Acquiring International Knowledge and Experience: Internationalization of Small and Medium Enterprises (SMEs)

Authors

  • Shankar Chelliah School of Management Universiti Sains Malaysia, Malaysia
  • Mohamed Sulaiman Kulliyyah of Economic and Management Sciences International Islamic University Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijms2011.18.2.4

Keywords:

International knowledge and experience, index of internationalization, firm size

Abstract

Purpose â€“ This paper intends to understand the importance of acquiring international knowledge and experience and its relationship in the internationalization of Small and Medium Enterprises (SMEs) in the Malaysian context. Within this scope, this study sets out to further the discussion by comparing the global orientation of SMEs in Malaysia with their different levels of firm size. In a nutshell, the study further understands the moderating effect of firm size between the relationship of international knowledge and experience, and internationalization of SMEs.
 
Design/Methodology/Approach â€“ The study is based on literature review in the areas of SMEs internationalization, international knowledge and experience, and the firm size. The data was collected using a survey instrument among 300 internationalized enterprises located in the northern region of Malaysia.
 
Findings â€“ The results suggest that those firms that acquire international knowledge and experience have no significant relationship with firm internationalization. However, when firm size is used as a moderating factor, acquiring international knowledge and experience shows some importance for internationalization of firms. Interestingly, international knowledge and experience are important for relatively smaller firms. In other words, firm size is significant when relatively smaller SMEs acquire international knowledge and experience. It poses some implications for managers and policy makers.
 
Originality/Value â€“ This study explores the use of the index of internationalization to measure the internationalization of SMEs in Malaysia.
 
Keywords: International knowledge and experience, index of internationalization, firm size.

Downloads

Download data is not yet available.

References

Abdul Talib, A. N., & Md Salleh, M. F. (1997). Firm size and export attitudes of Malaysian exporters. Proceedings of 2nd Asian Academy of Management Conference: Towards Management Excellence in the 21st Century Asia (pp. 403–408). Langkawi, Malaysia: Universiti Sains Malaysia.

Abdullah, M. A. (1997). Perception and attitude of small and medium industries’ entrepreneurs towards training in Malaysia: A case of Penang. Proceedings of 2nd Asian Academy of Management Conference: Towards Management Excellence in the 21st Century Asia (pp. 238–243). Langkawi, Malaysia; Universiti Sains Malaysia.

Aldrich, H. E., & Auster, E. (1986). Even dwarfs started small: Liabilities of size and age and their strategic implications. Research in Organization Behavior, 8(1), 165–198.

Bell, J., McNaughton, R., Young, S., & Crick, D. (2003). Towards an integrative model of firm internationalization. Journal of International Entrepreneurship, 1(1), 339–62.

Bilkey, W. J., & Tesar, G. (1977). The export behavior of smaller-sized Wisconsin manufacturing firms. Journal of International Business Studies, 8(1), 93–98.

Bonaccorsi, A. (1992). On the relationship between firm size and export intensity. Journal of International Business, 23(Fall), 605–635.

Bradley, F. (1999). International marketing strategy (2nd ed.). England: Prentice Hall.

Burpitt, W. J., & Rondinelli, D. A. (2000). Small firms’ motivations for exporting: To earn and learn? Journal of Small Business Management, October, 1–14.

Calof, J. L. (1994). The relationship between firm size and export behavior revisited. Journal of International Business Studies, 25(2), 367–387.

Cavusgil, S. T. (1976). Organizational determinants of firms’ export behavior: An empirical analysis (Unpublished doctoral dissertation). University of Wisconsin.

Cavusgil, S. T. (1984). Differences between exporters based on their degree of internationalization. Journal of Business Research, 18(2), 195–208. IJMS 18 (2), 67–82 (2011) 81

Cavusgil, S. T., & Nevin, J. R. (1981). Internal determinants of export marketing behavior: An empirical investigation. Journal of Marketing Research, 23, 114–19.

Cavusgil, S.T., & Naor, J. (1987). Firm and management characteristics as discriminators of export marketing activity. Journal of Business Research, 15(3), 221–35. http://ijms.uum.edu.my

Coviello, N. (2006). The network dynamics of international new ventures. Journal of International Business Studies, 37(5), 713–31.

Eriksson, K., Johanson, J., Majkgard, A., & Sharma, D. D. (1997). Experiential knowledge and cost in the internationalization process. Journal of International Business Studies, Second quarter.

George, G., Wiklund, J., & Zahra, S. (2005). Ownership and the internationalization of small firms. Journal of Management, 31, 210–233.

Hashim, M. K. (2000b). SMEs in Malaysia: Past, present and future. Malaysian Management Review, June, 22–30.

Hester, S. (1985). Export trading companies: A marketing vehicle for small textile and apparel firms? Journal of Small Business Management, October, 20–27.

Holden, A. (1986). Small business can market in Europe: Results from a survey of U.S. exporters. Journal of Small Business Management, 24 (1), January, 22–29.

Lubit, R. (2001). Tacit knowledge and knowledge management: The keys to sustainable competitive advantage. Organizational Dynamics, 29(4), 164–178.

Melia, M. R., Boulard, M. M., & Peinado, L. S. (2007). Entrepreneurial orientation and international commitment. Journal of International Entrepreneurship, 5, 65–83.

Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537–53.

Reuber, A. R., & Fischer, E. (1997). The influence of the management team’s international experience on the internationalization behaviors of SMEs. Journal of International Business Studies, 28, 807–825.

Sullivan, D. (1994). Measuring the degree of internationalization of a firm. Journal of International Business Studies Second quarter, 325–342.

Tesar, G., & Moini, A. H. (1998). Longitudinal study of exporters and nonexporters: A focus on smaller manufacturing enterprises. International Business Review, 7(3), 291–313.

Zulkifli, N., & Jamaluddin, M. Y. (2000, Dec). Manufacturing and business strategy practices of the small and medium scale industries in Malaysia. Malaysian Management Review, 11–19. 82 IJMS 18 (2), 67–82 (2011)

Downloads

Published

29-12-2011

Research impact

Harvested 2026-09-08
0 citations recorded so far

Counts differ between services because each indexes a different body of literature. None of them is the whole picture.

Identifiers DOI 10.32890/ijms2011.18.2.4