Institutional and Organizational Capabilities as drivers of Internationalisation: Evidence from an emerging economy SMEs

Rahman, Mahfuzur, Hack-polay, Dieu, Shafique, Sujana and Igwe, Paul (2022) Institutional and Organizational Capabilities as drivers of Internationalisation: Evidence from an emerging economy SMEs. International Journal of Entrepreneurship and Innovation . ISSN 1465-7503

Full content URL: https://doi.org/10.1177%2F14657503221106181

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Institutional and Organizational Capabilities as drivers of Internationalisation: Evidence from an emerging economy SMEs
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Abstract

Internationalisation, the notion of cross border business, has become one of the key strategies for growth for SMEs in developing countries in recent years. Although many SMEs have used internationalisation strategies, there remains a gap of understanding the relative importance of factors influencing SMEs internationalisation particularly from developing countries perspectives. Drawing on the Resource Based View of the firm (RBV) theory, this research develops and validate the dimensions and sub-dimensions of the drivers of internationalisation. The study further identifies the relative importance of these dimensions from a developing country context. The study used a questionnaire survey to collect primary data from 212 Bangladeshi SMEs based on area wise cluster sampling. This study used partial least square based structural model (PLS-SEM) to assess the key drivers for foreign market entry by developing country SMEs. The findings confirm that the drivers of internationalisation represent a hierarchical construct consisting of three primary and eight sub-dimensions. Furthermore, this study suggests that SME internationalisation in a developing country is contingent up two categories of capabilities: critical organisational capabilities or resources (linked to internal processes largely associated with human resources) and critical institutional capabilities (associated with state level provision and the cultural fabric).

Keywords:SMEs Internationalisation, Institutional Capabilities, Organisational Capabilities, Emerging markets, Bangladesh, Resource-Based View
Subjects:N Business and Administrative studies > N120 International Business studies
Divisions:Lincoln International Business School
ID Code:49533
Deposited On:07 Jun 2022 07:53

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