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CHALLENGES FACING UK SMEs IN INTERNATIONAL DEVELOPMENT

Author

Listed:
  • ANNE HAMPTON

    (Business School, University of Buckingham, Hunter Street, Buckingham, UK)

  • JAMES ROWELL

    (Business School, University of Buckingham, Hunter Street, Buckingham, UK)

Abstract

In the UK, Small to Medium Sized Enterprises (SMEs) are encouraged to develop overseas business for a variety of reasons, such as sourcing of products and components, seeking new markets and developing international partnerships. Although the UK government, industry leaders and professional bodies encourage international growth, SMEs themselves also recognise the need and benefits of trading in international markets. One of the major challenges facing SMEs, and particularly owner-managed business, is how to formulate their approach to international markets. This paper aims to establish key issues UK SMEs are facing in the process of trading internationally. The paper is based on qualitative research exploring the concept of ‘global mindsets’ and the extent to which this approach is applied in SMEs operating internationally. The research views the concept of a global mindset from a wide perspective and includes: awareness of global issues; knowledge about other countries and cultures; development of competencies and aptitudes needed for working in and operating a business in a global context; and SME responses to cultural perspectives (as managers, employees and customers). The level of awareness of needing deep local knowledge and cultural sensitivity in building good relationships with suppliers, distributors and customers is also discussed. The ‘soft skills’ that MNEs either recruit or develop amongst their international managers, are not readily available to SMEs. SMEs must therefore develop their own understanding of the skills required in order to build their organization’s capability. This research focuses on identifying the decisions and actions needed for SME international business development, including the resource implications and timescales needed to develop markets and build relationships.

Suggested Citation

  • Anne Hampton & James Rowell, 2009. "CHALLENGES FACING UK SMEs IN INTERNATIONAL DEVELOPMENT," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    • Handle: RePEc:bbn:journl:2009_4_1_hampton
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    File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/2009_4_1_Hampton.pdf
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    References listed on IDEAS

    as
    1. Mika Gabrielsson & V H Manek Kirpalani & Pavlos Dimitratos & Carl Arthur Solberg & Antonella Zucchella, 2008. "Conceptualizations to Advance Born Global Definition," Global Business Review, International Management Institute, vol. 9(1), pages 45-50, June.
    2. Gianni Lorenzoni & Andrea Lipparini, 1999. "The leveraging of interfirm relationships as a distinctive organizational capability: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 317-338, April.
    3. Majocchi Antonio & Zucchella Antonella, 2001. "Internationalization and Performance: findings from a set of Italian SMEs," Economics and Quantitative Methods qf0110, Department of Economics, University of Insubria.
    4. Stephen Roper, 1997. "Strategic initiatives and small business performance: an exploratory analysis of Irish companies," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 9(4), pages 353-364, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    SME; International Capabilities; Global Mindset; International Business;
    All these keywords.

    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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