The CAGE Around Internationalisation of SMEs and The Role of Government

Igwe, Paul Agu and Kanyembo, Frederick (2019) The CAGE Around Internationalisation of SMEs and The Role of Government. In: International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants. Emerald Publishing Limited, UK, pp. 173-188. ISBN 9781787695641

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Firms are affected by resources access, capability and unfavourable business environment, but there is little research on how institutions affect small and medium enterprises (SMEs) internationalisation process in developing countries. Drawing on institutional theory, this chapter reviews the variety of institutions (internal and external barriers) and how it affects SMEs’ internationalisation process in the developing world. First, it explores the stages of internationalisation, modes of entry and benefits of internationalisation. Second, it explains the Cultural, Administrative, Geographic and Economic (CAGE framework) distances and theories of internationalisation. Third, it examines the evidence on the role of government in promoting SMEs and drivers of internationalisation. These have significant practical and policy implications, especially for policymakers that are concerned with business reforms and ease of doing business.

Keywords:SMEs, Internationalisation, CAGE, Institutional Theory, Ease of Doing Business, Developing Countries
Subjects:N Business and Administrative studies > N220 Institutional Management
N Business and Administrative studies > N120 International Business studies
Divisions:Lincoln International Business School
ID Code:37696
Deposited On:08 Oct 2019 10:00

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