Limitations for Sme Internationalisation

Topics: International trade, World Trade Organization, International economics Pages: 18 (5917 words) Published: February 23, 2011
Table of Contents

Literature review3
SME internationalization6
Internal barriers11
External barriers17
List of literature22

Literature review
The first article I used was "SMEs' Barriers Towards Internationalization and Assistance Requirements in the UK” published in Journal of Small business and Entrepreneurship. Existing studies have identified a number of barriers, both perceived and actual, that affect firms’ internationalization. Arguably, these factors have primarily been identified via an exporting perspective that has tended to feature heavily in previous studies in comparison to firms engaged in multiple modes of market entry (joint ventures, licensing, etc.). This paper reports on findings from a survey of UK SMEs, investigating managers’ perceptions of barriers towards internationalizing and support required to overcome those same barriers. Analysis of survey data and subsequent findings from interviews indicate that differences exist between two groups of firms, that is, those that employ an export strategy compared with those that employ multiple modes of market entry in respect of both perceived barriers and assistance requirements. Implications for policy makers are also discussed that contribute to work at the public/private sector interface. Another article I used while analysing motivating factors and stimulus for internationalization for SME is «An analytical review of the factors stimulating smaller firms to export: implications for policy makers». In this paper it’s approved that although exporting can offer many benefits to smaller manufacturers, a large number of these firms refrain from export operations as a result of insufficient stimulation. This paper seeks to critically analyse and creatively formulize the reasons why SME’s go international. The review revealed that export stimulation stems from a variety of factors such as time, spatial and industry context. Also this article contains general information about SMEs. Next article - Investigating Barriers to SME Growth and Development in Transition Environments: A Critique and Suggestions for Developing the Methodology .The article discusses a study which examines the barriers to growth and development of small and medium enterprises (SME) in transition economies in Europe. The study has identified several factors and limitations for growth, which include environmental, management problems and skills-related issues. The effectiveness of the policies directed to remove these barriers are explored as well as the independent and interaction effects of these barriers. Research assumptions, definitional issues and conceptualizations are some of the methodologies used in the study. One of the most important articles for writing this essay was “An Analysis of the Barriers Hindering Small Business Export Development”. This article offers a comprehensive analysis of 39 export barriers extracted from a systematic review of 32 empirical studies conducted on the subject. These have been classified into internal (incorporating informational, functional, and marketing) and external (comprising procedural, governmental, task, and environmental) barriers. This theory was mainly used in the second part of the essay for the description of possible classifications of the barriers. Another article I used was “Towards an Integrative Model of Small Firm Internationalization”. This article is devoted to “born global” SME. Firm internationalisation has long been regarded as an incremental process, wherein firms gravitate towards `psychologically close' markets and increase commitment to international markets in a gradual, step-wise, and manner through a series of evolutionary `stages'. However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by `born global firms'. Typically, these are smaller entrepreneurial firms that internationalize from inception, or start to...
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