Application of HRM’s Universal Model: an examination of people vs institutions as barriers of internationalization for SMEs in a small developing country

Mendy, John and Rahman, Mahfuzur (2018) Application of HRM’s Universal Model: an examination of people vs institutions as barriers of internationalization for SMEs in a small developing country. Thunderbird International Business Review . ISSN 1520-6874

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Abstract

Although the importance of people and institutions has been highlighted in MNE studies, the association between people, institutions and the internationalization of SMEs is under explored from a small developing country context. We examine theories subsumed under the Universal Model of HRM onto SMEs to study the hypothesized people and institutionally-orientated barriers posed to SMEs’ internationalization. Using quantitative analysis, the impacts of the barriers on internationalization are highlighted with particular attention to employer attractiveness. Following extant literature review, this study has used primary data collected through questionnaires from 212 Bangladeshi SMEs. We developed and validated partial least square based structural equation model (PLS-SEM) to assess the impacts and successfully framed People versus Institutional barriers as a second order hierarchical reflective model which has not been done previously. Given their marginal significance over institutions, people-oriented cultural barriers should be included as an extension of the Universal Model to study SME internationalization

Keywords:Universal Model, SMEs, people, emerging economies, Internationlization, barriers
Subjects:N Business and Administrative studies > N600 Human Resource Management
N Business and Administrative studies > N120 International Business studies
Divisions:Lincoln International Business School
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ID Code:31720
Deposited On:17 Apr 2018 12:10

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