Barriers and Drivers of International Entrepreneurship among SME's

By

ABSTRACT

International business and entrepreneurship were two different areas of study that seldom intersected. While international business researchers focus their studies on international activities of large multinational corporations, academics in entrepreneurship concentrate their works on creation and management of small and medium-sized enterprises. However, with the of passage of time and the conversion of the world in to a global village, the small and medium size enterprises have started to explore entrepreneurship activities on the global scale. This activity is called international entrepreneurship. International entrepreneurship is beneficial for an SME and the global economy overall, as it promotes business in different areas of the world. Numerous things either can drive the activity of international entrepreneurship for an SME or can form a barrier in the international entrepreneurship of SME's. A number of SME's think that things like opportunities for growth and networking in the target country are drivers of international entrepreneurship for SME's. While, lack of political and economic stability and financial constraints are the barriers for a Small and medium sized enterprises to go for activities of international entrepreneurship.

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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TABLE OF CONTENTS

ABSTRACTII

ACKNOWLEDGEMENTIII

DECLARATIONIV

LIST OF TABLES AND FIGURESIX

CHAPTER 1: INTRODUCTION1

1.1 Introduction1

1.2 Research Questions2

1.3 Problem Statement2

1.4 Significance of the study2

1.5 Expected Research Contributions2

1.6 Conceptual framework3

CHAPTER 2: LITERATURE REVIEW6

2.1 Introduction6

2.2 International Entrepreneurship6

2.3 Measurement and Dimensionality of International Entrepreneurship Activities9

2.4 Entrepreneurial Orientation11

2.5 Innovativeness13

2.6 Risk-taking14

2.7 Pro-activeness14

2.8 Internationalization of Entrepreneurial Firms15

2.9 Human Capital16

2.10 Tacit Knowledge and Human Capital17

2.11 Professional Services Skills18

2.12 Internationalization Theories18

2.13 International Product Life Cycle (IPLC)19

2.14 International Stage Theory20

2.15 Transactional Cost Approach Theory21

2.15.1 Eclectic Theory22

2.16 New Venture View of Internationalization23

2.17 Internationalization of Services24

2.18 Internationalization of SMEs25

CHAPTER 3: METHODOLOGY29

Introduction29

3.1 Overview of Qualitative and Quantitative Research Approaches30

3.2 Overview of the Mixed Method Research Approach31

3.3 Research Method and Design Appropriateness32

3.4 Benefits and Disadvantages of Mixed Method33

3.5 Informed Consent34

3.6 Confidentiality34

3.7 Validity35

3.8 Reliability36

3.9 Data Analysis37

3.9.1 Qualitative Data Analysis37

3.9.2 Quantitative Data Analysis37

3.10 Quality and Verification38

3.11 Reliability/Dependability39

3.12 Validity39

3.13 Ethical Considerations40

3.14 Data Security: Participant Anonymity and Document Retention40

CHAPTER 4: DISCUSSION AND ANALYSIS42

4.1 Characteristics of Entrepreneurial SMEs42

4.1.1 Passive vs. Active Exporting47

4.2 Factors affecting internationalization of entrepreneurial SME's48

4.2.1 Environmental Uncertainty48

4.2.3 Market Turbulence49

4.2.4 Technology Turbulence49

4.2.5 Heterogeneity50

4.2.6 Dynamism50

4.2.7 Hostility51

4.3 Questionnaire analysis52

4.3.1 Drivers for internationalization52

4.3.1 Motive of growth52

4.3.2 Knowledge assets of the firm54

4.3.3 Networking, Supply Chain, and social ties55

4.3.4 Domestic and Regional Market Drivers56

4.3.5 Summary58

4.3.2 Barriers to international entrepreneurship59

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS61

5.1 Recommendations61

5.2 Limitations61

5.3 Considerations for future research62

5.4 Conclusion63

REFERENCES66

APPENDIX A79

APPENDIX B81

APPENDIX C82

LIST OF TABLES AND FIGURES

TABLE 1: A LIST OF RELATED ACTIVITIES44

TABLE 2: DRIVERS OF INTERNATIONAL ENTREPRENEURSHIP45

TABLE 3: BARRIERS IN INTERNATIONAL ENTREPRENEURSHIP47



FIGURE 1: CONCEPTUAL FRAMEWORK OF THE RESEARCH STUDY5

FIGURE 2: GROWTH MOTIVE52

FIGURE ...