Abstract
The nature of foreign markets, as well as the issues Small and Medium Enterprises (SMEs) face in terms of competitiveness, necessitates this study. The paper aims to analyze the challenges ofexport-oriented Indian SMEs for International Competitiveness. The paper explores challenges and cause-and-effect relations between them using the decision-making trial and evaluation laboratory technique (DEMATEL), and this study will assist in gaining international competitiveness for SMEs. A detailed literature review was conducted to identify various challenges to international competitiveness. Questionnaires were formed for data collection and the DEMATEL method has been employed for developing causal relationships. The findings show that “Less International Experience” and “Insufficient Information” are critical challenges for SMEs in gaining international competitiveness. Challenges were prioritized, along with the cause-and-effect correlations among them, so that decision-makers could focus on overcoming them to gain international Competitiveness. The goal of the study is to help executives recognize the challenges to international competitiveness in their respective businesses. The novelty of this paper lies in its empirical studies in the field of Indian SMEs to employ the DEMATEL method framework as a foundation for finding cause-effect connections across International Competitiveness challenges.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Data availability
Not applicable.
Code availability
Not applicable.
References
Acs, Z. J., & Terjesen, S. (2013). Born local: Toward a theory of new venture’s choice of internationalization. Small Business Economics, 41(3), 521–535. https://doi.org/10.1007/s11187-012-9446-8
Anca, H. D. B. (2012). Literature review of the evolution of competitiveness concept. . Annals of the University of Oradea, Economic Science …, Query date: 2019–02–23.
Arteaga-Ortiz, J., & Fernández-Ortiz, R. (2010). Why don’t we use the same export barrier measurement scale? An Empirical Analysis in Small and Medium-Sized Enterprises., 48(3), 395–420.
Bagchi-sen, S. (2010). The small and medium sized exporters ’ problems : An empirical analysis of canadian manufacturers the small and medium sized exporters ’ problems : An empirical analysis of canadian manufacturers. Regional Studies, 33(3), 231–245. https://doi.org/10.1080/00343409950082427
Bai, C., & Satir, A. (2020). Barriers for green supplier development programs in manufacturing industry. Resources, Conservation and Recycling, 158(February), 104756. https://doi.org/10.1016/j.resconrec.2020.104756
Bellone, F., Musso, P., Nesta, L., & Schiavo, S. (2010). Financial Constraints and Firm Export Behaviour. The World Economy, 33(3), 347–373. https://doi.org/10.1111/j.1467-9701.2010.01259.x
Bhawsar, P., & Chattopadhyay, U. (2015). Competitiveness: Review, reflections and directions. Global Business Review, 16(4), 665–679. https://doi.org/10.1177/0972150915581115
Bodlaj, M., Kadic-Maglajlic, S., & Vida, I. (2020). Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs’ export growth. Journal of Business Research, 108(November 2017), 466–475. https://doi.org/10.1016/j.jbusres.2018.10.043
Cadogan, J. W. (2002). Export market-oriented activities: Their antecedents and performance consequences. Journal of International Business Studies, 33(3), 615–626.
Caputo, A., Ayoko, O. B., Amoo, N., & Menke, C. (2019). The relationship between cultural values, cultural intelligence and negotiation styles. Journal of Business Research, 99(February), 23–36. https://doi.org/10.1016/j.jbusres.2019.02.011
Cardoza, G., & Fornes, G. (2011). The internationalisation of SMEs from China: The case of Ningxia Hui Autonomous Region. Asia Pacific Journal of Management, 28(4), 737–759. https://doi.org/10.1007/s10490-009-9174-z
Cardoza, G., Fornes, G., Farber, V., Gonzalez Duarte, R., & Ruiz Gutierrez, J. (2016). Barriers and public policies affecting the international expansion of Latin American SMEs: Evidence from Brazil, Colombia, and Peru. Journal of Business Research, 69(6), 2030–2039. https://doi.org/10.1016/j.jbusres.2015.10.148
Chang, C. W., Wu, C. R., Lin, C. T., & Chen, H. C. (2007). An application of AHP and sensitivity analysis for selecting the best slicing machine. Computers and Industrial Engineering, 52(2), 296–307. https://doi.org/10.1016/j.cie.2006.11.006
Chetty, S., Karami, M., & Martín, O. M. (2018). Opportunity Discovery and Creation as a Duality: Evidence from Small Firms’ Foreign Market Entries. Journal of International Marketing, 26(3), 70–93. https://doi.org/10.1509/jim.17.0005
Child, J., Narooz, R., Hsieh, L., Elbanna, S., Karmowska, J., Marinova, S., Puthusserry, P., Tsai, T., & Zhang, Y. (2022). External resource provision and the international performance of SMEs—a contextual analysis. Journal of International Management, 28(3), 100924. https://doi.org/10.1016/j.intman.2021.100924
Cho, Y. J., Leem, C. S., & Shin, K. T. (2008). The relationships among manufacturing innovation , competitiveness , and business performance in the manufacturing industries of Korea. 840–850. https://doi.org/10.1007/s00170-007-1107-8
D’Cruz, J., & Rugman, A. (1992). New Compacts for Canadian Competitiveness (pp. 14–61). https://books.google.ae/books?isbn=1568066902
Dabić, M., Maley, J., Dana, L. P., Novak, I., Pellegrini, M. M., & Caputo, A. (2020). Pathways of SME internationalization: A bibliometric and systematic review. Small Business Economics, 55(3), 705–725. https://doi.org/10.1007/s11187-019-00181-6
Dalkey, N., & Helmer, O. (1963). An experimental apllication of Deplhi method to use of experts. In Management Science (Vol. 9, pp. 458–467).
Etemad, H., & Wright, R. W. (2003). Internationalization of SMEs: toward a new paradigm. Small Business Economics, 20(1), 1–4. https://doi.org/10.1023/A:1020274419262
Fagerberg, J. (1988). International competitiveness. The Economic Journal, 98(391), 355–374. https://doi.org/10.2307/2233372
Fayolle, A., & Liñán, F. (2014). The future of research on entrepreneurial intentions. Journal of Business Research, 67(5), 663–666. https://doi.org/10.1016/j.jbusres.2013.11.024
Ferreira, P., Lima, D. A., Crema, M., & Verbano, C. (2020). Risk management in SMEs: A systematic literature review and future directions. European Management Journal, 38(1), 78–94. https://doi.org/10.1016/j.emj.2019.06.005
Gabriel, J. C. P., Chin, C. W. W., & Cepeda-carrio, G. (2014). Effect of ITC on the international competitiveness of firms. Management Decision, 50(6), 1045–1061. https://doi.org/10.1108/00251741211238328
Gorostidi-Martinez, H., & Zhao, X. (2017). Strategies to avoid liability of foreignness when entering a new market. Journal of Advances in Management Research, 14(1), 46–68. https://doi.org/10.1108/JAMR-09-2016-0067
Gregorio, D. Di, Musteen, M., & Thomas, D. E. (2009). Offshore outsourcing as a source of international competitiveness for SMEs. 969–988. https://doi.org/10.1057/jibs.2008.90
Gruenhagen, J. H., Sawang, S., Gordon, S. R., & Davidsson, P. (2018). International experience, growth aspirations, and the internationalisation of new ventures. Journal of International Entrepreneurship, 16(3), 421–440. https://doi.org/10.1007/s10843-018-0232-9
Hajela, A. and Akbar, M. (2013). Internationalisation of small and medium software firms from India Ashish Hajela * M . Akbar. Management and Organization Review, 6(Iiml), 88–101.
Hamel, G., & Prahalad, C. K. (1989). Strategic intent. Harvard Business Review, 3, 63–76.
Hollender, L., Zapkau, F. B., & Schwens, C. (2017). SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation. International Business Review, 26(2), 250–263. https://doi.org/10.1016/j.ibusrev.2016.07.003
Kahiya, E. T. (2018). Five decades of research on export barriers : Review and future directions. International Business Review, 27(6), 1172–1188. https://doi.org/10.1016/j.ibusrev.2018.04.008
Kalinic, I., & Brouthers, K. D. (2022). Entrepreneurial orientation, export channel selection, and export performance of SMEs. International Business Review, 31(1), 101901. https://doi.org/10.1016/j.ibusrev.2021.101901
Kaynak, E., Ghauri, P. N., & Olofsson-Bredenlöw, T. (1987). Export Behavior of Small Swedish Firms. Journal of Small Business Management, 25(2), 6–32.
Krugman, P. (1994). Competitiveness: a dangerous obsession. Foreign Aff., 73(28).
Kulkarni, S. D., Vivek, S. G. D., & Anabela, V. K. (2021). Unifying Efforts to Rebound Operational Excellence and Export Competitiveness. International Journal of Global Business and Competitiveness, 16(s1), 1–15. https://doi.org/10.1007/s42943-021-00043-7
Kumar, A., Zavadskas, E. K., Mangla, S. K., Agrawal, V., Sharma, K., & Gupta, D. (2019). When risks need attention: Adoption of green supply chain initiatives in the pharmaceutical industry. International Journal of Production Research, 57(11), 3554–3576. https://doi.org/10.1080/00207543.2018.1543969
Li, L., Li, D., Goerzen, A., & Shi, W. (Stone). (2018). What and how do SMEs gain by going international? A longitudinal investigation of financial and intellectual resource growth. Journal of World Business, 53(6), 817–834. https://doi.org/10.1016/j.jwb.2018.07.001
Lin, C. J., & Wu, W. W. (2008). A causal analytical method for group decision-making under fuzzy environment. Expert Systems with Applications, 34(1), 205–213. https://doi.org/10.1016/j.eswa.2006.08.012
Liñán, F., & Fayolle, A. (2015). A systematic literature review on entrepreneurial intentions: Citation, thematic analyses, and research agenda. International Entrepreneurship and Management Journal, 11(4), 907–933. https://doi.org/10.1007/s11365-015-0356-5
Lu, J. W., & Beamish, P. W. (2001). THE INTERNATIONALIZATION AND PERFORMANCE OF SMEs. 586, 565–586. https://doi.org/10.1002/smj.184
MacKinnon, D., Chapman, K., & Cumbers, A. (2004). Networking, trust ’and embeddedness amongst SMEs in the Aberdeen oil complex. Entrepreneurship and Regional Development, 16(2), 87–106. https://doi.org/10.1080/08985620410001677826
Maleki, K. (2009). Méthodes quantitatives de consultation d’experts: Delphi, Delphi public. Editions Publibook.
Momaya, K. (1998). Evaluating international competitiveness at the industry level. Vikalpa, 23(2), 39–46. https://doi.org/10.1177/0256090919980206
Momaya, K. (2001). International competitiveness: Evaluation and enhancement. Hindustan Publishing Corporation.
Momaya, K. S. (2016). City clusters and break-out in corporate competitiveness Patterns and perspectives focusing on. Competitiveness Review, 26(4), 415–434. https://doi.org/10.1108/CR-08-2014-0021
Momaya, K. S. (2019). The past and the future of competitiveness research: A Review in an emerging context of innovation and EMNEs. International Journal of Global Business and Competitiveness, 14(1), 1–10. https://doi.org/10.1007/s42943-019-00002-3
Morck, R., Shaver, J. M., & Yeung, B. (1997). The internationalization of small and medium-sized enterprises : a policy perspective. Small Business Economics, 9(1), 7–20.
Musteen, M., Francis, J., & Datta, D. K. (2010). The influence of international networks on internationalization speed and performance: A study of Czech SMEs. Journal of World Business, 45(3), 197–205. https://doi.org/10.1016/j.jwb.2009.12.003
Olczyk, M. (2016). A systematic retrieval of international competitiveness literature: A bibliometric study. Eurasian Economic Review, 6(3), 429–457. https://doi.org/10.1007/s40822-016-0054-9
Paul, J. (2020). SCOPE framework for SMEs: A new theoretical lens for success and internationalization. European Management Journal, 38(2), 219–230. https://doi.org/10.1016/j.emj.2020.02.001
Paul, J., & Gupta, P. (2014). Process and intensity of internationalization of IT firms—Evidence from India. International Business Review, 23(3), 594–603. https://doi.org/10.1016/j.ibusrev.2013.10.002
S.X. Zeng X.M. Xie C.M. Tam T.W. Wan. (2008). Competitive priorities of manufacturing firms for internationalization : an empirical. Measuring Business Excellence, Vol. 12(Iss 3), 44–55. https://doi.org/10.1108/13683040810900395
Sethi, D., & Judge, W. (2009). Reappraising liabilities of foreignness within an integrated perspective of the costs and benefits of doing business abroad. International Business Review, 18(4), 404–416. https://doi.org/10.1016/j.ibusrev.2009.02.006
Sharma, M., Joshi, S., Kannan, D., Govindan, K., Singh, R., & Purohit, H. C. (2020). Internet of Things (IoT) adoption barriers of smart cities’ waste management: An Indian context. Journal of Cleaner Production, 270, 122047. https://doi.org/10.1016/j.jclepro.2020.122047
Sharma, V., Gidwani, B. D., Sharma, V., & Meena, M. L. (2019). Implementation model for cellular manufacturing system using AHP and ANP approach. Benchmarking, 26(5), 1605–1630. https://doi.org/10.1108/BIJ-08-2018-0253
Singh, R. K., Garg, S. K., & Deshmukh, S. G. (2008). Strategy development by SMEs for competitiveness: A review. Benchmarking: An International Journal, 15(5), 525–547. https://doi.org/10.1108/14635770810903132
Song, W., Zhu, Y., & Zhao, Q. (2020). Analyzing barriers for adopting sustainable online consumption: A rough hierarchical DEMATEL method. Computers and Industrial Engineering, 140(37), 106279. https://doi.org/10.1016/j.cie.2020.106279
Sui, S., & Baum, M. (2014). Internationalization strategy, firm resources and the survival of SMEs in the export market. Journal of International Business Studies, 45(7), 821–841. https://doi.org/10.1057/jibs.2014.11
Wu, F., Sinkovics, R. R., & Roath, A. S. (2007). Overcoming export manufacturers ’ dilemma in international expansion. Journal of International Business Studies, 38(2), 283–302. https://doi.org/10.1057/palgrave.jibs.8400263
Yadegaridehkordi, E., Hourmand, M., Nilashi, M., Shuib, L., Ahani, A., & Ibrahim, O. (2018). Influence of big data adoption on manufacturing companies’ performance: An integrated DEMATEL-ANFIS approach. Technological Forecasting and Social Change, 137(March), 199–210. https://doi.org/10.1016/j.techfore.2018.07.043
Zucchella, A., & Servais, P. (2012). The internationalisation process of small- and medium-sized firms and the liability of complexity. International Journal of Entrepreneurship and Small Business, 15(2), 191–212. https://doi.org/10.1504/IJESB.2012.045204
Acknowledgements
We are grateful to the anonymous reviewers and JGBC Editor-in-Chief Prof Kirankumar S. Momaya for their constructive comments and feedback.
Funding
Not applicable.
Author information
Authors and Affiliations
Contributions
NG: ideas, conceptualization, writing—original draft preparation, methodology, data collection, formal analysis, revision. PA: ideas, conceptualization, commentary, and revision. VK: critical review, investigation, commentary, and revision.
Corresponding author
Ethics declarations
Conflict of interest
None of the authors have any conflict of interest.
Ethics Approval
This research does not involve any ethical issues of humans. Additionally, all the authors have approved the contents of this paper.
Consent to Participate
All authors state that this paper is an original work and has been approved by all co-authors.
Consent for Publication
The authors confirm the paper described has not been published before; that it is not under consideration for publication elsewhere.
Supplementary Information
Below is the link to the electronic supplementary material.
Rights and permissions
Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Ghag, N., Acharya, P. & Khanapuri, V. Prioritizing the Challenges Faced in Achieving International Competitiveness by Export-Oriented Indian SMEs: a DEMATEL Approach. JGBC 17 (Suppl 1), 12–24 (2022). https://doi.org/10.1007/s42943-022-00061-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s42943-022-00061-z