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Market Orientation, Government Regulation, Competitive Advantage and Internationalization of SMEs: A Study in Malaysia

Author

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  • Akbar Afsharghasemi
  • Mohamed Zain
  • Murali Sambasivan
  • Serene Ng Siew Imm

Abstract

Small and medium-sized enterprises (SMEs) make remarkable contributions to the economic growth of developing countries. As a newly industrialized country, the Malaysian economy predominantly depends on the SME sector. However, this study seeks to redress this by reporting the key drivers influencing the internationalization process of SMEs such as market orientation, government regulation and competitive advantage on internationalization of manufacturing SMEs in Malaysia. To empirically test those factors, primary data was gathered using the survey questionnaire method. The survey instrument was distributed to all manufacturing SMEs involved in exporting which are located in the Klang Valley of Malaysia and totally 257 questionnaires were received (FMM, 2012). The findings indicate the significant role of market orientation, government regulation and competitive advantage in their process of internationalization. Furthermore, the study has added to body of knowledge by introducing competitive advantage as a mediating variable between market orientation and government regulation with internationalization of manufacturing SMEs in Malaysia. The results of this research could help practitioners and managers of SMEs in the manufacturing sector to be in a better position to improve their internationalization efforts.

Suggested Citation

  • Akbar Afsharghasemi & Mohamed Zain & Murali Sambasivan & Serene Ng Siew Imm, 2013. "Market Orientation, Government Regulation, Competitive Advantage and Internationalization of SMEs: A Study in Malaysia," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 2(2), pages 13-22, October.
    • Handle: RePEc:jfr:jbar11:v:2:y:2013:i:2:p:13-22
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    References listed on IDEAS

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    Cited by:

    1. Hezron Mogaka Osano, 2019. "Global expansion of SMEs: role of global market strategy for Kenyan SMEs," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-31, December.
    2. Ulziimaa Altnaa & Laszlo Vasa & Gyorgy Ivan Neszmelyi, 2021. "The Role of Network Ties on SMEs Internationalization Process in the Developing Countries/Emerging Markets: A Comparison between Mongolia, China, and Malaysia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 274-291.
    3. Nandang Karnowati & Erna Handayani, 2022. "Mediation role of business performance on entrepreneurship orientation and market orientation to create MSME competitiveness in pandemic times," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 138-147, September.
    4. Darshana Mudalige & Noor Azizi Ismail & Marlin Abdul Malek, 2016. "Exploratory Study on Relationship between Entrepreneur Characteristics and Dynamic Capabilities in Export SMES," Paradigm, , vol. 20(2), pages 113-130, December.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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