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The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises

The main objective of the study is to understand the key internal determinants that could affect Malaysian SMEs’ competitive advantages in international markets. International Entrepreneurship studies suggest resources and capabilities drive SME internationalisation. Nevertheless, there is lack of r...

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Main Author: Lee, Yan Yin
Format: Final Year Project / Dissertation / Thesis
Published: 2020
Subjects:
HD28 Management. Industrial Management
Online Access:http://eprints.utar.edu.my/3728/1/Dissertation%2DFinal_Copy_10.pdf
http://eprints.utar.edu.my/3728/
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spelling my-utar-eprints.37282020-07-09T07:30:51Z The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises Lee, Yan Yin HD28 Management. Industrial Management The main objective of the study is to understand the key internal determinants that could affect Malaysian SMEs’ competitive advantages in international markets. International Entrepreneurship studies suggest resources and capabilities drive SME internationalisation. Nevertheless, there is lack of research evidence that gives insight about what resources and capabilities will lead to SMEs’ competitive advantages in international markets, especially in emerging countries like Malaysia. Apart from resources and capabilities, digitalisation and its interaction with competitive advantages in international markets have not been widely discussed. This study develops a research model for testing of the direct relationships of resources, capabilities, digitalisation on competitive advantages in international markets. The model also tests the indirect relationships of resources and digitalisation on competitive advantages through capabilities. Using MATRADE directory to target Malaysian exporting SME manufacturers, this study employs quota sampling method for distribution of v questionnaire. Based on 143 responses, partial least square structural equation modeling (PLS-SEM) was used for data analysis. The research findings reveal the distinctive role of resources and capabilities for different types of competitive advantages in international markets. Management international resources contribute to price advantage, international capabilities contribute to product and service advantages, while digitalisation has no direct effect to any of these competitive advantages. Nevertheless, these two constructs are important for SME internationalisation owing to their indirect effects on product and service advantages. The research is valuable for Malaysian SMEs that wish to internationalise or strengthen their competitiveness in international markets. The main practical implication is that by having an evidence-based understanding of the resources and capabilities that accelerate internationalisation and SMEs can conduct international business easier with reduction of time, money and risks. In conclusion, SMEs should develop the right sets of resources (management characteristics, international knowledge, network) and capabilities (marketing, innovation, learning capabilities) for gaining of competitive advantages in international markets. They may also enhance both resources and digitalisation in developing their international capabilities. 2020 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/3728/1/Dissertation%2DFinal_Copy_10.pdf Lee, Yan Yin (2020) The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises. Master dissertation/thesis, UTAR. http://eprints.utar.edu.my/3728/
institution Universiti Tunku Abdul Rahman
building UTAR Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tunku Abdul Rahman
content_source UTAR Institutional Repository
url_provider http://eprints.utar.edu.my
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Lee, Yan Yin
The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises
description The main objective of the study is to understand the key internal determinants that could affect Malaysian SMEs’ competitive advantages in international markets. International Entrepreneurship studies suggest resources and capabilities drive SME internationalisation. Nevertheless, there is lack of research evidence that gives insight about what resources and capabilities will lead to SMEs’ competitive advantages in international markets, especially in emerging countries like Malaysia. Apart from resources and capabilities, digitalisation and its interaction with competitive advantages in international markets have not been widely discussed. This study develops a research model for testing of the direct relationships of resources, capabilities, digitalisation on competitive advantages in international markets. The model also tests the indirect relationships of resources and digitalisation on competitive advantages through capabilities. Using MATRADE directory to target Malaysian exporting SME manufacturers, this study employs quota sampling method for distribution of v questionnaire. Based on 143 responses, partial least square structural equation modeling (PLS-SEM) was used for data analysis. The research findings reveal the distinctive role of resources and capabilities for different types of competitive advantages in international markets. Management international resources contribute to price advantage, international capabilities contribute to product and service advantages, while digitalisation has no direct effect to any of these competitive advantages. Nevertheless, these two constructs are important for SME internationalisation owing to their indirect effects on product and service advantages. The research is valuable for Malaysian SMEs that wish to internationalise or strengthen their competitiveness in international markets. The main practical implication is that by having an evidence-based understanding of the resources and capabilities that accelerate internationalisation and SMEs can conduct international business easier with reduction of time, money and risks. In conclusion, SMEs should develop the right sets of resources (management characteristics, international knowledge, network) and capabilities (marketing, innovation, learning capabilities) for gaining of competitive advantages in international markets. They may also enhance both resources and digitalisation in developing their international capabilities.
format Final Year Project / Dissertation / Thesis
author Lee, Yan Yin
author_facet Lee, Yan Yin
author_sort Lee, Yan Yin
title The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises
title_short The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises
title_full The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises
title_fullStr The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises
title_full_unstemmed The Role of Resources, Capabilities, and Digitalisation in Accelerating Internationalisation Process among Malaysian Small and Medium Enterprises
title_sort role of resources, capabilities, and digitalisation in accelerating internationalisation process among malaysian small and medium enterprises
publishDate 2020
url http://eprints.utar.edu.my/3728/1/Dissertation%2DFinal_Copy_10.pdf
http://eprints.utar.edu.my/3728/
_version_ 1674070449913331712
score 13.211869

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