THE INTERNATIONALISATION DECISION OF THE ENDOWED SME

To date the prevailing view on SME internationalisation assumes that SMEs operate under resource-constraint limitations. To some extent, the development of knowledge is hindered by this generally accepted assumption. This research aims to contribute to knowledge by offering an understanding of how resource-abundant rather than resource-constraint conditions affect Small- and Medium-sized Enterprises’ (SMEs) internationalisation decision. This is achieved by examining eight SMEs operating in a munificent business context, specifically, the State of Qatar, which is one of the richest if not the wealthiest country in the Arab Gulf region. More specifically, the case study research investigates how operating in resource-abundant conditions affects specific aspects of the internationalisation decision such as selection of market, entry modes and internationalisation approach. The findings come from a qualitative cross-sectional study. The data collection methods comprise 38 semi-structured interviews. Based on interpretivist epistemology, the research pays specific attention to how SMEs identify and define munificence in the context of their internationalisation and how munificence influences SMEs’ internationalisation decision. The present research extends the previous work on how resources influence SMEs’ internationalisation and on the role of context on SMEs’ internationalisation. It contributes to knowledge by providing a novel synthesis of munificence by confirming the financial-market related parameters of the construct and recognising the influence of the formal and informal dimensions of the home market institutional context in extending the financial-market dimension of munificence. Additionally, it advocates that there is an intangible dimension of munificence, which is co-created by the interrelationship dynamics between the formal and informal dimensions of the institutional context and the founder’s domestic social and symbolic capitals in the home country. The research illustrates how the different dimensions of munificence influence SMEs’ socially constructed realities in the context of their internationalisation. To this end, the present case study research establishes the significance of context on SMEs’ internationalisation decision and the findings highlight the instrumentality of munificence in enabling initial internationalisation yet limiting and constraining progressive internationalisation. It also establishes that resource-abundant conditions prompt the development of early internationals and ‘born regional’ SMEs that adopt low-commitment entry modes to regional markets with low psychic distance. Furthermore, the research establishes a link between the formal dimension of the institutional context and manufacturing SMEs’ deliberate accumulation of operational slack resources and highlights that SMEs internationalizing from munificent business environment structure resource portfolios which does not rely on deploying technological resources or innovative capabilities.

Grantor dc:publisher

Oxford Brookes University

Year dc:date

2019

Author dc:creator

• Younis, Heba

Contributors dc:contributor

• Karmowska, Joanna
• Angwin, Duncan
• Handley, Karen

Statement dc:rights

• All rights reserved

Language dc:language

en

DOI dc:identifier

https://doi.org/10.24384/8sqf-jq09

OAI identifier oai:identifier

tle:f7440232-557e-4a20-a8e5-0d10e11a1443:d6bd9758-527a-46cd-bfe2-c433766e8fca:1