Influential factors for SME internationalization: Evidence from Malaysia

Abstract

Factors influencing small-to-medium enterprises (SME) internationalization have been discussed in developed countries, yet developing counties are still struggling for empirical evidence. This article seeks to investigate the influential factors and identify the most influential aspects that drive Malaysian SMEs to internationalize. This exploratory study applied a Delphi technique through telephone interviews and e-mails. A panel of 32 experts including academicians, policymakers, government agencies, the Chamber of Commerce and research institute participated in this study. The Expert Panel was identified from the internet and through personal contacts. The experts were selected based on their positions, qualifications, affiliations, age and length of working experience. The findings found that the influential factors are firm characteristics, industry factor, external influence, and motivational aspects. Interestingly, this study revealed that the most influential factor is networking. Therefore, a Malaysian model of the factors influencing SME internationalization is derived. In particular, this study provides some insights into SMEs internationalization process and identifies suggestions for future research.

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