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Networking and internationalization of SMEs in emerging economies

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Abstract

Networking has been established as an important source of small- to medium-sized enterprises (SMEs) business expansion in many developed economies. Often, it provides the necessary intelligence leading to internationalization. The question this study addresses is “What are the roles and sources of networking of SMEs internationalization in emerging economies?” This study responds to this query through a dyadic study involving expert-opinion survey of SME development professionals and case studies of SMEs internationalization. The convergent views identified three interconnected sources of networking for SMEs internationalization, which are government institutions, business associates, and personal relations. The results affirmed that accomplishment of internationalization requires cohesion among the myriads of networking sources and operating agencies. A systems approach towards supporting the creation and management of networking linkages for internationalization combines systems thinking perspective with institutional view. It emphasizes integration of coordination, facilitation, and monitoring functions. Thus, suggesting institutional support and systems thinking are important constructs in the theory of international entrepreneurship. Policy makers and entrepreneurs of SMEs gain actionable points to ensure effectiveness of institutional support mechanism and to enhance their business internationalization, respectively.

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Acknowledgment

The authors would like to express their appreciation to the three anonymous reviewers and the journal editor, Professor Hamid Etemad, for their comments on the early drafts of this paper.

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Authors and Affiliations

  1. Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600, Bangi, Selangor, Malaysia

    Zizah Che Senik

  2. Graduate School of Business, Curtin University, Bentley, Australia

    Brenda Scott-Ladd

  3. Murdoch Business School, Murdoch University, Perth, Australia

    Lanny Entrekin

  4. UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, 43600, Bangi, Selangor, Malaysia

    Khairul Akmaliah Adham

Authors
  1. Zizah Che Senik
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  2. Brenda Scott-Ladd
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  4. Khairul Akmaliah Adham
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Correspondence to Zizah Che Senik.

Appendix A

Appendix A

List of abbreviations

Abbreviations

Full text

APEX

Asia-Pacific Exhibitions

FAMA

Federal Agriculture Marketing Authority

IKMAS

Malaysia and International Research Institute

MARA

Majlis Amanah Rakyat (The Council of Trust for Indigenous Citizen)

MATRADE

Malaysia External Trade Development Corporation

MECD

Ministry of Entrepreneurships and Cooperation Development

MIDA

Malaysian Industrial Development Authority

MIDF

Malaysian Industrial Development Finance

MIEL

Malaysian Industrial Estate Limited

MITI

Ministry of International Trade and Industry

MNC

Multinational Corporations

NSDC

National SME Development Council

OIC

Organization of the Islamic Conference

SIRIM

Standards and Industrial Research Institute of Malaysia

SMEs

Small to Medium Sized Enterprises

SMIDEC

Small and Medium Industries Development Corporation

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Che Senik, Z., Scott-Ladd, B., Entrekin, L. et al. Networking and internationalization of SMEs in emerging economies. J Int Entrep 9, 259–281 (2011). https://doi.org/10.1007/s10843-011-0078-x

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