reference above. Full terms of use are available: http://www.bristol.ac.uk/pure/about/ebr-terms access to public financial resources; participation of the government in ownership; access to public procurement contracts; adverse regulatory and inconsistent legal frameworks, and public assistance on information and knowledge about markets. The main conclusion is that SMEs appear to base their international expansion on private capabilities, rather than on support from the government; in addition, the perceived barriers for the international expansion of these firms may be mainly internal, rather than institutional.
Purpose -The paper aims to critically analyse the relevant literature on the international expansion of China's small-and medium-sized enterprises with the aim of highlighting the main topics analysed by scholars and identifying areas for future research. Design/methodology/approach -The paper reviews the works on the international growth of China's SMEs published in selected peer-reviewed English-language journals vis-à -vis what has been published on Western SMEs. It does this by, first, studying the literature at both firm and industry levels and, second, by analysing the specific characteristics of small business from China along with the particularities of the Chinese business environment. Findings -The paper shows that two main areas are in need of further research: the impact of the Chinese business environment on the international expansion of SMEs, and the need to understand different elements of the process to develop a strong firm-level body of literature. Originality/value -The paper highlights the need to deepen the understanding of the process leading to SMEs' expansion beyond China's borders to conclude with the identification of areas for future research.
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