Issues faced by SMEs in the internationalization process: results from Fiji and Samoa

Abstract

Purpose -The purpose of this paper is to scrutinize the issues, challenges, and impediments coming in the way of small-and medium-sized enterprises (SMEs) internationalization in small developing nations of South Pacific like Fiji and Samoa. Design/methodology/approach -The paper encompasses both quantitative and qualitative data. Analyses of antecedents are descriptive in nature, while establishing the relationship between intervening variables and outcomes are quantitative. For quantitative data, structured questionnaires are used, while for the collection of qualitative data, archival and library research methods are employed. Structured questionnaire is used to collect data from 118 and 78 sampled respondents in Fiji and Samoa, respectively, and statistical analysis is performed using Statistical Package for the Social Sciences package. Findings -These research findings pinpoint that the problem lies in evaluating the nature of issues affecting internationalization of SMEs. The results also show that the performance of Fijian and Samoan SMEs is same across different business sectors and those SMEs in these two countries exhibit different change patterns in their export growth.Research limitations/implications -The scope of the paper is limited only to the SMEs in Fiji and Samoa and cannot in any way be generalized to large firms. Practical implications -SMEs seeking to internationalize will need to learn a lot about the internal and external factors impacting their organizations. Many a times entrepreneurs believe that through sustained planning, they can reduce the shocks resulting from environmental uncertainty, however, in reality some of them may be able to benefit while others despite planning may not be able to overcome growth-related problems, as they may require reactive action. Therefore, learning is essential in international expansion and so is having a clear understanding of the environment that entrepreneurs operate in. Future research should seek to highlight documented cases of SME internationalization. Originality/value -This paper is one of the important studies taken in the context of Pacific SMEs. The research that has been conducted in the past are mostly confined to Asian countries, with very little in the area of SME internationalization. The findings of this paper will have relevance for policy making and supportive measures at government levels for SME internationalization.

The Barriers and Motives of Smes Internationalization: The Insights Into the Theory Development

“…Agndal and Chetty (2007) defined internationalization as the process, focused on dynamic international activities of the firm and suggested the opportunities to change the strategy in different directions. Other scholars assume that internationalization is not limited by the firm's export (Singh et al 2010). Thus, internationalization comprises trade activities, inter-governmental cooperation, establishment of alliances, joint ventures and foreign subsidiaries, which are formed taking into consideration globalization forces, social, economic and cultural circumstances.…”

Market Orientation of SMEs in Southeast Asia: An Empirical Analysis

“…The positive effect of entrepreneurship on economic development is well established (Boettke & Coyne 2003;Acs 1992), as is the correlation between international trade and economic growth (Hipsher 2008;Broda & Weinstein 2005). Nations have therefore embraced the formation and internationalization of SMEs 1 (Singh, Pathak & Naz 2010;Arinaitwe 2006) to boost their economies and standards of living.…”

As capacidades dinâmicas para a inovação e os padrões de internacionalização de empresas de base tecnológica: um estudo de casos múltiplos com PMEs brasileiras

“…The Uppsala Model affirms that there is a progressive development of the firm's commercial activities in international markets, along the "establishment chain", which begins with no regular export activities to evolve to export via independent representatives/agents, sales subsidiary and production/manufacturing (Johanson & Wiedersheim-Paul, 1975, p. 307). Besides these international operation modes, there are others which also may evolve from exporting, such as international alliances, non-equity alliances, joint venture, global sourcing, sales subsidiary and the FDI (Grandinetti & Mason, 2012;Olejnik & Swoboda, 2012;Sass, 2012;Singh, Pathak, & Naz, 2010;Testa, 2011;Tuppura, Saarenketo, Puumalainen, Jantunen, & Kylaeheiko, 2008).…”

“…The ancillary themes are the Internationalization Process, the International Operation Modes, the Internationalization Theories, the Internationalization Strategies and the Small Business Internationalization Models. As mentioned in the literature, there are numerous studies that investigate the MNCs 'strategies and entry forms, mainly from North America, Western Europe and Japan (Singh et al, 2010). However, even if there is an extensive literature dedicated to enlighten the internationalization process of SMEs, there are promising possibilities of researches to contribute to this theme (Bell et al, 2003;Kuivalainen et al, 2007;Olejnik & Swoboda, 2012;Tuppura et al, 2008).…”

“…The subdivision of these modes are the business networks and the cross-border clustering, which aims to position the organization strategically in international markets through the mediation of foreign partners without necessarily involve capital commitment, and into equity and non-equity international alliances, which involve financial investments (Majocchi, Mayrhofer, & Camps, 2013;Singh et al, 2010). The first refers to foreign relations, which entails equity investments for a determined period, such as joint ventures.…”