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Exploring management and entrepreneurial factors in the internationalisation of SMEs: evidence from the Bangladeshi apparel industry

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  • Mohammad Bakhtiar Rana
  • Olav Jull Sørensen

Abstract

The study aims to explore the internal management and entrepreneurial factors that affect the internationalisation process of ready-made-garment (RMG) SMEs in Bangladesh. The study collects information from 46 apparel SMEs located in Chittagong, Bangladesh, and is followed by a pilot survey. Results reveal that entrepreneurs' management capability, foreign language skill, and e-commerce orientation play an instrumental role in the internationalisation process. In addition to common institutional impediments, the study finds entrepreneurial and managerial capabilities that make a difference in the internationalisation of apparel SMEs. Since the nature of the apparel business is buyer driven, establishing and maintaining a 'network' and 'learning' are the most important aspects for internationalisation process, which are dependent on the entrepreneur's management capability, foreign language skill and the extent to which e-commerce is adopted in the firm. In studying these buyer-driven firms, i.e., RMGs, researchers not only should consider the traditional theories of internationalisation, but take into account the perspectives of both lead firms and supplier firms within the global value chain in which both interact and conduct their operations.

Suggested Citation

  • Mohammad Bakhtiar Rana & Olav Jull Sørensen, 2013. "Exploring management and entrepreneurial factors in the internationalisation of SMEs: evidence from the Bangladeshi apparel industry," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 19(4), pages 517-542.
    • Handle: RePEc:ids:ijesbu:v:19:y:2013:i:4:p:517-542
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    Citations

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    Cited by:

    1. Imranul Hoque & Mohammad B. Rana, 2020. "Buyer–supplier relationships from the perspective of working environment and organisational performance: review and research agenda," Management Review Quarterly, Springer, vol. 70(1), pages 1-50, February.
    2. Emran, Sheikh Jafar & Azad, Abul Kalam, 2017. "Too Small to Export: Firm Characteristics for Export Market Participation in Manufacturing Sector," MPRA Paper 93902, University Library of Munich, Germany, revised Apr 2018.
    3. Mahmudul Hasan Fouji & Imranul Hoque, 2021. "Supplier Internationalization Through Upgrading in Global Supply Chain: Evidence from the Garments Industry of Bangladesh," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 116-129, December.
    4. Farhad Uddin Ahmed & Louis Brennan, 2019. "The impact of Founder’s human capital on firms’ extent of early internationalisation: Evidence from a least-developed country," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 615-659, September.
    5. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.

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