Exploring determinants of internationalisation: the case of late starters

2017 ◽  
Vol 29 (2) ◽  
pp. 159-177 ◽  
Author(s):  
Christopher Karl Köhr ◽  
Giulio Malorgio ◽  
Maurizio Aragrande

Purpose The purpose of this paper is to explore the determinants of internationalisation among late starters in the wine sector. Strategic implications for small and medium enterprises (SMEs) in a young wine producing region are derived based on the findings. Design/methodology/approach Data were collected through a quantitative survey among 38 wineries that are engaged in export activity in the Romagna wine producing area (Italy). Both multivariate analysis of cardinal company data through multiple and fractional regression models as well as nonparametric analysis of Likert-type survey elements were carried out. Findings The study identifies several determinants that affect the export intensity of businesses in the sample: Resources within the business turn out to be important, as well as the choice of distribution partners. Characteristics of exported goods were found to differ on comparing intra- and extra-EU exports. Practical implications Competitiveness in the international marketplace is closely linked to the product quality, distribution network and productivity of a firm. Regional networks can help businesses to develop these factors, overcome export barriers and strengthen the competitiveness of a region as a whole. Originality/value This study investigated the determinants of internationalisation in a wine producing region which is considered a late starter of internationalisation in the wine industry and it is the first one spotlighting on a regional firm-level in the Italian wine industry.

2015 ◽  
Vol 27 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Humberto Nuno Teixeira ◽  
Isabel Lopes ◽  
Sérgio Sousa

Purpose – The purpose of this paper is to propose a new methodology to be used by small and medium enterprises to characterize their performance in quality, highlighting weaknesses and areas for improvement. The methodology aims to identify the main causes of quality problems and help to prioritize improvement initiatives. This is a methodology that intends to be easy to implement by companies with low maturity level in quality. Design/methodology/approach – Based on the literature review a methodology for diagnosing and prioritizing quality problems is proposed. Then two longitudinal case studies are performed to refine and validate the proposed methodology. The methodology is organized in six different steps which include gathering information about predetermined processes and sub-processes of quality management, defined based on Juran’s trilogy, and about predetermined results categories. Findings – The application of the methodology was successful in two case studies and a report was produced on the quality state of each industry, including a prioritization of the causes of poor performance. Research limitations/implications – The methodology may have to be adapted to better suit the needs of companies from different sectors, either by reviewing the processes, by integrating new tools or refining the existing ones. Practical implications – This paper presents a new methodology for identifying and prioritizing quality problems. Originality/value – Due to its simplicity and comprehensiveness, it is believed that the developed methodology can be applied periodically by companies as self-diagnostic and prioritization tool, aimed at continuous improvement.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mansur Ahmed Kazaure ◽  
Abdul Rashid Abdullah ◽  
Dahlia Binti Zawawi ◽  
Amer Hamzah

Purpose The study aims is to examine the determinant factors of small and medium enterprises’ (SMEs’) intention to adopt the Islamic crowdfunding model as alternative sources of finance. Design/methodology/approach Using a survey questionnaire, 385 responses were received from owners and managers of SMEs in three states (Kano, Kaduna and Katsina) of northwestern Nigeria and analyses using PLS-SEM 3.0 software. Findings All hypotheses were found to be significant. Research limitations/implications The research focused only on northwestern Nigeria; there is a need for further research to focus on other geographical zones in Nigeria. Practical implications Crowd funders and policymakers can use these findings to enable the adoption of the Islamic crowdfunding model. Originality/value The previous study has not examined the role of technology acceptance model in the adoption of the financial model; these findings contribute to the crowdfunding literature by filling this gap.


Author(s):  
Sunil Budhiraja

Purpose This paper aims to discuss various determinants of organizational readiness to change for India small and medium enterprises (SMEs) and proposes a framework to strengthen the employees’ readiness to change which is integral to organizational readiness for change (ORC). Design/methodology/approach This paper is based upon the subjective viewpoint of the author. Findings The paper brings forward the opportunities and challenges of Indian SMEs with a suggestive framework on employee readiness for change (ERC). Practical implications The paper will help SMEs consider a framework to assess ERC before implementing a change. Originality/value The exists no framework for Indian SMEs to look-up as a benchmark to assess their ORC and ERC. Hence the paper will contribute to the literature and will be a handy reference for SMEs.


Author(s):  
Victor Chukwunweike Nwokocha ◽  
Christopher Nwankwo

Purpose Despite the potential of SMEs in economic development, their activities have remained largely unsustainable in Nigeria. These enterprises are constrained by a number of challenges- high cost of production, poor power supply, high infrastructural deficit etc. which have made there operations largely unproductive. The purpose of this paper is to examine the effects of production subcontracting forms on the sustenance of small and medium enterprises as a panacea for achieving the targets of goal 8 of sustainable development goals (SDGs) in Enugu State, Nigeria. Design/methodology/approach The paper adopted a number of methods comprising of field observations, a reference to relevant literature and a questionnaire survey of 96 SMEs. The paper also adopted a quantitative approach comprising of simple descriptive statistics of mean and standard deviation as well as regression analysis to analyze the data. Findings This paper found that the three forms of production subcontracting (supplier, specialized and capacity subcontracting) identified in the paper were used by SMEs to achieve sustenance (cost reduction, risk reduction and access to resources) in their operations. The paper suggests that the sustenance of SMEs through the utilisation of the different forms of subcontracting can become a strategy towards achieving the targets of SDG 8 in Nigeria. Practical implications This paper has shown that the prevalent high cost of production and ever-increasing production risks, which are the common features of SMEs in Nigeria, can be mitigated through the various forms of production subcontracting analysed in this paper. SMEs, through seminars, workshops, entrepreneurship and business fares, can be encouraged to take up this strategy, considering its ability to address their various operational bottlenecks. Originality/value This study adds to the limited available evidence concerning the effects of subcontracting forms on the sustenance of SMEs in Nigeria. This study is the first to consider subcontracting forms and how they have led to sustenance SMEs in Nigeria.


2015 ◽  
Vol 16 (3) ◽  
pp. 490-517 ◽  
Author(s):  
Maurizio Massaro ◽  
John Dumay ◽  
Carlo Bagnoli

Purpose – The purpose of this paper is to examine whether strategic intent influences developing intellectual capital (IC) and if IC affects performance measured in terms of product and service diversification within small and medium enterprises over time. Design/methodology/approach – This study discusses if and how structural equation models can be located within the third stage of IC research, and subsequently presents an analysis developed using 1,392 questionnaire responses through a temporal lens. Findings – Empirical results show how relational, human and structural capital strongly connects to support a firm’s performance measured in terms of product and service diversification. Additionally, IC and strategic intent influence each other creating a constraint effect on one side and an ambition effect on the other. Interestingly, the constraint effect is much higher than the ambition effect, and this falls in line with a contingency approach to strategic intent. Practical implications – Several practical implications are developed. First, results show that high regulation where firms can offer mandatory product/services can limit IC development. Therefore the findings contribute to the dialogue between policy makers, managers and businesses. Second, business schools should consider how strategic intent contributes to developing IC in order to design future curricula for accounting and management studies. Third, firms that operate in similar contexts should pay attention to managerial myopia due to low competition where a significant part of firms’ revenues is from mandatory product/services. Originality/value – This paper contributes to the existing literature by investigating how IC affects strategic intent and how strategic intent fosters IC development. Additionally, findings build on existing theory, helping to understand how IC affects performance measured in terms of portfolio diversification.


2018 ◽  
Vol 25 (5) ◽  
pp. 1597-1622 ◽  
Author(s):  
Himanshu Gupta ◽  
Mukesh Kumar Barua

Purpose Innovation is a prerequisite for economic and technological growth of any organization. Identifying enablers of innovation can help managers accelerate the process of economic growth. The purpose of this paper is to identify the prominent enablers of innovation in small and medium enterprises (SMEs) that can help overhauling organizations and benefit them economically. Design/methodology/approach A comprehensive literature review and expert’s opinions have been applied to identify enablers of innovation. A case of automotive component supplier is considered for conducting the research. A coalescence of Grey and DEMATEL methodologies has been incorporated to first rank the enablers of innovation based on their importance and then identify the causal relationship among these enablers by characterizing enablers into causal and effect groups. Findings A few important enablers, namely, entrepreneur traits, knowledge management, resources for innovation, and linkage capabilities, have been identified as prominent enablers for successful innovation in SMEs. Practical implications This paper identifies enablers of innovation in SMEs and the causal relationship between these enablers. The identified enablers and the causal relationship between these enablers will help managers of small organizations in selecting the enablers that need to be focused on, which, in turn, can drive other enablers of innovation, thus saving time and resources of the organizations. Originality/value This paper uses a novel Grey–DEMATEL methodology to identify the causal relationship among enablers and also contributes to the literature on innovation by identifying enablers of innovation in SMEs.


2019 ◽  
Vol 35 (2) ◽  
pp. 16-18

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Pursuing an appropriate strategy can enable micro, small, and medium enterprises in developing countries to significantly improve their performance. Such firms should typically be best served by a cost leadership competitive strategy, the impact of which can be increased through an emphasis on key components of quality management. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosa Portela Forte ◽  
Ana Rita Sá

PurposeThe present study seeks to assess whether the firm's location and agglomeration economies affect the firm's export propensity.Design/methodology/approachThis work is based on a sample of 20,234 Portuguese manufacturing small and medium enterprises (SMEs) and resort to the estimation of a probit model.FindingsEmpirical results show that the location and agglomeration economies have an important role in determining the firm's export propensity. In particular, the study concludes that SMEs located in coastal areas or close to the border are more likely to export. Furthermore, the study also concludes that specialization economies are an important driver of small and medium-sized firms' export propensity while export spillovers are particularly relevant for micro firms. However, urbanization, measured through firms density in NUTS3 region, negatively affects firms' export propensity, which may be due to high congestion costs in the regions with a high firms density.Originality/valueThis study focus on the determinants of the decision to export or the export propensity, particularly the external factors such as the firm's location and agglomeration economies. This is a relatively neglected topic in the literature that has focused on the determinants of export intensity.


2020 ◽  
Vol 30 (2) ◽  
pp. 265-278
Author(s):  
Channappa Santhosh

Purpose The purpose of this paper is to analyse the different drivers’ and its impact on the export entrepreneurship (EE) of small and medium enterprises (SMEs). Design/methodology/approach The proposed conceptual framework has been tested through analysis of a sample of 102 internationalized (exports) SMEs of the Engineering industry in the Bangalore district, Karnataka, India. Findings Results reveal that firms with younger entrepreneurs who have industry-specific experience and different social ties are able to achieve higher performance. Practical implications Overall, results facilitate understanding of the importance of entrepreneurial capabilities to successfully formulate and strategize their international efforts to achieve better performance in the international market. Originality/value The study enhances the importance of understanding the role of different drivers on EE in the context of an emerging economy where studies are limited and largely unexplored till date.


2016 ◽  
Vol 7 (1) ◽  
pp. 62-84 ◽  
Author(s):  
Osama Alaskari ◽  
Mohammad Munir Ahmad ◽  
Ruben Pinedo-Cuenca

Purpose – The purpose of this paper is to develop a methodology that can help small and medium enterprises (SMEs), in the manufacturing sector, to select an appropriate lean tool for the company which will maximum benefits from adopting the tool. Design/methodology/approach – This study focuses on the selection of an appropriate lean tool for manufacturing SMEs. The methodology contains a quantitative approach that can assist SMEs in identifying the appropriate lean tool. A literature review, collation of experts’ opinions via a questionnaire and a case study (to provide a guideline as to how the developed methodology may work) are presented in this research. Findings – The findings revealed that the proposed methodology was effective in identifying the appropriate lean tools for companies, according to the key performance indicators in the manufacturing SME sector. Practical implications – The developed methodology can be used by manufacturing SMEs as a decision support system to enable the representatives of the company to make an informed decision regarding the selection of the most appropriate lean tool (i.e. that will address the most important issue that the company is experiencing). The strength of using this methodology is that appropriate lean tool can be ascertained relatively easily and inexpensively. There is the prospect of this methodology being applicable to most types of SMEs. Originality/value – This methodology has proven to be useful for recommending the application of lean tools in a company’s attempt to become lean, bridging the gap identified in the literature review.


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