The barriers of internationalization for SMEs in Bangladesh

Rahman, Mahfuzur, Lodorfos, George and Uddin, Moshfique (2013) The barriers of internationalization for SMEs in Bangladesh. International Journal of Accounting and Business Management, 1 (1). pp. 92-115. ISSN 2289-3717

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One of the key objectives of this study is to identify the main barriers to internationalization for Bangladeshi SMEs. To fulfil this objective a hierarchical, 2 order model with four constructs was developed and tested using PLS path modelling .The four constructs identified from the literature review as the main areas that could hinder Bangladeshi SMEs internationalisation process are political, economic, social and technological. These represents the four first order variables that in the second order are constructed by 18 (manifest variables) indicators.
The findings suggest that, political barriers seem to be the most influential barriers for the internationalization of Bangladeshi SMEs as they explain 83% of the overall variance. Followed by the social barriers with 79% of the overall variance, economic barriers with77% and technological barriers with 70%. Though the ranking has been done based on the relative power of individual constructs, the magnitude of difference is relatively small. Therefore, it can be argued that all these constructs are significant and therefore should be given equal attention.
Similarly the PLS path model analysis shows that political and social barriers are more dominating over economic and technological barriers in Bangladesh.
This study extends our knowledge on the barriers to Bangladeshi SMEs’ internationalization. Therefore, academic researchers will be able to study more in depth the identified constructs and will assist policy makers and practitioners to develop internationalisation strategies and set up strategic priorities.

Additional Information:Paper given at Ascent International Conference 2013, Kuala Lumpur, Malaysia, April 11-12 2013
Keywords:SMEs, Internationalisation, Internationalization
Subjects:N Business and Administrative studies > N120 International Business studies
Divisions:Lincoln International Business School
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ID Code:11771
Deposited On:04 Sep 2013 14:03

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