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The Growth Challenge of Western SMES in Emerging Markets: An Exploratory Framework and Policy Implications

Author

Listed:
  • Mitja Ruzzier

    (University of Primorska, Slovenia)

  • Yusaf H. Akbar

    (Central European University, Hungary)

  • Guido Bortoluzzi

    (University of Trieste, Italy)

  • Andrea Tracogna

    (University of Trieste, Italy)

Abstract

In this paper, we explore the main inhibiting factors associated with the process of entry and escalation of SMES in international markets, with a focus on Emerging Markets. We identify and propose seven main categories of Institutional Voids and three main types of resources that may critically determine SMES’ performances on EMS, namely, internationalization knowledge, social capital resources and marketing capabilities. Institutional Voids and resources are brought together within a conceptual framework suggesting that resource-scarce SMES will hold back in their attempts to commit further to Emerging Markets and will be further dissuaded the higher the Institutional Voids in the market. The paper contributes to the policy literature on SME internationalization by focusing on two areas of public policy action that could have a clear and manifest impact on SMES conduct in Emerging Markets, the first related to the resources available to and exploitable by SMES and the latter associated with Institutional Voids.

Suggested Citation

  • Mitja Ruzzier & Yusaf H. Akbar & Guido Bortoluzzi & Andrea Tracogna, 2017. "The Growth Challenge of Western SMES in Emerging Markets: An Exploratory Framework and Policy Implications," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 15(3 (Fall)), pages 291-314.
    • Handle: RePEc:mgt:youmgt:v:15:y:2017:i:3:p:291-314
    DOI: 10.26493/1854-6935.15.291-314
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    More about this item

    Keywords

    SMES; emerging markets; institutional voids; resources;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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