The impacts of network relationships on SMEs' internationalization process

Abstract

In today's globalization era, more and more firms are striving to have an international presence, even though they face many challenges. Based on a multisite case study method, this article examines how indigenous Malaysian small and medium‐sized enterprises (SMEs) use their network relationships to facilitate their internationalization process. The evidence from the case of three software firms and one control firm in this study support the firms' internationalization process in the ways that network relationships trigger and motivate them to internationalize, influence their marketselection decision and mode‐of‐entry decision, help them gain initial credibility, allow access to additional relationships and established channels, help in lowering cost and reducing risk, and influence their internationalization pace and pattern. © 2006 Wiley Periodicals, Inc.

Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms

“…However, each firm is constrained in terms of internal resources and building strong and long-lasting relationships with customers, suppliers and partner firms endowed with complementary competence and resources may help finding and exploiting new market opportunities (Andersson, Blankenburg Holm, & Johanson, 2005). Network components then may fuel the necessary information to dramatically reduce high export entry costs and may help the firm to establish new contacts (Andersen & Buvik, 2002;Andersen & Strandskov, 1997;Chetty & Patterson, 2002;Coviello & Munro, 1995;Zain & Ng, 2006). In this respect, network actors' experience abroad serves as an indirect and efficacious learning channel especially when the firm has to overcome the initial uncertainty associated with entering culturally unfamiliar and highly competitive markets.…”

Entry barriers of small and medium‐sized software firms in the Japanese market

“…Focusing on a single sector in this study helps to complement existing studies related to the software industry (Bell, 1995(Bell, , 1997Coviello & Munro, 1997;Moen et al, 2004;Zain & Ng, 2006) and reduces the potential for confusing results (Rouse & Daellenbach, 1999). In addition, covering a single sector enables comparing research results to earlier findings in the software industry, especially those focusing on challenges in the internationalization process (e.g.…”

“…In addition, research results (Bell, 1995;Coviello & Munro, 1997;Loane et al, 2004;McNaughton, 1996;Moen et al, 2004;Spence, 2003;Zain & Ng, 2006) related to the internationalization of small and medium-sized software firms originating from Canada, Finland, Ireland, New Zealand, Norway, Malaysia, and the USA, imply that these firms are using similar routes, networks, and strategies in their internationalization processes.…”

“…These studies have mainly examined the importance of network relationships (Bell, 1995;Coviello & Munro, 1997;Moen et al, 2004;Zain & Ng, 2006), foreign market channel decisions (McNaughton, 1996), and export problems (Bell, 1997) in the internationalization process of software firms. Despite these investigations, there seems to be a lack of research focusing on the entry barriers of small and medium-sized software firms.…”

Internationalization and Performance in European Market: An Asian Perspective

“…They also have advantage over developed country firms such as higher flexibility and efficiency as well as knowledge seeking behavior which enables them to develop capabilities (Chang, 2011). Networking has significant role in internationalization process of SMEs from emerging economies and it was found that three main sources of networking for SMEs are government institutions, business associates and personal relations (Senik, Ladd, Entrekin, & Adham, 2011;Zain & Ng, 2006).…”