Internationalisation of SMEs: does entrepreneurial orientation matter?

Mohammed Ngoma · Ernest Abaho · Sudi Nangoli · Christopher Kusemererwa

37 citations0/0 files storedWorld Journal of Entrepreneurship Management and Sustainable Development

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International Business and FDI Entrepreneurship Studies and Influences Migration, Ethnicity, and Economy

Abstract

Purpose The purpose of this paper is to investigate entrepreneurial orientation (EO) as a predictor of internationalisation of small- and medium-sized enterprises (SMEs). The key research question is “to what extent do the dimensions of EO (innovativeness, proactiveness and risk taking) predict internationalisation of SMEs?” Design/methodology/approach The study adopts a cross-sectional survey to collect data from 282 SMEs, with the use of a multi-dimensional self-administered questionnaire. All the measures in this study were adopted from existing instruments from previous studies and all showed a CVI above 0.8. Data were analysed quantitatively using descriptive statistics, correlations and hierarchical regression. The nature and strength of the relationships between the variables was tested using the zero-order bivariate correlation analysis. Findings The study establishes a significant relationship between the dimensions of EO and internationalisation of SMEs. Research limitations/implications This paper contributes to the corpus of literature on internationalisation of SMEs. Future research should consider the major constructs from a longitudinal point of view given that cross-sectional studies sometimes fail to examine the interaction effect of the variables. Practical implications The paper illustrates how EO dimensions can influence an entrepreneur’s decision to go international especially handling the process of internationalisation and its dynamics. Originality/value The paper provides contextual evidence from a developing country to the effect that as local investors get more inclined to EO, they in the process ease their way to joining the international business arena.

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References

2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.2004Firm resources and sustained competitive advantage 1970Determining Sample Size for Research Activities 1979Review of Psychometric theory (2nd ed.).1977The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 1989Strategic management of small firms in hostile and benign environments 1983The Correlates of Entrepreneurship in Three Types of Firms

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