Main Article Content
Small and Medium sized Enterprises (SMEs) plays a major role in the Gross Domestic Product (GDP), providing job opportunities, reducing poverty etc. Even though they have contributing in large to the economy still they are facing number of challenges when internationalizing their businesses. Since this study focused on the factors influence on SMEs internationalizing their businesses. Based on review literature and discussion of expert in the field, four critical factors were identified namely competition, technology, legal requirements and support from the government. Researches received fifty-five questionnaires from the manufacturing Small and Medium sized Enterprise (SME) owners in North Western Province. Fifty completed questionnaires used to measure the effect of four issues on export performance in Sri Lanka. Descriptive statistics, correlation analysis and regression analysis used to analysis data using SPSS.
The study reveals that out of four critical factors competition, support from the government showed a positive relationship with performance of internationalized Small and Medium sized Enterprises (SMEs) while technology showed a negative relationship and legal requirements showed no relationship. Among these four critical factors most significant factor was competition. Second most significant factor was support from government and technology; legal requirements were at last. This study will give a big support for Small and Medium sized Enterprise (SME) owners, policy makers, researchers and etc. Policy makers and government should encourage internationalization of SMEs to achieve higher performance and give big contribution to the country. Further research needs to conduct on SME internationalization and their issues with massive sample covering both manufacturing and service industries.
World Bank. Small and Medium Enterprises (SMEs) Finance; 2015. Available:http://www.worldbank.org/en/topic/financialsector/brief/smes
Small and medium sized enterprises and decent and productive employment creation(No.4).(2015).International labour office,Geneva
Ministry of Development Strategies and International Trade. (2018).Annual performance report,2018
Gamage AS. Small and medium enterprise development in Sri Lanka: A review; 2003. Available:http://188.8.131.52/SEBM/ronso/no34/aruna.pdf.
Subhan, Q. A., Mehmood, M. R., & Sattar, A. (2013). Innovation in Small and Medium Enterprises (SME’s) and its impact on Economic Development in Pakistan. Paper presented at the Paper was presented in 6th International Business and Social Sciences Research Conference.
Paunovi Z, Prebe D. Internationalization of small and medium-sized enterprises. Trziste. 2010;22.
Kelegama S. Export sector in Sri Lanka: Issues and challenges. Proceedings of 18th AGM of National Chamber of Exporters. Colombo; 2013.
Mudalige D. Export behavior of small and medium scale enterprises; 2017.
Oviatt BM, McDougall PP. International entrepreneurship: The intersection of two research paths. Academy of Management Journal. 2000;43(5):902-906.
Miesenbock K. Small business and exporting: a literature review. Journal of International Business Studies. 1988; 06(2):43-61.
Lee H, Kelley D, Lee J, Lee S. SME survival: the impact of internationalization, technology resources, and alliances. Journal of Small Business Management. 2012;50(1):1–19.
Kalinic I, Forza C. International Business Review. 2012;21(4):694-707,14.
Yoshino N, Taghizadeh-Hesary F. An analysis of challenges faced by Japan’s economy and abenomics. Japanese Political Economy. 2014a;40(3–4):37–62. DOI: 10.1080/2329194X.2014.998591
Jalali SH. Export barriers and export performance; Empirical evidence from the commercial relationship between Greece and Iran, South-Eastern Europe Journal of Economics. 2012;1:53-66.
Ruzzier M, Hisrich RD, Antoncic B. SME internationalization research: Past, present, and future. Journal of Small Business and Enterprise Development. 2006;13(4):476-497.
Rajapaaksha LK. Issues in internationalization and their impact on performance of internationalized SMEs in Sri Lanka. scholar bank, university of Sri Jayewardenapura; 2015.
Singh G, Pathak RD, Naz R. Issues faced by SMEs in the internationalization process: Results from Fiji and Samoa. International Journal of Emerging Markets, Emerald Group Publishing Limited. 2010; 05(2):153-1 82.
Johanson J, Vahine JE. The internationalization process of the firm: A modelofknowledgedevelopmentandincreasingforeignmarketcommitments. Journal of International Business Studies. 1977; 08(1):23-36.
OECD (Organization for Economic Cooperation and Development) Better life initiative: Measuring well-being and progress; 2015.
accessed 21 April2015. Available:http://www.oecd.org/statistics/better- life-initiative.htm
Pleitner JH. Globalization and entrepreneurship: Entrepreneurs facing the ultimate challenge. Journal of Enterprising Culture. 2002;05(1):27-55.
Welch CL, Welch LS. Broadening the concept of international entrepreneurship: Internationalisation, networks and politics. J Int Entrep. 2004;2(3):217-237.
Lu JW, Beamish PW. The internationalization and performance of SMEs. Strategic Management Journal. 2001;22(6-7):565– 586. DOI: 10.1002/smj.184
Chen, H., and Huang, Y. (2004) The establishment of global marketing strategic alliances by small and medium enterprises. Journal of Small Business Economics, Vol. 22. pp. 365-377.
Malekzadeh AR, Nahavandi A. Small business exporting: Misconceptions are abundant. American Journal of Small Business. 1985;09(4):7-14.
Karagozoglu N, Lindell M. Internationalization of small and medium sized technology-based firms: An exploratory study. Journal of Small Business Management. 1998;36:44-59.
Hall C. Impediments to international SME activity: Evidence and a proposed framework for monitoring. Discussion paper, APEC SMEWG, Malaysia; 2003.
Szabo A. Internationalization of SMEs: The LTNECE approach; 2002. Available:www.uncec.org/indust/sme/jnternat.htm
Bilkey W. An attempted integration of the litterateur on the export behavior of firms. Journal of International Business Studies. 1978;09(1):33-46.
Siringoringo H, Prihandoko Tintri D, Kowanda A. Problems faced by small and medium business in exporting products. Delhi Business Review. 2009;10(2):49-56.
Deshpande P. Doing business in India. Global Technology Forum; 2006. Available:http://globaltechforum.eiu.com/nd .asp?layout=newdebi & countryi dIN&coun try=india.
Todd PR, Javalgi RG. Internationalization of SMEs in India: Fostering entrepreneurship by leveraging information technology. International Journal of Emerging Markets, Emerald Group Publishing Limited. 2007;02(2):166-180.
Porter ME. Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press; 1980.
Thomas H. Theories of the firm: Implications for strategy research. Journal of Management Studies. 1994;31:165-191.
Leonidou LC. An analysis of the barrieors hindering small business export development. Journal of Small Business Management. 2004;42(3):279-302.
Executive insight: evaluating the market size for service franchising in emerging markets", International Journal of Emerging Markets(2006), Vol. 1 No. 1, pp. 9-20. https://doi.org/10.1108/17468800610644979
European Commission. Small and medium enterprises and the European economy; 2010. Available:htlp://ec. europa. e u/enterprise/smes/index. eu. html
Katsikeas CS. The export development process: An integrative review of empirical models. Journal of International Business Studies. 1994;27:517-551.
Morawitz D. Why the emerors new clothes are not made in Colombia, World Bank, Washington, DC; 1981.
Naidu GM. 'Predictors of export strategy and performance of small and medium-sized firms. Journal of Business Research. 2005;31:107-115.
Reid 1. Constraints facing small western firms in transitional markets. Journal of European Business Review 2006;18(3): 187-213.
Kalantaridis, C. (2004) Understanding the Entrepreneur: an institutionalist perspective, Ashgate Publishing Ltd., England
Christensen CH, Da Rocha A, Boulton WR. An empirical investigation of the factors influencing exporting success of Brazilianfirms. Journal of International Business Studies. 1987;18(3),61-77.
Fairbairn IJ. Island entrepreneurs: Problems and performance in the Pacific, PIDP, East-West Centre, Honolulu; 1988.