IDEAS home Printed from https://ideas.repec.org/a/aem/journl/v10y2024i2p19-33.html
   My bibliography  Save this article

THE IMPORTANCE OF MULTINATIONAL COMPANIES (MNCs) AND SMALL AND MEDIUM SIZED ENTERPRISES' (SMEs') INTERNATIONALIZATION AS BUSINESS DRIVERS IN GLOBALIZATION AND SLOWBALIZATION: MUTUAL SURVIVAL AND GROWTH FOR BUSINESS VALUES

Author

Listed:
  • Anis BENABED

Abstract

This paper analyzes, describes the possibilities of business internationalization for both MNCs and SMEs to survive from competition, risks, restrictions and market tights for business values. The results and analysis demonstrated that Small and Medium Sized Enterprises (SMEs) may use some models to internationalize their product, operations or services. Multinational companies (MNCs) that wish to leave markets tights should take into consideration the importance of location for them once they are determined that they have a strong ownership to compete with in foreign markets. Multinational companies may purchase SMEs in their locations to transform them to some of their subsidiaries and help them survive or merge them to their system. SMEs may grow by going for the internationalization process choosing the chosen suitable entry mode such as FDI in case the three conditions of the OLI model Ownership, location and internalization by Dunning (1988) are fulfilled. SMEs may merge with MNCs in their locations but they should not compete with them to avoid major losses. SMEs may follow the UPPSALA model (1977) and its four stages for their internationalization process. Furthermore, SMEs may choose any of the four Bartlett and Ghoshal's strategies and typology for internationalization to become multinational, global, international or transnational if their internal and external budgets afford them for that. In conclusion, SMEs are considered driving companies for local economies in the EU and other economies with their rising numbers, they may remain domestic or grow through the process of export, import, outsourcing, licensing or franchising especially if they are innovative, they may follow the suitable internationalization entry mode in globalization. MNCs and SMEs are considered driving companies in globalization, according to this full paper and study both are drivers in globalization.

Suggested Citation

  • Anis BENABED, 2024. "THE IMPORTANCE OF MULTINATIONAL COMPANIES (MNCs) AND SMALL AND MEDIUM SIZED ENTERPRISES' (SMEs') INTERNATIONALIZATION AS BUSINESS DRIVERS IN GLOBALIZATION AND SLOWBALIZATION: MUTUAL SURVIVAL AND GROWT," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 10(2), pages 19-33, December.
    • Handle: RePEc:aem:journl:v:10:y:2024:i:2:p:19-33
    DOI: https://doi.org/10.53486/2537-6179.10-2.02
    as

    Download full text from publisher

    File URL: https://csei.ase.md/journal/files/issue_102/EEJRS_Issue10.2_page-19-33.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.53486/2537-6179.10-2.02?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sumantra Ghoshal, 1987. "Global strategy: An organizing framework," Strategic Management Journal, Wiley Blackwell, vol. 8(5), pages 425-440, September.
    2. Elena Golovko & Giovanni Valentini, 2011. "Exploring the complementarity between innovation and export for SMEs’ growth," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(3), pages 362-380, April.
    3. Oura, Mauricio Massao & Zilber, Silvia Novaes & Lopes, Evandro Luiz, 2016. "Innovation capacity, international experience and export performance of SMEs in Brazil," International Business Review, Elsevier, vol. 25(4), pages 921-932.
    4. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    5. Saridakis, George & Idris, Bochra & Hansen, Jared M. & Dana, Leo Paul, 2019. "SMEs' internationalisation: When does innovation matter?," Journal of Business Research, Elsevier, vol. 96(C), pages 250-263.
    6. Huong T.X. Nguyen & Viet Le, 2019. "Network ties and export propensity of Vietnamese small and medium enterprises," Asia Pacific Business Review, Taylor & Francis Journals, vol. 25(1), pages 100-122, January.
    7. Bruno Cassiman & Elena Golovko, 2011. "Innovation and internationalization through exports," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 56-75, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramdani, Boumediene & Belaid, Fateh & Goutte, Stephane, 2023. "SME internationalisation: Do the types of innovation matter?," International Review of Financial Analysis, Elsevier, vol. 88(C).
    2. Wu, Lichao & Wei, Yingqi & Wang, Chengang & McDonald, Frank & Han, Xia, 2022. "The importance of institutional and financial resources for export performance associated with technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    3. Bagheri, Mahshid & Mitchelmore, Siwan & Bamiatzi, Vassiliki & Nikolopoulos, Konstantinos, 2019. "Internationalization Orientation in SMEs: The Mediating Role of Technological Innovation," Journal of International Management, Elsevier, vol. 25(1), pages 121-139.
    4. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.
    5. Nishant Kathuria & Sumit K. Majumdar & Mike W. Peng, 2023. "Institutional Transitions, Research and Development, and Exports from India," Journal of Management Studies, Wiley Blackwell, vol. 60(6), pages 1521-1548, September.
    6. Dong, Guowei & Kokko, Ari & Zhou, Haoyong, 2022. "Innovation and export performance of emerging market enterprises: The roles of state and foreign ownership in China," International Business Review, Elsevier, vol. 31(6).
    7. Wu, Lichao & Wei, Yingqi & Wang, Chengang, 2021. "Disentangling the effects of business groups in the innovation-export relationship," Research Policy, Elsevier, vol. 50(1).
    8. Sandberg, Susanne & Sui, Sui & Baum, Matthias, 2019. "Effects of prior market experiences and firm-specific resources on developed economy SMEs' export exit from emerging markets: Complementary or compensatory?," Journal of Business Research, Elsevier, vol. 98(C), pages 489-502.
    9. Maria Luisa Mancusi & Andrea Vezzulli & Serena Frazzoni & Zeno Rotondi & Maurizio Sobrero, 2018. "Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing," Economica, London School of Economics and Political Science, vol. 85(337), pages 177-204, January.
    10. Cláudia P. Ribau & António C. Moreira & Mário Raposo, 2017. "SMEs innovation capabilities and export performance: an entrepreneurial orientation view," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(5), pages 920-934, September.
    11. Naoki Yasuda & Hitoshi Mitsuhashi, 2017. "Learning from Political Change and the Development of MNCs’ Political Capabilities: Evidence from the Global Mining Industry," Management International Review, Springer, vol. 57(5), pages 749-774, October.
    12. Grimpe, Christoph & Sofka, Wolfgang, 2016. "Complementarities in the search for innovation—Managing markets and relationships," Research Policy, Elsevier, vol. 45(10), pages 2036-2053.
    13. Costa, Cláudia & Lages, Luis Filipe & Hortinha, Paula, 2015. "The bright and dark side of CSR in export markets: Its impact on innovation and performance," International Business Review, Elsevier, vol. 24(5), pages 749-757.
    14. Stephanie E. Mansion & Andreas Bausch, 2020. "Intangible assets and SMEs’ export behavior: a meta-analytical perspective," Small Business Economics, Springer, vol. 55(3), pages 727-760, October.
    15. Dikova, Desislava & Jaklic, Andreja & Burger, Anze & Kuncic, Aljaz, 2014. "Export diversity or focus? What strategy is best for first-time internationalizing SMEs from an emerging market?," Working Papers/Institute for International Business 1, WU Vienna University of Economics and Business.
    16. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).
    17. David Córcoles & Carmen Díaz-Mora & Rosario Gandoy & Ángela Triguero, 2023. "The role of servitization in international entrepreneurship: An analysis for Spanish manufacturing firms," Journal of International Entrepreneurship, Springer, vol. 21(2), pages 214-244, June.
    18. Shleha, Waleed & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2023. "Entry mode diversity and closing commercial deals with international customers: The moderating role of advanced servitization," International Business Review, Elsevier, vol. 32(1).
    19. Luisa Gagliardi & Simona Iammarino, 2017. "Innovation in risky markets. Multinational and domestic firms in the UK regions," Working Papers 37, Birkbeck Centre for Innovation Management Research, revised Mar 2017.
    20. Hernández, Virginia & Nieto, María Jesús, 2016. "Inward–outward connections and their impact on firm growth," International Business Review, Elsevier, vol. 25(1), pages 296-306.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aem:journl:v:10:y:2024:i:2:p:19-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Rodica CRUDU (email available below). General contact details of provider: https://edirc.repec.org/data/acecsmd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.