Small and Medium Enterprise Internationalization: Literature Review

Added on - 16 Sep 2019

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Table of ContentsIntroduction...............................................................................................................................................1Literature Review......................................................................................................................................1Conclusion................................................................................................................................................11References................................................................................................................................................13
1IntroductionIn this paper literature review has been written. The literature review is on the strategies for theSmall and Medium Enterprise's internationalization of the local agricultural business in Nigeria.In a way to complete this literature review, the resources which have been analyzed and referredare all secondary in nature. Various previous research paper and report has been reviewed andanalyzed mainly to complete this literature review in an effective manner. AT the end of thisentire literature review the proper list of references has also been provided in APA style.Nigerian Agribusiness industryNigeria has the biggest economy in Africayet is a center salary, blendedeconomy anddeveloping business sector with growing money related administrations in the interchanges,innovation and diversion segments. It has subsistence farming segment which has not stayedaware of quick populace development. It is found from the history that Nigeria is well inagribusiness management. It is one of the countries which are engaged in the activity ofagribusiness. Responding to the needs of the hour it becomes prime importance for the NigerianSmall and medium agribusiness enterprises to go internationalization. It is often found that whileplanning to go internationalization the process may involve a lot of challenges, barriers, andopportunity. But Nigerian small and medium scale agri based enterprises should respond to thechallenges in an effective manner.Literature ReviewSME internationalization is creating at anaggravating pace, showing the overall significance ofSMEs to both neighborhood and overall markets. Starting late, convey has transformed into akey kind of SME internationalization. The cultivating portion has wound up being fundamental
2to the improvement of the Nigerian economy; to the extent innovative outcomes and occupationcreation, a considerable amount of these is a sound delegate for SMEs ability to convey theirthings.Due to theincrease in competitionas well as modernization of the technology, it becomes primeimportance for the small and medium enterprise to have internationalization. It is because it willlead them to perform effectively as well as efficiently in the stiff competitive market scenario.Internationalization will enable the small and medium enterprise to develop a global presenceand to have and earn handsome profit. It is fact that more than 69 percent of the population inNigeria is engaged in agriculture business and production (Peng, M. W. 2016). It is providingnear about 35 percent employment as per the 2010 statistics. Hence, it can be said that goinginternalization for the Nigerian agriculture business unit’s especially small and mediumenterprise isof prime importance. But at the same time selecting the best strategies and methodto adopt while going internationalization should also be considered and focused at large. It isbecause applying and adopting proper and internationalization process and strategies play a vitalrole in making the small and medium enterprise attainsuccess and objectivesin an effectivemanner. There are various strategies and method of going internationalization which a small andmedium enterprise can adopt and follow in internalization process.Nigerian SMEs have thought of new things and organizations, or better methodologies forpackaging the things with the objective that they are speaking to worldwide buyers. It takes anambitious concentrated firm in Nigeria to present a huge amount of money for conveyingwithout considering the highperil drew in with offering abroad. Many exchanging SMEs will goto the level of getting from the banks, using their homes as assurance security withoutconsidering the last result of losing their homes with the true objective to convey into an outside
3country. Ambitious centered SMEs in Nigeria can along these lines be recognized as firms with acapacity to proactively look for after overall businessopenings with thingsthat are innovativepaying little personality to the threats included. For a firm to have the ability to make anelucidation of benefits into purposes of intrigue and execution, the firm needsobvious capacities.It is basic to reliably make, join, and reconfigure firms' aptitudes and limits with the trueobjective to adjust to change in the business focus. It has been perceived by (Hermannsdottir et.al. 2007)that inventive presentationcan be critical in achieving firm execution in an outsidemarket if the internal and external parts are all around balanced.Theory of InternationalizationUppsala Theory of Internationalization- Internationalization viewpoint has been inspired by theScandinavian. The main highlight of this theory is that there are many reason which make thesmall and medium enterprise to go internalization such as if an enterprises want to increase salesand export and import, needs to establish sound relationship with the foreign countries, need tobuild global presence, want to exploit the available resources in an effective manner (Meyer, K.,and Peng, M. W. 2016).Location advantage theory- According to this theory small and medium enterprises try to accessthe advantage of the location. It is that if an enterprise observes that particular location is verymuch feasible for its growth as there is ample cheap and skilled labor are available then surelysmall and medium enterprises try to go internationalization. In order to gain the competitive, aswell as a strategic advantage, the small and medium agriculture enterprises, enter to foreignmarket through internalization.
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