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The internationalization theory and Malaysian small medium enterprises (SMEs)

Reduction in trade barriers and development in information and communication technology provide the opportunity for small and medium enterprises (SMEs) to expand their business into foreign market, even on the first day of its establishment.Such circumstances have lead into a debate among internati...

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Main Authors: Nik Abdullah, Nik Ab. Halim, Mohd Zain, Shahrul Nizam
Format: Article
Language:English
Published: International Association of Computer Science and Information Technology Press (IACSIT Press) 2011
Subjects:
HC Economic History and Conditions
Online Access:http://repo.uum.edu.my/7381/1/124.pdf
http://repo.uum.edu.my/7381/
http://doi.org/10.7763/IJTEF.2011.V2.124
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spelling my.uum.repo.73812016-04-18T00:49:19Z http://repo.uum.edu.my/7381/ The internationalization theory and Malaysian small medium enterprises (SMEs) Nik Abdullah, Nik Ab. Halim Mohd Zain, Shahrul Nizam HC Economic History and Conditions Reduction in trade barriers and development in information and communication technology provide the opportunity for small and medium enterprises (SMEs) to expand their business into foreign market, even on the first day of its establishment.Such circumstances have lead into a debate among internationalization researchers on which theory effectively explain the firm’s internationalization process and whether the older theories are not relevant anymore these days.Therefore, the objective of this paper is to look at the internationalization process of Malaysian SMEs and how it fits the internationalization theories. Discussions are based on the related theories of internationalization namely the Uppsala Model, Network Approach and International New Venture or Born global.This paper also presents a descriptive analysis on the level of internationalization among Malaysian SMEs, reason for internationalization, the mode of entry used, and the reason for non-internationalization among firms that have no international activities.Data were collected through self-administered questionnaire and a total of 250 responds were received.Findings indicate that all three theories are still applicable as not all SMEs that internationalized are born global in nature.Exporting was the most used mode of entry and increasing profit was the main reason for internationalization.Potential difficulties and uncertainties in making profit appear to be the major reason for non-internationalization.Discussions of the findings, significance of the study and direction for future research are then discussed. International Association of Computer Science and Information Technology Press (IACSIT Press) 2011-08 Article PeerReviewed application/pdf en http://repo.uum.edu.my/7381/1/124.pdf Nik Abdullah, Nik Ab. Halim and Mohd Zain, Shahrul Nizam (2011) The internationalization theory and Malaysian small medium enterprises (SMEs). International Journal of Trade, Economics and Finance, 2 (4). pp. 318-322. ISSN 2010-012X http://doi.org/10.7763/IJTEF.2011.V2.124
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Nik Abdullah, Nik Ab. Halim
Mohd Zain, Shahrul Nizam
The internationalization theory and Malaysian small medium enterprises (SMEs)
description Reduction in trade barriers and development in information and communication technology provide the opportunity for small and medium enterprises (SMEs) to expand their business into foreign market, even on the first day of its establishment.Such circumstances have lead into a debate among internationalization researchers on which theory effectively explain the firm’s internationalization process and whether the older theories are not relevant anymore these days.Therefore, the objective of this paper is to look at the internationalization process of Malaysian SMEs and how it fits the internationalization theories. Discussions are based on the related theories of internationalization namely the Uppsala Model, Network Approach and International New Venture or Born global.This paper also presents a descriptive analysis on the level of internationalization among Malaysian SMEs, reason for internationalization, the mode of entry used, and the reason for non-internationalization among firms that have no international activities.Data were collected through self-administered questionnaire and a total of 250 responds were received.Findings indicate that all three theories are still applicable as not all SMEs that internationalized are born global in nature.Exporting was the most used mode of entry and increasing profit was the main reason for internationalization.Potential difficulties and uncertainties in making profit appear to be the major reason for non-internationalization.Discussions of the findings, significance of the study and direction for future research are then discussed.
format Article
author Nik Abdullah, Nik Ab. Halim
Mohd Zain, Shahrul Nizam
author_facet Nik Abdullah, Nik Ab. Halim
Mohd Zain, Shahrul Nizam
author_sort Nik Abdullah, Nik Ab. Halim
title The internationalization theory and Malaysian small medium enterprises (SMEs)
title_short The internationalization theory and Malaysian small medium enterprises (SMEs)
title_full The internationalization theory and Malaysian small medium enterprises (SMEs)
title_fullStr The internationalization theory and Malaysian small medium enterprises (SMEs)
title_full_unstemmed The internationalization theory and Malaysian small medium enterprises (SMEs)
title_sort internationalization theory and malaysian small medium enterprises (smes)
publisher International Association of Computer Science and Information Technology Press (IACSIT Press)
publishDate 2011
url http://repo.uum.edu.my/7381/1/124.pdf
http://repo.uum.edu.my/7381/
http://doi.org/10.7763/IJTEF.2011.V2.124
_version_ 1644279524221779968
score 13.211869

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