Internationalisation of SMEs: does entrepreneurial orientation matter?

A Triad of Uppsala Internationalization of Emerging Markets Firms and Challenges: A Systematic Review

The economic advancement of emerging markets such as China, Brazil, and India has been regarded as one of the benefits of a globalized world. This paper revisits and evaluates the Uppsala model to teases out the process, speed, determinants, and challenges of early internationalization approaches of firms in transition and emerging markets (TEMs). Applying Systematic Literature Review (SLR), this article collects, disintegrates, and categorizes previous studies, synthesizing the theoretical models to shed light on small and medium enterprises (SMEs) characteristics, behaviour, and motives to internationalise, as well as the approaches to internationalisation. This method identified 183 articles published between 2008–2018 from 84 international journals. A triad (a set of three related things) highlights the three main features of the Integrated Uppsala Model including the basic assumptions, influential factors, and competitive strategies of firms. The findings suggest that the institutional–legal environment constitutes key barriers that firms in TEMs must overcome to develop an early internationalization strategy. It appears that internationalization literature focusing on emerging markets is biased towards China. The review identifies a need for future studies to (i) focus on emerging markets firms in Africa and South America; and (ii), provide a cross-country analysis and evaluation of internationalization strategies of TEMs.

Entrepreneurial activity in the Albertine Graben region of Uganda: the role of infrastructure development and entrepreneurial orientation

Purpose

The purpose of this paper is twofold (1) to establish the relationship between infrastructure development and entrepreneurial orientation (EO) on the entrepreneurial activities in the Albertine Graben region of Uganda and (2) to establish whether entrepreneurial orientation mediates the relationship between infrastructure development and entrepreneurial activity.

Design/methodology/approach

Quantitative data were collected from a sample of 118 enterprises, mainly small businesses. The authors sent out 118 self-administered questionnaires of which 93 useable questionnaires were returned, giving a response rate of 79%. Quantitative data were processed and analyzed using SPSS version 21. Analyses such as correlation, hierarchical regression and mediation were carried out to understand (1) the relationship between the variables, (2) the prediction potential of the independent variables to entrepreneurial activity and (3) the mediation role of EO on the relationship between infrastructure activity and business performance.

Findings

The authors found out that infrastructure developments are a significant predictor of entrepreneurial activity (ß = 0.432**, p < 0.01), explaining 21.6% of entrepreneurial activity in the region. EO was found to have a significant positive relationship with entrepreneurial activity (r = 0.580**, p < 0.01). The results of a hierarchical regression indicate that both infrastructure development and EO explain 42% of the entrepreneurial activity in the Albertine region. Mediation analysis indicated that EO is a partial mediator in the relationship between infrastructure development and entrepreneurial activity.

Research limitations/implications

The results are based on self-report statistics. The model explains 42% of entrepreneurial activity thus there is need to examine the influence of other factors which contribute the 58% to entrepreneurial activity. The study was also limited to public infrastructure, with much attention on transportation (roads) and energy (electricity). Future studies can consider looking at private infrastructure as well.

Practical implications

Understanding the role of infrastructure development and EO helps government and other development partners to know the type, quantity and quality of the infrastructure required as well as how to grow the EO of entrepreneurs to boost entrepreneurial activity in the region.

Originality/value

This paper provides insights into our understanding of the relationship between infrastructure development, entrepreneurial orientation and entrepreneurial activity using evidence from Uganda’s oil rich region. The originality of this paper further lies in the discovery of the partial mediation of entrepreneurial orientation in the relationship between infrastructure development and entrepreneurial activity. This is the first time such a study is conducted in an African developing country such as Uganda whose oil exploration activities are still in their infancy.

The role of social capital in augmenting strategic renewal of SMEs: does entrepreneurial orientation and organizational flexibility really matter?

Purpose

The objective of this study is to evaluate the key issues that how social capital augments the initiation of strategic renewal through the mediating role of entrepreneurial orientation and the moderating role of organizational flexibility. In the context of Small and Medium Enterprises (SMEs) of developing economies, the study developed and tested the theoretical model of strategic renewal for analyzing its major outputs.

Design/methodology/approach

This study utilized cross-sectional design and employ quantitative approach. The data were collected from the owner, managers and executive directors of pharmaceutical SMEs of Pakistan. The study used statistical analysis of correlation and regression for the analysis of data.

Findings

The study discovered that entrepreneurial orientation mediates the positive relationship of social capital and strategic renewal. Moreover, high organizational flexibility strengthens the association between social capital and strategic renewal of SMEs.

Originality/value

This research contributes to the body of knowledge by providing empirical evidence that how to thrive the mechanism of strategic renewal. The study further provides understanding of the effects of organizational social capital, entrepreneurial orientation and organizational flexibility on strategic renewal.

Business networking and internationalization: testing the mediation role of organizational learning

Purpose

The purpose of this study was to establish the mediation role of organizational learning in the relationship between business networking and internationalization of manufacturing small and medium-sized enterprises (SMEs) using evidence from Uganda.

Design/methodology/approach

This study is cross sectional and correlational. Data were collected through a questionnaire survey of 96 manufacturing SMEs. Data were analyzed through correlation coefficients, hierarchical regression and mediation analysis using Statistical Package for the Social Sciences and MedGraph - Excel Version.

Findings

Findings indicate that organizational learning partially mediates the relationship between business networking and internationalization of SMEs. Results further reveal that business networking and organizational learning significantly predict internationalization of SMEs.

Originality/value

This study contributes to the already existing literature on internationalization of SMEs as it provides initial empirical evidence on the mediating role of organizational learning in the relationship between business networking and internationalization of SMEs using evidence from a developing country – Uganda.

The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia

The aim of the current study was to ascertain the influence of a management control systems (MCS) package on a firm’s sustainability with the help of mediating variables such as differentiation and cost leadership strategy in Malaysian small and medium enterprises (SMEs). Data were collected from managers working in Malaysian SMEs. A total of 384 questionnaires was finally used for analysis using SmartPLS 3.8.2. Area cluster sampling was used for data collection, and seven out of sixteen clusters were selected randomly. These included Selangor, Johor, Kuala Lumpur, Sabah, Penang, Sarawak, and Perak because these seven states cover 73.9% of total SMEs. Structural equation modeling (SEM) was used to test the hypotheses. Confirmatory factor analysis (CFA) was also used to examine the reliability and validity, and structural model assessment was used to test the relationship between variables. Findings revealed that an MCS package had a positive influence on a firm’s sustainability, cost leadership, and differentiation strategy. Moreover, cost leadership and differentiation strategy have a significant and positive influence on a firm’s sustainability. In addition, cost leadership strategies and differentiation strategies significantly mediate between the MCS package and a firm’s sustainability. This research assesses the influence of the MCS package through cost leadership and differentiation strategy on a firm’s sustainability of Malaysian SMEs. It helps top management to focus on the MCS package and business strategies in attaining a firm’s long-term sustainability. Finally, research recommendations discuss that the present study helps future researchers and academicians.