5 research outputs found
The effect of SME internationalization motivators on initial and successive international market entry mode choice
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Small and medium-sized enterprises’ exporting: Home and host country motivators effect on first and successive export venture decisions
The aim of the paper is to investigate the internationalization (particularly exporting) of small and medium-sized enterprises (SMEs) taking a sample of United Kingdom (UK) SMEs for the use in economic policy, academia and management. It focuses on the critical first and less risky step towards internationalization and separates the motivators into home country and host country. The paper investigates 44 specific, high impact, pre-selected exporting motivators from the literature and tests their effect on the firm’s initial export decision and latest (or sequential) export decision. Results show that the first
exporting choice affects later exporting choices and both are mostly affected by home country-specific, internal, motivators as opposed to host country-specific reactive motivators. In addition regionalization shows an association as European Union membership of the UK showed a relationship to subsequent entry mode choice. The paper’s results are of use to policy-makers and management
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A validation of web-based surveys for exploratory research in the areas of business and entrepreneurship
In this study, we demonstrate that web-based surveys are suitable for data collection in academic Business-related research. Using one of our datasets from an online study on entrepreneurial orientation, we investigated the construct validity and reliability of the instrument used to collect the data. Our analysis supports that for 28 Likert-scaled questionnaire items, a sample size of 332 people was adequate to conduct principle component analysis (PCA) and load the items into five components that are supported by literature. Cronbach’s alpha was consistently high (α = 0.92), with no evidence that the reliability would increase if any of the survey items were dropped. We therefore conclude that for short web-based surveys ( 300 is suitable for exploratory factor analysis
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Motivators of SME initial export choice and the European Union regional effect in manufacturing
Purpose – A global reach in exporting has been linked to profitability. The purpose of this paper is to answer
the influence of EU regulations on exporting decisions of UK manufacturing small- and medium-sized firms
(SMEs) by investigating the home and host country-based motivators behind SMEs’ choice to export, and
export regionally, within the EU.
Design/methodology/approach – Contrasting the Uppsala and resource-based view perspectives (using a
sample of UK independent manufacturing SMEs and utilizing a survey, correlation analysis and factor
analysis), the paper finds and describes the effect of the most recurrent motivators from the literature on the
SMEs’ decision to export within the EU or not.
Findings – The paper finds that SMEs whose latest international market entry was not in the EU scored
significantly higher in the factor scorings for the motivators in the external dimension than participants whose
latest entry was in the EU. Several motivators show an association with the choice to export per se. The importance
of regionalization to export initiation (and EU membership) within the EU is emphasized in the results.
Research limitations/implications – The sample size is limited.
Practical implications – In the current climate, how can SMEs reduce market research costs for managers
by relying solely and proactively on home country and internal advantages and motivators and being more
aware of their surroundings? Managers and policymakers can direct their strategy, resources and policy more
efficiently according to motivators; internal home country motivators (e.g. strengths of prices of products)
direct the SME to overcome inter-regional liability of foreignness, while host country motivators (e.g. legal
restrictions in the host country) direct them to regional ventures.
Originality/value – The theoretical and empirical work on the topic, until recently, has been fragmented and
inconsistent focusing on specific motivators but not necessarily justifying the selection or origin of variables
even less on SMEs
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Entrepreneurial perceptions and bias of SME exporting opportunities for manufacturing exporters: a UK study
Purpose – Success in export ventures has been linked to managerial capabilities. The purpose of this paper
is to examine the influence of exporting motivators on managerial perceptions of UK manufacturing small
and medium-sized enterprises (SMEs) by investigating the links between export motivators and decision bias
(i.e. predictable behavior).
Design/methodology/approach – Based on the Uppsala and resource-based view perspectives (using a
sample of the UK’s independent manufacturing SMEs and utilizing a survey, correlation analysis, and factor
analysis), this study finds and describes the effect of the most recurrent motivators and clusters of motivators
from the literature on the SMEs’ decision to export by investigating the dimensions (research, external, reactive).
Findings – This study finds that export motivators can be separated into specific dimensions leading to
potential selection bias. In addition, the importance of size, knowledge of foreign markets, and unsolicited
orders show an association with the perceptions of motivator stimuli toward specific dimensions (research,
external, reactive).
Practical implications – Government policy and SME export strategy need to understand managerial
perceptions and bias better in order to allocate resources efficiently toward stimulating exporting.
Originality/value – The literature and empirical work on the topic have been fragmented and conflicting
focusing on specific motivators but not necessarily explaining the selection or origin of motivators even less
on SMEs. Dimensions have not been taken into account as clusters of motivators