Supporting SMEs’ internationalisation through a deeper understanding of human and technology barriers

Abstract

Purpose The purpose of this paper is to investigate small- and medium-sized enterprises’ (SMEs) internationalisation from an emerging market perspective. It explores and applies human resource management (HRM) processes to small businesses’ internationalisation efforts in order to ascertain the extent to which human- and technology-oriented barriers to internationalisation can be better understood and their processes better managed by SMEs. Design/methodology/approach The data collection and analysis involved a mixed method technique so as to identify the two dominant barriers faced by SMEs at the employer and employee levels. By using primary survey data obtained from 212 Bangladeshi SMEs, a partial least square based structural equation model was successfully validated and its development enhanced the comparison of processes involved in managing people and technology-type barriers. Findings The research results highlight the importance of HRM processes in the proper management of both human and technology-type barriers, which are equally as significant to SMEs’ internationalisation. Practical implications The results highlight the urgent need for governments in emerging economies to prioritise SMEs’ internationalisation and to dedicate resources and processes in order to effectively optimise economic and social dividends. The practical, theoretical and methodological implications of the paper raise opportunities for further research in SMEs’ internationalisation and people management processes and practices as well as new policy guidelines. Originality/value The examination of the link between humans and technology is a much under-represented area in developing countries and the actual contribution of effective HRM processes in the context of SMEs’ internationalisation is missing. Applying HRM processes to these aspects serves to deepen the knowledge of small businesses’ internationalisation efforts and the contributed model enhances professional practice and theory development in these disciplines and in emerging economies.

The Potential Of Internationalization Of Small And Medium Micro Enterprises In SAWO Leather Crafts, Magetan District, East Java, Indonesia

“…[20] John Mendy's research results highlight the importance of the HRM process in the proper management of human and technological constraints, which are as important as the internationalization of SMEs. [21] Research by Syed Zamberi Ahmad found that SMEs' motives for international expansion are diverse and that SMEs still face many institutional challenges, which prevent them from making a larger contribution. [22] The research conducted by Mohammed Ngoma in this study determined a significant relationship between the dimensions of entrepreneurial orientation (EO) and the internationalization of SMEs.…”

“…It is in line with John Mendy's research that the importance of managing Human Resource Management from the constraints of limited human resources and technology is as important as internationalization. [21]International trade procedures require resources capable of managing this. Most MSMEs in Indonesia, including the Magetan leather handicraft business, do not have this capability, so reaching the international market will be very difficult.…”

Performance management problem of four small and medium-sized enterprises (SMEs): towards a performance resolution

“…Hence, different proposals in the literature seek to address the underperformance problem by demystifying the factors that may have led to the current situation (Ndiaye et al, 2018). Other scholars have added their voices onto the impact of HRM and management practices in boosting organisational and individual performance (Schmelter et al, 2010;Mendy and Rahman, 2019). Limited success has been registered in previous studies on how SMEs can resolve the myriad of factors that appear to have contributed to such a problem (Rehman and Anwar, 2019;Chibelushi and Costello, 2009).…”

“…what employees see as the actual problem and, more importantly, how they think this could be resolved). Although the paper's findings and its data were collected as part of a longitudinal study between 2004 and 2011, the results bring fresh insights into how to resolve the ongoing SME underperformance problem whilst still contributing to create greater awareness, fresh insights and understanding of performance management issues in SMEs (Sok et al, 2016;Mendy and Rahman, 2019).…”

Evaluating the performances of over-the-counter companies in developing countries using a stochastic dominance criterion and a PSO-ANN hybrid optimization model

“…Thus, this paper adds to the limited literature relating to the use of PSO and ANN for businesses in developing countries. Developing countries generally tend to have inadequate infrastructure, which could cause additional barriers to business (Mendy and Rahman, 2019;Riahi and Hammami, 2019). Indeed, Mertzanis (2019) pointed out that firms experience financial constraints across developing countries.…”