Impact of Degree of Internationalization on Sme’s Performance

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Impact of degree of internationalization on SME’s performance (A case study textile industry in Pakistan)

BILAL INAM
SHOAIB ANEES
MUHAMMAD AMJAD
HAFIZ FASAHAT IQBAL
ZUBAIR KHAN
QASWAR ABBAS
MBA 4TH Semester (2010 – 2013)
INSTITUTE OF MANAGEMENT SCIENCE
BAHAUDDIN ZAKAIRYA UNIVERSITY, MULTAN

Year 2012
Project Assigned for
Application of International Business
Institute of Management Sciences, B. Z. University, Multan

ACKNOWLEDGEMENT

By the grace of Almighty Allah, we’ve been able to present this report, on “international business”. We tried our best to highlight all aspects of “impact of degree of internationalization on SME’s’ performance”.

The project is the outcome of weeks of hectic work. We consult with several books; we also took material from the internet to complete our project.

In the end, we would like to express our deep feelings for “Ma’am javeria Abbas” for giving us the opportunity.

Impact of degree of internationalization on SME’s performance

(A case study Textile industry in Pakistan)

BILAL INAM, SHOAIBANEES ,MUHAMMAD AMJAD, HAFIZ FASAHATIQBAL, , ZUBAIR KHAN, QASWAR ABBAS

Abstract

The fast growing of multinational firms has been a distinct feature of globalization in the developing countries, such as in Pakistan Many of the emerging multinational firms are small and medium enterprises (SME). The textile industry SMEs, in particular, have been at the forefront of making outward investment. The paper empirically studies the impact of internationalization on the performance of SMEs, which have invested overseas. The paper also explores the effect of marketing, firm size, and managerial orientation on firm performance. Based on survey technique for 26 textile SME’s in Pakistan,(Multan, Lahore, Faisalabad) the paper finds a positive correlation between internationalization and firm performance. This study discovers that marketing has weak predictive power of the firm performance. The size and age of the firm are not found adequate predictors of firm performance.

Keywords: textile industry, survey technique, SME’s, size of firm , managerial aspect, marketing technique

INTRODUCTION

Home country markets have opened to foreign companies. Small and medium enterprises face the competitive pressure of both domestic and overseas rivals. Small and Medium Enterprises (SMEs) are increasingly operating in international markets. Trade liberalization and the international competition exert twin pressures on firms. They need to maintain a sustainable competitive advantage owing to the complexities of international trade. New ways are required to compete Home country markets have opened to foreign companies. Small and medium enterprises face the competitive pressure of both domestic and overseas rivals. SMEs respond by entering foreign markets. The present paper studies the impact of internationalization on SME performance. The paper is divided into two sections. Section I is a general discussion on study and identification of SMEs reviews the extant literature on SME internationalization and its various aspects. Section II is about research objective, proposition formulation, data analysis and results. Pakistan is now facing social issue related to electricity failure. Gas failure and many more.

Literature review

With growing competitive pressures, companies are increasingly deploying the Internet as a strategic tool. The use of information and communication technology (ICT) not only impacts on communication, control and collaboration processes, it also promises a fast-track option of international expansion. The deliberate use of ICT for internationalization purposes is termed ‘‘internetalization’’ and ‘‘active online internationalization’’ (AOI) It is a form of foreign market entry which...
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