Factors Impacting Small-Scale Business for Internationalisation

This dissertation explores the factors that contribute to the internationalization of small-scale businesses and finds out the most significant factors promoting the business going global. The research is significant because it enables small business enterprises to learn about the potential customers and the target customers respective to their organization. The research methodology includes positivism philosophy, deductive approach, exploratory design and interview. The sample size is 3 and both primary and secondary data collection processes are used followed by qualitative data analysis.

Running head: DISSERTATION
Factors Impacting Small-Scale Business for Internationalisation
A Dissertation
Submitted to
University Of Salford
in Fulfilment of the Requirement for the
Master Degree
In
Global Management
By
Abhaya Sharma
ID:00447833

1DISSERTATION
DECLARATION
I, Abhaya Sharma, hereby declare to the evaluation committee of this dissertation that my
dissertation is a report based on secondary information, and all the sources of information
used are duly acknowledged. This work has not been submitted to any other university for
any academic purpose.
Abhaya Sharma
Word count: 12823 words

2DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study.
I am indebted to my supervisor ……………………. whose guidance, advice and patience
have been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local
Education Authorities, for the time and help given throughout. Without their participation,
this research would not have been possible. In this context, I am also thankful to them, whose
research work helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or
completed! Your encouragement and support have never faltered; thank you.

3DISSERTATION
Abstract
The aim of the research is to explore the factors that contribute to the internationalization of
the small-scale businesses followed by finding out the most significant factors promoting the
business going global. The organizational mission and vision are developed in such a way
that the business organizations gain competitive advantage and sustain their position in the
market. This is because the customers have more options than before for fulfilling their needs
and desires. Considering the rapid growth, it can be said that in the international market,
small business enterprises can leave a mark and enlarge themselves significantly. The small
business enterprises are encountering challenges in terms of globalization efforts because
communication and keeping track of the foreign market fails to meet the standard.
Positivism philosophy, deductive approach, exploratory design and interview have been used.
The sample size selected is 3 by using non-probability sampling technique and 8 open-ended
questions has been developed for interviewing the samples through Skype. Both primary and
secondary data collection processes has been used followed by qualitative data analysis by
developing relevant themes that backed up with suitable graphs and tables.
From the data analysis, it can be said that small-scale businesses have risen in Australia over
the past years and is a major contributor for the Australian economy. The most preferred
small-scale businesses in Australia are catering business, cleaning, online tutoring, website
designing and many more. Hence, for further business expansion and ensuring growth, small-
scale businesses are going international. From the interview transcripts, it can be seen that the
operations managers have agreed that small-scale businesses have increased in Australia over
the years and that it have contributed largely towards the business, economic and
employment growth of the country. The limitation of the research is that confidential
information about the small businesses could not be considered because of privacy issues. In
the future, research can be conducted by focusing on particular small-scale business and how
they intend to go international. The implication of the research on theory, practice and policy
is that the current work can be used as a valid source of secondary resource for the future
researchers because the information and the findings presented in the study are authentic and
valid.
Keywords: Small-scale businesses, internationalization, Australian economy, market
saturation

4DISSERTATION
Table of Contents
Chapter 1: Introduction..............................................................................................................9
1.0 Overview..........................................................................................................................9
1.1 Problem statement..........................................................................................................10
1.2 Research aim..................................................................................................................11
1.3 Research objectives........................................................................................................11
1.4 Research questions.........................................................................................................11
1.5 Research significance.....................................................................................................12
1.6 Structure of the dissertation...........................................................................................13
1.7 Summary........................................................................................................................14
Chapter 2: Literature review....................................................................................................15
2.0 Overview........................................................................................................................15
2.1 Concept of internationalization......................................................................................15
2.2 Factors influencing small businesses to go international...............................................16
2.2.1 Owner’s international orientation...........................................................................16
2.2.2 Domestic market conditions....................................................................................17
2.2.3 Industry globalization..............................................................................................17
2.2.4 Established networks...............................................................................................18
2.2.5 Human capital.........................................................................................................19
2.2.6 Foreign ownership and internationalization............................................................20

5DISSERTATION
2.3 Benefits of internationalization for small businesses.....................................................20
2.4 Challenges of internationalization for small businesses................................................21
2.5 Strategies for overcoming internationalization challenges for small businesses...........22
2.6 Theoretical framework of internationalization...............................................................22
2.6.1 Mercantilist theory..................................................................................................23
2.6.2 Monopolistic advantage theory...............................................................................24
2.6.3 Uppsala model.........................................................................................................25
2.7 Strategies small businesses need to take for internationalization..................................26
2.7.1 Multi-domestic strategy..........................................................................................26
2.7.2 Global strategy........................................................................................................27
2.7.3 Transnational strategy.............................................................................................27
2.8 Conceptual framework...................................................................................................28
2.9 Summary........................................................................................................................28
Chapter 3: Research methodology...........................................................................................30
3.0 Overview........................................................................................................................30
3.1 Research philosophy......................................................................................................30
3.1.1 Justification for the selection of the chosen philosophy.........................................31
3.2 Research approach.........................................................................................................31
3.2.1 Justification for the selection of the chosen approach............................................31
3.3 Research design..............................................................................................................32
3.3.1 Justification for the selection of the chosen design.................................................32

6DISSERTATION
3.4 Data collection process..................................................................................................33
3.4.1 Justification for the selection of the chosen data collection process.......................33
3.5 Sampling technique and sampling size..........................................................................33
3.5.1 Justification for the selection of the chosen sampling technique............................34
3.6 Data analysis technique..................................................................................................34
3.6.1 Justification for the selection of the chosen data analysis technique......................35
3.7 Reliability and validity...................................................................................................35
3.8 Ethical considerations....................................................................................................35
3.9 Research limitations.......................................................................................................36
3.10 Summary......................................................................................................................36
Chapter 4: Data analysis...........................................................................................................37
4.0 Overview........................................................................................................................37
4.1 Findings and analysis.....................................................................................................37
4.2 Summary........................................................................................................................50
Chapter 5: Findings and interpretations...................................................................................52
5.0 Overview........................................................................................................................52
5.1 Discussions.....................................................................................................................52
5.2 Summary........................................................................................................................57
Chapter 6: Conclusion and recommendations..........................................................................58
6.0 Conclusion......................................................................................................................58
6.1 Linking with objectives..................................................................................................59

7DISSERTATION
6.2 Recommendations..........................................................................................................60
6.3 Implications of the research...........................................................................................62
6.4 Limitations and future direction of the study.................................................................62
References................................................................................................................................63
Appendices...............................................................................................................................74
Appendix 1...........................................................................................................................74
Interview questions..........................................................................................................74
Appendix 2...........................................................................................................................75
Interview transcripts.........................................................................................................75

8DISSERTATION
List of Figures
Figure 1: Mercantilist theory....................................................................................................23
Figure 2: Monopolistic advantage theory................................................................................24
Figure 3: Uppsala model of internationalization......................................................................25
Figure 4: Conceptual framework.............................................................................................28
Figure 5: Small businesses in Australia by industry................................................................37
Figure 6: Small business in Regional areas in Australia..........................................................38
Figure 7: Percentage share of industry value added.................................................................38
Figure 8: Employment by small businesses in Australia.........................................................39
Figure 9: Employment by business size and sector.................................................................40
Figure 10: Drivers of internationalization for Australian small-scale businesses....................41
Figure 11: Number of small-scale businesses in Australia......................................................43
Figure 12: Barriers to innovation for small businesses...........................................................45
Figure 13: Small business survival rates..................................................................................45
Figure 14: Business lending by banks......................................................................................46
Figure 15: Government assistance for small-scale businesses.................................................47

9DISSERTATION
Chapter 1: Introduction
1.0 Overview
The ultimate purpose for the business organizations, irrespective of the size, is to earn
profit, maximize revenue, increase customers and expand business. The organizational
mission and vision is developed in such a way that the business organizations gain
competitive advantage and sustain their position in the market (Anand, 2015). As mentioned
by Bloch and Bhattacharya (2016), if past scenario is to be considered, the number of
business organizations in each sectors have increased significantly thereby, giving rise to
tough competition. This is because the customers have more options than before for fulfilling
their needs and desires. Hence, keeping the customers glued in the long term is challenging if
the business organizations do not keep fulfilling the needs of the customers and changing
their business strategies accordingly. However, as criticized by Mokhtar (2015), making
presence in the international market is not always easy considering the existence of already
established and successful business firms.
Going international and embracing the global market is becoming necessary for the
small business enterprises because the Australian market is slowly saturating. Hence, to
sustain the market and strengthen the position, tapping new opportunities and making new
ventures is needed. As a result, the small business enterprises can expand into new markets
that will help in attracting more customers, profit and business generations and strengthening
position in the global market (Burns, 2016).
Small business enterprises are growing rapidly in Australia and comprise almost 44%
of the shares of the employment (Dwyer and Kotey, 2015). Considering the rapid growth, it
can be said that in the international market, small business enterprises can leave a mark and
enlarge themselves significantly. Micro businesses make up large proportion of the small

10DISSERTATION
business enterprises in Australia and are a driving force for the Australian economy (Perry
and Rowe, 2015). Its economic contribution is huge and provides employment to large
portion of the Australian workforce thereby, facilitating entrepreneurship and innovations in
the business sectors (Perry and Rowe, 2015). Small business enterprises have minimum 1 and
maximum 4 employees and compose almost 98% of the Australian businesses. Moreover,
one third of the entire GDP comes from small business enterprises and they make up 98% of
the businesses in Australia (Douglas, 2015).
However, the rise of numerous small business organizations has made the business
environment highly saturated that is resulting in challenges for sustaining. As a result, the
small business enterprises in Australia are aiming to expand themselves by going
international and embracing the global market.
1.1 Problem statement
The challenges faced by the small business enterprises while going international and
entering the global market are evident. The small business enterprises are encountering
challenges in terms of globalization efforts because communication and keeping track of the
foreign market fails to meet the standard (Beelen and Jones, 2015). This is because of the
vastness of the international market and as the name indicates, small business enterprises are
unable to cope up due to evident limitations (Paul, Parthasarathy and Gupta, 2017).
Another challenge that small business enterprises are facing while internationalizing
is the availability of financial resources. The export fees and tariffs are problems when small
business enterprises are aiming to go international and embrace the global market. This is
because of limited capital and financial resources for the small business enterprises.
Moreover, inadequate financial planning is also noticed for small business enterprises that are
of utmost significance when successful international ventures are expected (Dwyer and

11DISSERTATION
Kotey, 2015). As a result, the small business enterprises are failing to keep up with the pace
and leave a mark among the existing giants in the international market (Ribau, Moreira and
Rapso, 2018).
1.2 Research aim
The aim of the research is to explore the factors that contribute in the
internationalization of the small-scale businesses followed by finding out the most significant
factors promoting the business for going global.
1.3 Research objectives
The objectives of the research are:
 To examine the feasibility of small-scale businesses in going global
 To recognise the factors essential for making the international expansion
 To find out the challenges facing by Australian small business enterprises in
internationalisation
 To recommend some possible strategies for going global
1.4 Research questions
The questions of the research are:
 What are challenges facing the Australian small business enterprises in
internationalisation and how can they be addressed?
 What could be some possible recommended strategies for going global of small
business enterprises?
 How can the potential outcome of the research benefit the small-scale businesses in
Australia to go global?

12DISSERTATION
1.5 Research significance
The rise of competition across the business sectors have increased over the years due
to the rise of similar types of organizations. As a result, the business organizations shows
increased focus and engagement in expanding business and attracting customers because
these are the only means of sustaining the competition (Anand, 2015). If the recent business
sector is to be considered, small business enterprises are subjected to challenges and are
facing issues of embracing the global platform and entering the international market. The
primary reason for the small business enterprises to encounter such a situation is due to the
existing business giants in respective sectors. Hence, it is necessary for the small business
enterprises to conduct a thorough market research before indulging into international
ventures.
In order to develop a better understanding about the international customers, it is
necessary to develop a blueprint of the products development and marketing strategy
(Bostrom, Bonnedahl and Silver, 2017). The research is significant because undertaking the
research will enable to look into the factors such as unfamiliar cultures in global market and
the issues related to physical distance among the places for the small business enterprises.
Moreover, the research will help the small business enterprises to learn about the potential
customers and the target customers respective to their organization (Kraus et al., 2017).
For achieving the objectives of the research, positivism philosophy, deductive
approach, exploratory design and interview will be used. The sample size will be 3 that will
be selected using non-probability sampling technique and 8 open-ended questions will be
used for interviewing the samples through Skype. Both primary and secondary data collection
processes will be used followed by qualitative data analysis by developing relevant themes
that will be backed up with suitable graphs and tables.

13DISSERTATION
1.6 Structure of the dissertation
Six major chapters comprises the overall structure of the dissertation and the six
chapters include introduction, literature review, research methodology, data analysis,
findings, discussions, conclusion, and recommendations. Each of the chapters play s
significant role and needs to be developed consecutively.
Introduction: From the name of the chapter, it can be inferred that this chapter introduces
the topic of the research. In doing so, this chapter provides an overview about the research
topic followed by pointing out the problem that is to be investigated in the consecutive
chapters. Based on this, the aim, objectives and questions are formulated that lays the overall
foundation of the research.
Literature review: After the introduction chapter comes the literature review chapter that
mainly focuses on reviewing and shedding light on to the past researches and studies. As a
result, the findings and the opinions of different authors can be critically evaluated thereby;
developing a data enriched section for the future researchers.
Research methodology: The third chapter focuses on the various types of methodological
tools those are available for analysing the collected data. In doing so, each of the
methodological tools are defined and discussed followed by justifying the selection of
specific methods for the current research.
Data analysis: Once the methods have been mentioned, it is used for collecting as well as
analysing the data so that the aim and objectives of the research is fulfilled. The results
obtained from different secondary resources are further analysed by using suitable methods.
Findings and discussions: In this chapter, the analysis of the previous chapter is found and
discussed accordingly by the appropriate use of secondary resources used in developing the
literature review.

14DISSERTATION
Conclusion and recommendations: This is the last chapter of the research where an overall
conclusion is deduced that addresses the problem and the rationale followed by data obtained
in the data analysis section.
1.7 Summary
Hence, in this chapter, it can be summarized that adequate information about small
business enterprises in Australia have been provided that helped in identifying the problem
that is to be investigated in the consecutive chapters successfully. From the information
given, it can be inferred that small business enterprises are catalysts for the overall Australian
GDP but at the same time needs to embrace the international market for improved future
opportunities.

15DISSERTATION
Chapter 2: Literature review
2.0 Overview
The literature review chapter is structured with the aim of shedding light on the past
researches and studies conducted in the same field. This chapter helps in identifying the
independent and the dependent variable based on which the entire chapter is developed.
Information are taken from past researches that provide opportunity to compare and contrast
the opinions of different authors in respect to the research topic thereby, developing a data
enriched section within the research. For the current study, the literature review chapter
focuses on internationalization and why small businesses need to go international followed by
identifying and critically analyzing the factors influencing internationalization for small
businesses.
2.1 Concept of internationalization
Internationalization is a process practiced in business for improving the involvement
of the specific organization or firms in the international markets (Anand, 2015). As
mentioned by Eriksson et al. (2015), internationalization is defined as the act of conducting
business in host countries successfully. However, as argued by Forsgren (2015),
internationalization is also defined as the technique of planning and implementing products
and services in such a way that it can be adapted easily across the globe. In order to ensure
successful internationalization, business organizations need to understand and appreciate the
values, beliefs, business strategies and behaviours of the international markets (Beelen and
Jones 2015). Moreover, entrepreneurs and small businesses are concerned about maintaining
the product and service qualities along with commitment and innovations for corporate social
responsibility while going international (Knight and Liesch, 2016).

16DISSERTATION
2.2 Factors influencing small businesses to go international
As known, internationalization is a business strategy that needs to be adopted by small
businesses for making a successful international presence; certain factors need to be
considered suitably. The different factors that small businesses need to consider for
internationalization are the owner’s international orientation, domestic market conditions,
industry globalization, established networks, established networks, human capital and foreign
ownership and internationalization (Bouncken, Schuessler and Kraus, 2015).
2.2.1 Owner’s international orientation
The primary distinction of small businesses is due to the central role played by the
owner of the firm because the owner or the manager is directly involved in making strategic
decisions. As mentioned by Felzensztein et al. (2015), the small businesses are highly reliable
on the abilities of the owners and the managers when it comes to work. This is because unlike
large and multi-national organizations, small businesses have limited pool of professionals
those are employed for fulfilling specialized tasks. Cavusgil and Knight (2015) have
identified that the significant role of the owners and managers for small businesses in
determining the strategic direction of the business. Limited knowledge about foreign
opportunities and limitations of the management in terms of avoiding risks can make
internationalization highly undesirable and unsuccessful.
However, as argued by Anwar, Shah and Khan (2018), to a large extent, successful
internationalization is dependent on the proactive initiative for pursuing international
business opportunities by the vision of the owners and managers. Additionally, the
knowledge exposure of the owners and managers about international vision also signifies
successful internationalization (Calabrò, Brogi and Torchia, 2016). It can be said that the
positive perception of the managers or the owners about international markets facilitates more
resources towards the strategic planning aiming towards influencing growth at an

17DISSERTATION
international level. Hence, small business needs to use the knowledge of the owners or the
entrepreneurs for ensuring successful internationalization (Calabro et al., 2016).
2.2.2 Domestic market conditions
Domestic market conditions are the precursors of internationalization for the small
businesses. As mentioned by Cavusgil and Knight (2015), rise of similar types of business
organizations have given rise to tough competition for small businesses in the domestic
markets. Hence, expanding business and attracting and retaining customers have increased
manifolds. As a result, the tough and highly competitive business environment nationally
triggers the firms to venture into the international market. Firms look for untapped
opportunities outside their home market thereby, facilitating internationalization (Cuervo-
Cazurra, Narula and Un, 2015). However, as argued by Hashim (2015), firms need to have
appropriate strategic planning for making successful internationalization after identifying
tough competition in the domestic market.
With intense competition in the domestic market, firms need to show increased
innovativeness and efficiency for keeping their position intact. This intensifies the level of
competition among the firms domestically and firms give more for strengthening their
position. Moreover, small firms have the ability to withstand the factors of the business
infrastructure both nationally and internationally. Additionally, firms can indulge themselves
in import and export strategies so that the relationship with the foreign marketers can improve
in due course before going international completely (Adomako, Opoku and Frimpong, 2017).
2.2.3 Industry globalization
The structure of the global industry indicates the extent where the organization has
more global partners in the international market. According to Kim and Aguilera (2015),
global industries are defined as the ones where the competition occurs among the firms

18DISSERTATION
located in different countries. Small business finds it hard and challenging situations from
international firms those operate in the local market as well. Hence, the interaction between
the local organizations and the global firms give rise to opportunities for the small businesses
in the international markets within same sectors or industry (Anand, 2015). However, as
argued by Anand (2015), for small businesses adopting globalization successfully is often
challenging because of inadequate resources and expertise and skills. Considering the pace of
globalization, combating with it is an issue for the small businesses. This is due to lack of
both human and financial resources for the small businesses. They do not have skilled
workforce and money for implementing the change promptly that affects their domestic
performance. As a result, small businesses tend to lose their customers at the home country
that ignites the need of internationalization (Yang, Lu and Jiang, 2017).
2.2.4 Established networks
Network is of utmost significance when it comes to successful business. Successful
network refers to increased number of connections for the business organizations that needs
to be made with time for the businesses. As mentioned by Oehme and Bort (2015), successful
and established refers to positive and healthy relationships with the other industry partners.
When it comes to internationalization, the position and relationship with partners of the
industry matters because it can contribute largely towards the process of internationalization.
For large business organizations, the established network in the industry is huge. As a result,
the business organizations are able to gain competitive advantage and make
internationalization a success. However, for small businesses, making established networks is
necessary for strengthening their position in the long-run and surviving the industry or sector
Hertenstein, Sutherland and Anderson (2017). Going international is a strategy that small
businesses can undertake so that they can makes successful and established networks in the

19DISSERTATION
long run. This is a technique that can enable the small businesses to partner with other firms
that can help them grow and ensure business expansion accordingly (Dodgson, 2018).
2.2.5 Human capital
In respect to the national firms, the foreign organizations come across wide range of
additional issues due to differences and variety in respect to ethics, customer behavior and
culture. As commented by Onkelinx, Manolova and Edelman (2016), for exports and
successful international activities, it is significant for small businesses to have greater level of
capabilities and competencies. In internationalization, inadequacy of qualified individuals is
said to be an internal barrier that makes internationalization challenging. Hence, for small
businesses lack of adequate human resources makes it difficult for addressing and operating
in foreign markets. However, as argued by Chen, Hsu and Chang (2016), in spite of having
qualified individuals, some small businesses fail due to inappropriate strategic planning and
risk aversion abilities.
The role of human capital in successful internationalization is also based on resources
available. As mentioned by Castano, Mendez and Galindo (2016), the knowledge and skills
of the employees are valuable assets to the organizations. This signifies the need of human
resources in achieving competitive advantage compared to tangible and financial resources.
Appropriate human capital indicates education, experience and skills those can contribute
well for taking the organization forward at an international level (Castro, Rosa and Pinho,
2015). For instance, when a small business is venturing into an international market, the role
of individuals or employees cannot be denied because it is their expertise and skills that make
internationalization successful.

20DISSERTATION
2.2.6 Foreign ownership and internationalization
It has been seen that an association between the structure of the ownership and
internationalization. This is because of the significant impact imposed by the particular
characteristics that is existence of foreign shareholders. As mentioned by Yoshino and
Wignaraja (2015), successful internationalization for small businesses does not only include
sales, production and the resources those are located internationally but depends on the
financial side. This indicates the type of investors the small businesses have at the
international platform. Foreign ownership signifies greater deal of knowledge about the
foreign market thereby, helping the small businesses to make successful internationalization
(Cui et al., 2015).
2.3 Benefits of internationalization for small businesses
Considering the exposure of the global market, internationalization is a benefit for the
small businesses. As mentioned by Jibeen and Khan (2015), internationalization for small
businesses is beneficial as this allows penetrating into the market thereby, gaining all the
advantages of being the first one in the unknown market. This is because early adopters gains
competitive advantage that is a necessity for surviving any competition and hence, small
businesses are aiming to be the first one, as the competitors are limited. Internationalization
facilitates growth for small businesses because they begin from local market and grow from
foundation. As a result, both customer base and sales increases consecutively (Fabricius,
Mortensen and Haberland, 2017).
However, as argued by Ho, Lin and Yang (2015), being the first one in an
international market is challenging as well because the small businesses do not have any one
to refer to or follow. Internationalization for small businesses is also advantageous because
this provides them with the scope of diversification and attracts foreign investment
opportunities. As opined by Benito, Rygh and Lunnan (2016), business diversifications

21DISSERTATION
enable grabbing untapped opportunities and exploring them and providing the target
audiences with something new. This keeps the customers glued with the small businesses that
increase sales and revenue. However, as criticized by Castro, Rosa and Pinho (2015), failure
in appropriate planning and strategizing results in unsuccessful diversifications at
international market that becomes difficult to overcome (Rivera, Semrad and Croes, 2016).
2.4 Challenges of internationalization for small businesses
The vastness of the global market often creates challenges for the small businesses to
ensure successful internationalization. Though the benefits of internationalization for small
businesses are evident, the challenges and their consequences cannot be denied altogether.
According to Anand (2015), liability of outsider ship is one of challenges of
internationalization for small businesses. This challenge occurs because of small businesses
possess inadequate knowledge about the international business market and also about the key
players of the target market. Moreover, liability of foreignness is also a challenge when it
comes to internationalization of the small businesses due to the psychic distance such as
language barrier and difference in terms of law that give rise to problems (Paul, Parthasarathy
and Gupta, 2017).
However, as argued by Bouncken, Schuessler and Kraus (2015), the fear of failure of
successful internationalization should not restrict small businesses to implement the strategy
for long term success. With internationalization, another challenge that is evident for small
businesses is to understand the local preferences and launching the right product or service
accordingly. As mentioned by Calabro, Brogi and Torchia (2016), as the small businesses are
new to the international market they lack experience, skills and expertise of conducting
business. Inadequate knowledge about the local preference makes things even difficult for
small businesses. Additionally, the internal and external nature of the internationalization
process also imposes challenges for small businesses (Scholes, Mustafa and Chen, 2016).

22DISSERTATION
2.5 Strategies for overcoming internationalization challenges for small businesses
As the challenges exist, small businesses need to find ways for overcoming the
challenges accordingly so that successful internationalization can be practiced. As mentioned
by Thurner, Gershman and Roud (2015), one of the techniques of overcoming challenges
related to internationalization is to understand the preference of the locals. When the small
business ventures into the international market, they need to develop adequate knowledge
about the host country and their choices. This will enable to gain deeper in-sight about their
preferences and identify the product portfolio and making sales and marketing strategy
accordingly. However, as argued by Symeonidou, Bruneel and Autio (2017), apart from
understanding the local preferences, partnering with the right international and local shipping
providers can help in overcoming internationalization challenges for small businesses. This is
the key to successful internationalization because international shipping providers can help
businesses test new products with ease followed by avoid stocking and offering larger
product portfolio.
Moreover, studying the local culture and laws carefully also makes it easy for small
businesses to overcome internationalization challenges. It is necessary for the small business
going international to study the laws, rules and regulations of the host country so that they
can ensure that those are followed while conducting business thereby, eradicating the chances
of fines and penalties (Pellegrino and McNaughton, 2015).
2.6 Theoretical framework of internationalization
To understand internationalization better and its effectiveness for small businesses,
the models and theories plays an important role. Hence, for this research, the theories and
models used for gaining deeper in-sight about internationalization are mercantilist theory,
monopolistic advantage theory and Uppsala model.

23DISSERTATION
2.6.1 Mercantilist theory
The mercantilist theory of the internationalization was developed in the 16th century
and is regarded as one of the oldest theories of internationalization. According to Magnusson
(2019), the amount of silver and gold possessed by a country indicates the wealth of the
country. The theory of mercantilist highlights the belief that countries need to engage them
with more import and export activities that will in turn help them to increase their hold of
gold. This indicates the need of the country to emphasize on trade surplus because it is
necessary for value of the exports to be more than the value of the imports. Hence, it can be
said that the countries need to avoid making trade deficits (Vaggi and Groenewegen, 2016).
Figure 1: Mercantilist theory
(Source: Vaggi and Groenewegen, 2016)
The mercantilist theory proposes that the economic condition need to enrich them
continuously by restraining the imports and facilitating the exports. Free trade is a strategy
that can be used by small businesses because both the parties can be benefitted due to free
trade. Countries such as Singapore, Germany and Japan follow mercantilism theory and the
small businesses are following neo-mercantilism theory. According to the neo-mercantilism
theory, small businesses increase the benefits according to the interest of higher prices for the

24DISSERTATION
products those are traded internationally thereby, ensuring stability of price and supply
(Horrocks, 2017).
2.6.2 Monopolistic advantage theory
The monopolistic advantage theory indicates that the firms or the business
organizations use their existing advantage while internationalization. As mentioned by
Buckley and Ghauri (2015), firms and business organizations use their specific and exclusive
assets for incurring higher returns. As the assets are specific to the firms and business
organizations, replicating them is difficult for the competitors. The theory highlights that the
direct foreign investors are able to enjoy the benefits as monopolistic or as proprietary
advantage because of their role in expanding the market that small businesses lacked due to
limited exposure. According to the theory, the specific assets of the small businesses might
include technological innovations, marketing techniques, more knowledge of technology and
unique production technique.
Figure 2: Monopolistic advantage theory
(Source: Luo and Zhang, 2016)
Additionally, specific assets for incurring higher returns for business organizations
also include management, finances or economies of scale. Hence, in an expanding market,
the foreign investors are considered as monopolist. As a result, the firms or organizations

25DISSERTATION
who want to expand in the global market and ensure successful internationalization need to
try and gain monopolistic advantage in any of the areas that will be advantageous for them
when their enter a new market along with keeping the existing market intact (Hashim, 2015).
The large business organizations operating globally aim towards using this approach while
they perform internationalization (Luo and Zhang, 2016).
2.6.3 Uppsala model
Another theory of internationalization is Uppsala model that indicates the methods
used by firms and organizations time and again for intensifying their activities in the
international market. The main focus of the model is the process followed by the firms or
organizations while expanding in the foreign markets. Hence, it can be said that Uppsala
model is based on the learning process that the firms undergo and the evolutionary opinions
and viewpoints (vahlne and Johanson, 2017). It is said that Uppsala model is developed from
the behavioral theory that describes the evolutionary nature of the organizations in
accordance with the nature of the target audiences and the markets of the host country.
Figure 3: Uppsala model of internationalization
(Source: Forsgren, 2016)

26DISSERTATION
Initially, the organizations collect adequate knowledge regarding the significant
factors about the target market prior entering the market. Moreover, after entering the target
market, the firms gain further knowledge and develop accordingly for capturing the target
market as well as sustaining the target market successfully. According to Uppsala model,
once the process of internationalization begins, it will keep moving forward irrespective of
the direction of the strategic decision taken by the organizations or business entities
(Forsgren, 2016).
2.7 Strategies small businesses need to take for internationalization
The exposure of small businesses is restricted to the local markets only and while
internationalization suitable strategies need to be considered for making it successful and
worth the effort. The strategies that small business can undertake for internationalization are
multi-domestic strategy, global strategy and transnational strategy.
2.7.1 Multi-domestic strategy
It is necessary for the firms or the organizations to sacrifice the efficiency in order to
focus on the responsiveness of local needs of the target markets. As mentioned by Lakshman,
Lakshman and Estay (2017), according to the multi-domestic strategy, firms try to gain
adequate local responsiveness by customizing marketing strategy as well as the offering in
terms of the product in such a way that national conditions are met. Small businesses can use
multi-domestic strategy because this allows them to develop more targeted advertising that
carters to the customers of a specific market directly. As a result, the difference of perceiving
things of the target customers in the international market can be overcome suitably thereby,
ensuring successful internationalization (Kobrin, 2015).

27DISSERTATION
2.7.2 Global strategy
Global strategy can be used by firms when they intend to sacrifice the needs o the
locals within specific markets in order to facilitate on emphasizing efficiency. As mentioned
by Vogelmeier (2017), global strategy provides opportunity to gain economies of scale by
offering similar products and services to each market. However, when needed minimal
modifications or changes are done for implementing global strategy successfully by small
businesses. Microsoft is an example of global strategy because it offers same products in
across the globe (De Massis et al., 2018). However, as argued by Guillotin and Mangematin
(2015), undertaking global strategy can be expensive for firms because it is an expensive
investment and requires considerable amount of time, effort and research.
2.7.3 Transnational strategy
Transnational strategy is considered in between multi-domestic strategy and global
strategy. As a result, the firms adopting this strategy balance out the local preferences as
multi-domestic strategy as well as desires of efficiency among different countries such as
global strategy (Van Tulder, 2015). McDonald’s is an example of transnational strategy
because it offers wide range of food items under the same brand name. Hence, it can be said
that transnational strategy enables the firms to implement and offer the good things they
possess to different countries across the globe. However, with transnational strategy, the
political, legal and operational risk cannot be neglected (Fabricius, Mortensen and Haberland,
2017).

28DISSERTATION
Factors impacting small-scale business for Internationalisation
Owner’s international orientation
Industry globalization
Domestic market conditions
Established networks
Human capital
Foreign ownership and internationalization
2.8 Conceptual framework
Figure 4: Conceptual framework
(Source: Created by the Author)
The conceptual framework above is developed with the purpose of highlighting the
overall content of the literature review. The conceptual framework highlights the different
factors that influence internationalization for small-scale businesses. The factors include
owner’s international intention, domestic market conditions, industry globalization,
established networks, human capital and foreign ownership and internationalization. These
factors are discussed in detail and critically analyzed for determining their impact on small-
scale businesses while they opt internationalization.
2.9 Summary
Hence, from the above content and information in this chapter, it can be said that
internationalization is a key for the small businesses to survive the respective business sectors
and strengthen their position. Rise of small businesses have been encountered that contributes

29DISSERTATION
largely towards the economy of the country. However, growth of similar types of
organizations has made the business sectors more claustrophobic thereby, it hard for the small
businesses to survive. Thus, internationalization is a way or strategy that small businesses can
undertake to sustain the competitive market by gaining adequate advantage and scope of
contributing more efficiently towards the economic growth of the countries.

30DISSERTATION
Chapter 3: Research methodology
3.0 Overview
The overview of the chapter helps in understanding the different methods that are to
be implemented while trying to gain a proper result from the research. The chapter provides a
definition for the research methods that are to be adopted so that justification of the research
can be made. The application of the research methods can help in determining the success
that the research may have and based on the success appropriate application can be made.
The chapter also highlights the ethics that are considered for the research and the limitations
faced by the researcher in trying to implement the research in a proper manner. A timeline is
also provided for understanding the progress of the research.
3.1 Research philosophy
The research philosophy helps in the providing a definition of the methods that are
used for the collection of data required for the progress of the research. As stated by Neuman
(2014) research philosophy is of three types that includes the positivism, interpretivism and
realism research philosophies. These philosophies are used individually for the collection of
data based on their characteristics. Taylor, Bogdan and DeVault (2015) also stated that the
application of the positivism philosophy provides the research with a powerful structure with
large sample size. It helps in providing a scientific approach towards the research and
provides assurance of the accuracy and validity of the data. According to Flick (2015), the
application of the interpretivism philosophy is done for sample sizes that are small and the
focus is on the belief of the topic made by the public in general. Realism philosophy
combines the characteristics that are associated with positivism and interpretivism philosophy
and hence the approach is used for limited research.

31DISSERTATION
3.1.1 Justification for the selection of the chosen philosophy
The reason for the choice of positivism philosophy is that it takes into account any
factual knowledge that can be obtained via the observations made. At the same time,
positivism philosophy helps in the collection of data by using scientific process. The
researcher can collect the data which can be based on the factors that helps making a small
business into an international market and thus helps in the objective collection and
interpretation of the data. Along with this, positivism research philosophy can be dependent
upon the quantifiable observations made and it can lead to a statistical analysis. Thus, the
overall concentration of the researcher on factors of the small businesses internationalisation
can be met.
3.2 Research approach
The research approach helps researcher to maintain a validity of the research
hypothesis. As stated by Mackey and Gass (2013) research approach can be of two types that
includes the inductive and deductive approach. These two concepts are dissimilar to one
another can the effective application of one can lead to validity of the research hypothesis.
Vaioleti (2016) is of the opinion that the application of the deductive approach helps in
validating the hypothesis by the analysis of the literature review. Therefore, alignment of the
observations made can be done with the existing theories and concepts. On the other hand,
the application of the inductive approach is towards the involvement of new theories and
concepts. As stated by Lewis (2015) these are adopted from the observations made while
collecting data. Thus, the data collected is followed by the new theories and concepts, which
help in validating the research hypothesis.
3.2.1 Justification for the selection of the chosen approach
For this research, the researcher has selected the application of the deductive research
approach. As stated by McCusker and Gunaydin (2015) the reason for this is that sufficient

32DISSERTATION
number of existing literature can be presented hat focuses on the concepts associated with
internationalisation. At the same time, the application of the deductive research approach
provides a transition from a general topic to a specific focus area of the topic. According to
Vaioleti (2016), the logic applied is about the deductive inference and the researcher can
deduce the concept from the theories that exist. The application of the deductive approach
can help in the collection of the data and help in the validation of the proposal. The researcher
can begin with the theories with compulsive the test as well as implication based on the data.
3.3 Research design
The application of the research design is done for providing the researcher with an
opportunity to provide responses to the research questions. As pointed out by Panneerselvam
(2014) the application of descriptive design helps in the exploration of the new ideas and at
the same time provides an explanation of the specific phenomenon associated with the
research. As stated by Flick (2015) research designs consists of descriptive, explanatory and
exploratory research. The application of the exploratory research design helps the researcher
to explore concepts along with new and relevant ideas. These ideas can be implemented to
the research questions. At the same time, Bernard (2017) stated that the explanatory research
design helps the researcher to gain an opportunity for providing an explanation to the factors
that are present with the research. These are used for gaining supporting information from the
analysis. Thus, it can be said that the descriptive research design is characterised by the
combination of the other two research designs that is the explanatory and exploratory
research designs.
3.3.1 Justification for the selection of the chosen design
For this research, the application of the exploratory research design is undertaken.
This is because the factors, promoting and discouraging internationalisation of the small-scale
businesses can be explored by gaining general insights about the situation. No new theories

33DISSERTATION
are to be generated and the suitability of the research can be associated with the examination
of the influential factors for international expansion of the small-scale businesses.
3.4 Data collection process
The data collection process includes the primary and the secondary data collection
process. As stated by McCusker and Gunaydin (2015) in the primary data collection
technique, every data is collected from various participants in a direct manner. Along with
this, the primary data collection technique can be divided into qualitative and quantitative
techniques. In the case of the primary quantitative data collection, large number of sample
size is adopted. However, in the case of primary qualitative data collection, method focus is
more on the quality of the data instead of the numbers. As stated by Alvesson and Skoldberg
(2017), the application of the secondary data collection process uses only resources that
already possess information. The resources used include the books, journals and official
websites.
3.4.1 Justification for the selection of the chosen data collection process
The research is based on the conduction of both primary and secondary data so that
the objectives of the research can be met. The collection of the secondary data is to be done
from various journals, books and official websites. At the same time, the application of the
primary data is done via the interview process. The interview is to be done via Skype. For the
research 8 open-ended questions are to be asked to the participants in the form of structured
interview.
3.5 Sampling technique and sampling size
The sampling techniques that are usually used for collecting samples include the
random probability sampling and the non-probability sampling technique. From the
observation made by Bauer (2014), the application of the random probability technique helps

34DISSERTATION
in collecting data from a large population. Thus, the participants that are selected for the
sampling population possess an equal opportunity of being selected for the data collection
survey. At the same time, Roberts (2013) stated that in the non-probability sampling
technique, the researcher makes an individual selection of the participants by considering the
research aim and objective. The non-probability sampling technique provides an enhanced
quality of data as the sample size is considered is small.
3.5.1 Justification for the selection of the chosen sampling technique
For this research the sampling technique that is used is the non-probability sampling.
This is because the sample is to be collected based on the subjective judgement instead of
random selection. The researcher has selected the operational managers of small business
enterprises in Australia as the sample population. For this the researcher can take help from
social networking sites so that the managers can be identified. The sample size chosen for the
researcher is three. The reason for the small sample size is to reduce any form of complexity
that may exist during data collection.
3.6 Data analysis technique
Data analysis technique can be done by the application of the quantitative as well as
the qualitative technique. The quantitative data analysis technique provides the researcher
with focus on the quantity of the data. The data collected is analysed by the numerical values
and by considering statistical tools and techniques. Techniques such as the use of bars, graph
and charts are adopted for the analysis. Along with this, the application of Statistical Package
for the Social Sciences (SPSS) is also used for the analysis of the data. As stated by Wiek and
Lang (2016) the application of the qualitative technique helps the researcher to maintain
focus on the quality of the data. This is done by considering an analysis of the transcript. This
form of data collection techniques is used mostly for conducting secondary research based on
analysis of already published resources. The analysis is done by using thematic data.

35DISSERTATION
3.6.1 Justification for the selection of the chosen data analysis technique
For this researcher the focus is on the qualitative data analysis. This is because the
qualitative data are both descriptive as well as subjective. The interview-based data can be
analysed by the use of thematic data analysis. The emphasis of the thematic data analysis is
on the examination, pinpoint as well as the recording the data. The development of the
themes is done to address the existing research questions. The researcher can segregate the
data by themes. For this research, five themes are to be used. Each theme is to be addressed
by the use of table or graph.
3.7 Reliability and validity
Reliability helps in providing stability and consistency of measurement. It is used for
identifying the areas that is required to be measured and for improving the scores of obtained
from the analysis of primary data. According to Mertens (2014), validity refers to the
measurement that is used for an accurate identification of results. As stated by McNabb
(2015) the application of reliability and validity can help in providing a research with
authenticity and at the same time can be useful for understanding the changes that are to be
maintained. In this research, the application of reliability and validity can be used to measure
the authenticity of the responses provided by the operational managers with that of the
research conducted via the literature review
3.8 Ethical considerations
The research is conducted using human participants. Therefore, the researcher needs
to follow certain ethical norms and regulations. It is necessary that the researcher gain proper
approval from the University before commencing with the research. The researcher is
required to fill an ethics form so that the interview process can be conducted. The emails sent
by the researcher need to be from the consent forms gained from the operation managers of
the small business enterprises. Along with this the research is to be conducted by applying the

36DISSERTATION
codes mentioned in the Privacy Act 2014 of Australia. Data breach is to be avoided. The data
collected is to be used only for the research purposes. The researcher cannot indulge in any
form of coercion and the researcher need to maintain the confidentiality of the participants.
3.9 Research limitations
One of the limitations that can be considered for the research is that of the budget. His
is because, in order to gain accurate and valid information, the researcher requires to gain
access to various the journal articles, books and websites. These can be charged at premium
rate sometimes. At the same time, time can also be considered as a limitation for the
researcher. This is because the researcher can be restricted to conduct a though research in
case it takes excess time. Along with this, as stated earlier, the sample size of the research is 3
and thus this can be the cause of limitation for the study. This is because the researcher may
not be able to gain the required information and verification of the feasibility of the data from
a large number of people cannot be done. It can be difficult for the researcher to convince the
managers for agreeing with the views related to internationalisation. Along with this, the
researcher need to maintain large number of data as the research is done using secondary as
well as primary research.
3.10 Summary
Thus, from the analysis it can be said that the application of the selected methods can
have a high influence on the outcome of the research. The justification provided for the
application of these research philosophies can help in the successful completion of the
research. It can help in attaining the aims and objectives associated with the research taking
into consideration the ethical grounds that are required to be maintained. The limitations
posed some form of hindrance however, overall, the research methods adopted are
appropriate for commencing with the research.

37DISSERTATION
Chapter 4: Data analysis
4.0 Overview
The principle concept of data analysis section is to evaluate the data in such a way
that research aim and objectives are fulfilled along with answering the questions of the
research. These themes are identified while analyzing the data and by using information from
various secondary resources such as books, journals and articles. Using secondary sources for
analyzing the themes provide opportunity to determine the present condition of the small-
scale businesses of Australia and to determine the reasons why small-scale businesses are
opting for internationalization. Additionally, the rise of small-scale businesses in Australian
market can also be seen thereby determining the positives and the negatives of it.
4.1 Findings and analysis
Theme 1: Small-scale businesses and their contribution to the Australian economy
Small-scale businesses make up large section of the Australian economy and
contribute largely towards the overall economic growth of the country. Almost half of the
employment in the private and non-financial sector and over a third of production comprises
of the small-scale businesses in Australia (Aph.gov.au, 2019). In Australia, small business
owners set up their businesses as sole proprietorship or companies and are seen to have
highest contribution in sectors such as agriculture. As mentioned by Aph.gov.au (2019),
small businesses in Australia are a major source of innovation for the Australian economy
and almost 90% of the small businesses engage them in innovations. The contribution of
small businesses towards innovation is increasing due to new technological developments.

38DISSERTATION
Figure 5: Small businesses in Australia by industry
(Source: Aph.gov.au, 2019)
The above picture highlights the number of small businesses in Australia as per
industry. From the picture, it can be inferred that small businesses have risen in almost all
sectors in Australia thereby, contributing largely towards the economic growth of the country.
If the locations are to be considered, the rise of small businesses are dispersed across
Australia and are not concentrated in any specific region. The image below highlights the
growth of small businesses in terms of region (Rba.gov.au, 2019).

39DISSERTATION
Figure 6: Small business in Regional areas in Australia
(Source: Rba.gov.au, 2019)
Apart from contributing towards the economic growth of the country, the small
businesses have also added value to the country. The small businesses in each of the sectors
have added major values compared to the already existing and established businesses in
Australia (Treasury.gov.au, 2019).
Figure 7: Percentage share of industry value added
(Source: Canstar.com.au, 2019)
From the above image of the graph, it can be seen that the small businesses have
added the maximum value to the respective industries. As the rise of small businesses is seen
the most in agriculture, forestry and fishing sector, it has been found to have added the
maximum value as well. Additionally, rental, real estate and hiring are found to have made
the maximum contribution in Australian business sector (Canstar.com.au, 2019).

40DISSERTATION
Figure 8: Employment by small businesses in Australia
(Source: Aph.gov.au, 2019)
The graph above demonstrates the employment percentage in small businesses in
Australia. Almost 4.8 million people have been employed by the small businesses and have
seen to rise continuously when compared with previous years. For instance, employees in
small businesses are seen to rise by 4.3% (Aph.gov.au, 2019).

41DISSERTATION
Figure 9: Employment by business size and sector
(Source: Asbfeo.gov.au, 2019)
From the image above, it can be seen that the maximum number of employment
across different industries is in the small businesses compared to medium and large
businesses in Australia. This indicates the rise of small-scale businesses in Australia and their
contribution in terms of economy, value and employment. From the interview of the
operation managers, it can be said that even they agree that small-scale businesses have
increased over the years that have made the Australian business sectors competitive. Hence,

42DISSERTATION
the small-scale businesses need to take their business to the next level by establishing
themselves at the international platform.
Theme 2: Internationalization for Australian small-scale businesses
Internationalization has become a key attribute among the small-scale businesses of
Australia. This is because of the increased competition among the small-scale businesses in
the home country. The image below highlights the different factors those act as precursors
that ignites the need of internationalization for the small-scale businesses in Australia.
Figure 10: Drivers of internationalization for Australian small-scale businesses
(Source: Scholes, Mustafa and Chen, 2016)
The condition of the market has become competitive considerably in Australia over
the past years. This is due to rise in the number of small-scale businesses over the years that
have enforced the domestic market to change. The level of competition in Australian
domestic market has become highly competitive that have made it difficult for the small-scale
business to survive and conduct business. The scope for the small-scale businesses have

43DISSERTATION
become limited that has questioned the survival of businesses (Dodgson, 2018). Hence,
internationalization is a strategy that the small-scale businesses of Australia can undertake
with the purpose of invading new market and business opportunities. This will provide
opportunity for the small-scale businesses to expand their business to new markets, attract
new customers and investors. As a result, the small-scale businesses will be able to give a
different dimensions altogether to their business by successful internationalization (Graves
and Seet, 2017).
The small-scale businesses are also opting for internationalization because this will
allow them to address more sophisticated capabilities including entrepreneurs and founders
for their business that is operated at a small-scale. Innovations is challenging for small-scale
businesses due to inadequate expertise and workforce. Hence, if the small-scale businesses go
for internationalization, they will be able to find new experts, skills and entrepreneurs that
can make them successful in the big market. Additionally, the small businesses in Australia
can also have access to unique resources those were otherwise unable to them in the
Australian market. As a result, for Australian small-scale businesses, internationalization is
an approach or strategy that can be used for long term survival in respective business sectors
(Pinho and Pinheiro, 2015). After interviewing the operation managers, it can be known that
even they believe that business organizations operating at the small or domestic level need to
grab the global opportunities. This will help them to gain competitive advantage and sustain
in the long run. The operation managers believe that different factors such as established
network, changing domestic environment and industry globalizations those are perusing the
small-scale businesses to set their foot at the international platform.
Theme 3: Benefits of internationalization for small-scale businesses

44DISSERTATION
The contemporary globalization has a strong influence on the small businesses and
their philosophy when it comes to internationalization. According to reports Onkelinx,
Manolova and Edelman (2016), small businesses are the dominants in terms of business
activities for any country and its economy. As known from the previous information that
there is a rise of small-scale businesses in Australia, they market is becoming saturated. The
scope of business expansion and customer growth is getting restricted that is creating a need
for the small-scale businesses of Australia to go international.
Figure 11: Number of small-scale businesses in Australia
(Source: Aph.gov.au., 2019)
The above image indicates the number of small business in particular area in Australia
thereby, giving rise to the need of going internationalization. As the small-scale businesses
are best when it comes to innovations, going international is beneficial because it offered
them new markets and opportunities to tap and make the most out of it. With

45DISSERTATION
internationalization, small-scale businesses have a chance of conquering new territories and
reach more consumers who are native to Australia thereby, increasing sales. When people
living outside Australia have an opportunity of buy things from their home country, it pushes
them towards positive results. Similar is the case for small businesses in Australia, where
internationalization is preferred for tapping unexposed and new opportunities (Knight and
Liesch, 2016).
Another advantage of internationalization for small-scale businesses is
diversifications. As mentioned by Bose (2016), small-scale businesses of Australia can
expand internationally so that they can diversify their assets. This will provide opportunity
for the small-scale businesses to protect the bottom line of the company against unforeseen
events. With internationalization, the range of opportunities for small-scale businesses is
extensive. For instance, if the small business is not doing well in one market, they can make it
up from another market. Internationalization provides opportunity for small-scale businesses
to share and divide the potential risks. However, as argued by Kunday and Senguler (2015),
the image of being unsuccessful at an international platform creates a negative impact on the
global population that is difficult to overcome being a small-scale business.
Talent is another thing that holds back the progress of small-scale businesses. Limited
number of employees highlights lack of talent, skills and expertise that make it difficult for
small-scale businesses to survive in the long run. With successful internationalization for the
Australian small-scale businesses, the firms can have greater access to talents. Hence, the
small-scale businesses of Australia have the opportunity to access new talent pools along
with having access to unique advantages in respect to productivity, revenue, customer growth
and business expansion (Odin and Benson-Rea, 2017). The operation managers indicate that
internationalization is beneficial for the small-scale businesses as this will offer them better
opportunities for expansion, attracting customers and offer success in the long run. The

46DISSERTATION
interview also suggest that internationalization for small-scale business will offer
diversification and innovation opportunities thereby, gaining competitive advantage suitably.
Theme 4: Challenges faced by Australian small-scale businesses while going
international
Continuous rise of small-scale in Australia have resulted in the emergence of the
tough competition among them. Being small in size imposes certain limitations on the
businesses when compared with the medium and large businesses in Australia. The major
challenge that small businesses face while going international is innovations. As mentioned
by Reserve Bank of Australia (2019), the greatest barrier to innovations for small businesses
is access to funds followed by limited or lack of skills or man power.
Figure 12: Barriers to innovation for small businesses
(Source: Reserve Bank of Australia, 2019)
As from the definitions in the above, it can be seen that the maximum number of
employees that small businesses have is 12. Hence, with such small workforce innovation is a
difficult thing to achieve and execute thereby, making it challenging while
internationalization.

47DISSERTATION
Figure 13: Small business survival rates
(Source: Burns, 2016)
Surviving in the international market is highly challenging when it comes to small
businesses. This is because of the limited workforce that small businesses have and with that
small workforce, making a place at the international platform is problematic. The less number
of employees are unable to bear the pressure of making a stable international platform and are
also unable to perform the business activities those hold highest priority (Paul, Parthasarathy
and Gupta, 2017).
Another issue that small-scale businesses of Australia faces while internationalization
is access to finance.

48DISSERTATION
Figure 14: Business lending by banks
(Source: Hillary, 2017)
As the size of the business is small and the tenurity is less, small-scale businesses face
difficulties in attracting potential investors. This is because the investors question the
credibility and idea of the business. The lenders might feel that there is less scope of survival
for the small-scale businesses at an international platform and hence, investing on them or
lending money to them will go in vain. Additionally, government funding is also a major
challenge when it comes to successful internationalization of small-scale businesses. As
mentioned by Storey et al. (2016), large business organization enjoys and has access to more
government assistance compared to any other size of businesses.
Figure 15: Government assistance for small-scale businesses
(Source: Storey et al., 2019)
The above image highlights the challenge that small-scale businesses of Australia
encounter when it comes to having access to government assistance. The gap is significant if
government assistance is compared between large and small-scale businesses, that is, 42.6%
and 16% respectively.

49DISSERTATION
Both cyber security and government procurement are also potential challenges that
small-scale businesses encounter when it comes to internationalization. This is because the
hackers assume that the small businesses are technologically less developed that gives them
more opportunities of attacking the information. When small-scale businesses go
international, government procurement is an issue because overall decrease in the percentage
in the government contacts is noticed. This questions the ability of the small-scale businesses
to survive at the international platform considering the existing large players of the host
countries (Sahu, 2015). From the interview, it can be seen that the operation managers have
said that potential challenges for internationalization for small-scale businesses are being an
outsider, limited human and financial resources and lack of adequate expertise and skills due
to the vastness of the international platform.
Theme 5: Possible strategies for overcoming internationalization challenges for the
Australian small-scale businesses
Internationalization is a significant strategy that business organizations need to opt
regardless of their size. Small-scale businesses have the potential of doing big at the
international platform because they have the ability to offer something new to the industry or
sector. The role of marketing is undeniable when it comes to promoting specific products or
firms in a new market. As mentioned by Cacciolatti and Lee (2015), niche marketing is one
of the approaches that small-scale firms can undertake while internationalization. Opting for
niche marketing will enable the small-scale businesses in Australia to distinguish them from
others in the international market. However, as argued by Guillotin and Mangermatin (2015),
lack of experience is a challenge that holds back the small-scale businesses when it comes to
be successful in host countries.

50DISSERTATION
As known from the term, small-scale businesses mean smaller number of employees.
Hence, less number of employees compromises the progress and moving ahead of the small-
scale businesses significantly. As commented by Mukherjee, Makarius and Stevens (2018),
motivating the staffs and sharpening their skills according to the need of the international
market is an effective way of recovering the challenges encountered by the small-scale
businesses. Training the staffs accordingly will enable them to fulfil the business needs and
reach the ultimate outcome. However, as argued by Gronroos (2016), a few numbers of
employees is often an issue even if training is provided. The international market is a vast one
and establishing in the international market with few numbers of employees is not enough.
The finances for small-scale businesses are also limited and needs to be used wisely.
When it comes to internationalization, the expenses tend to increase significantly. It often
becomes difficult for the small-scale businesses to keep track of the financial expenses during
internationalization. As mentioned by Ho, Lin and Yang (2015), keeping track of the
financial expenses on a daily, weekly and monthly is a way that can control the expenses.
This will help the small-scale businesses to maintain the cash flow thereby, restricting the
unnecessary use of finances while going international. Along with keeping track of the
finances of the company, setting small term goals is also a useful strategy for overcoming the
issues faced by small-scale businesses during internationalization. Setting small term goals
will provide opportunity for the businesses to keep track of their progress at international
market and achieve a milestone one at a time (Fey et al., 2016).
4.2 Summary
From the information provided, it can be summarized that small-scale businesses have
risen in Australia over the past years and is a major contributor for the Australian economy.
According to the Australian Taxation Office, a business is said to be small-scale provided the
annual revenue turnover excluding the GST is less than $2 million and have less than 15

51DISSERTATION
employees. The most preferred small-scale businesses in Australia are catering business,
cleaning, online tutoring, website designing and many more. In spite of the growing trend of
small businesses in Australia, it has been found that small businesses are going international
because after certain period it is becoming difficult for the small-scale business to sustain the
domestic Australian market. Hence, for further business expansion and ensuring growth,
small-scale businesses are going international.

52DISSERTATION
Chapter 5: Findings and interpretations
5.0 Overview
In this section, the findings from the previous chapter is analyzed and discussed by
referring to the past studies mentioned in the literature review section. Interpreting the
findings by referring to the past studies provide opportunity to compare and contrast the
findings of the current study. Interpreting the findings helps in providing a clear
understanding about small-scale businesses and their need of internationalization by
considering the current market status.
5.1 Discussions
From the data analysis section, it can be understood that small-scale businesses have
risen considerably in Australia over the past years. The small-scale businesses are
contributing towards the Australia in terms of economy, value and employment. The
information presented by Aph.gov.au (2019) in theme 1 indicates that small businesses in
Australia are a major source of innovation for the Australian economy and almost 90% of the
small businesses engage them in innovations. The information presented by Rba.gov.au
(2019) and Treasury.gov.au (2019) in theme 1 also highlights small businesses have added
the maximum value to the respective industries. As the rise of small businesses is seen the
most in agriculture, forestry and fishing sector, it has been found to have added the maximum
value as well. In terms of employment, it can also be seen that 4.8 million people is employed
by small-scale businesses and have risen considerably.
The rise of similar type of business organizations at the small-scale has only
intensified the competition in Australian business environment. The opportunities for the
small-scale businesses have narrowing down because the fight among the existing ones are
maximizing. According to the information presented in theme 2 by Scholes, Mustafa and

53DISSERTATION
Chen (2016), it can be said that internationalization has become a key attribute among the
small-scale businesses of Australia. This is because of the increased competition among the
small-scale businesses in the home country. This is because the level of competition in
Australian domestic market has become highly competitive that have made it difficult for the
small-scale business to survive and conduct business. Anand (2015), Eriksson et al. (2015)
and Beelen and Jones (2015) in the literature review define internationalization as the act of
conducting business in host countries successfully. It is also defined as the the technique of
planning and implementing products and services in such a way that it can be adapted easily
across the globe.
The information presented from different sources by Graves and Seet (2017), Scholes,
Mustafa and Chen (2016), Dodgson (2018) and Pinho and Pinheiro (2015) in theme 2
highlights the different factors those have influenced the small-scale businesses for
internationalization. The different factors mentioned in the data analysis section are changing
domestic market, globalization and the experience of the owners. In the literature review
section, the different factors facilitating internationalization are industry globalization,
owner’s international orientation, domestic market condition, human capitals and established
network with the foreign investors. Felzensztein et al. (2015), Calabrò, Brogi and Torchia
(2016) and Calabro et al. (2016) mentions in the literature review section that, the small
businesses are highly reliable on the abilities of the owners and the managers when it comes
to work. Limited knowledge about foreign opportunities and limitations of the management
in terms of avoiding risks can make internationalization highly undesirable and unsuccessful.
However, Anwar, Shah and Khan (2018) argue with the above findings and says that the
proactive nature of the small-scale businesses ensures successful internationalization.
Cavusgil and Knight (2015) and Cuervo-Cazurra, Narula and Un (2015) also mentions that
the highly competitive business environment has become tough for the small-scale business

54DISSERTATION
to survive. Due to this small-scale businesses are opting for internationalization because this
broadens the scope of their business significantly. However, Adomako, Opoku and Frimpong
(2017) argue and mentions that firms need to show increased innovativeness and efficiency
for keeping their position intact.
From the interview of the operation managers, it can be said that even they agree that
small-scale businesses have increased over the years that have made the Australian business
sectors competitive. Hence, the small-scale businesses need to take their business to the next
level by establishing themselves at the international platform. It can be known that even they
believe that business organizations operating at the small or domestic level need to grab the
global opportunities. This will help them to gain competitive advantage and sustain in the
long run. The operation managers believes that different factors such as established network,
changing domestic environment and industry globalizations those are perusing the small-
scale businesses to set their foot at the international platform. Moreover, the interview
indicates that internationalization is beneficial for the small-scale businesses as this will offer
them better opportunities for expansion, attracting customers and offer success in the long
run. The interview also suggest that internationalization for small-scale business will offer
diversification and innovation opportunities thereby, gaining competitive advantage suitably.
It can also be seen that the operation managers have said that potential challenges for
internationalization for small-scale businesses are being an outsider, limited human and
financial resources and lack of adequate expertise and skills due to the vastness of the
international platform.
Internationalization comes with own set of benefits for the small-scale businesses and
the ones in Australia are no different. Jibeen and Khan (2015), Fabricius, Mortensen and
Haberland (2017), Benito, Rygh and Lunnan (2016) and Rivera, Semrad and Croes (2016) in
the literature review indicate the different benefits that internationalization has in store for the

55DISSERTATION
small-scale businesses. Internationalization for small businesses is beneficial as this allows
penetrating into the market thereby, gaining all the advantages of being the first one in the
unknown market and being the early adopters they gain advantage that others may lack.
However, Ho, Lin and Yang (2015) criticizes the above finding because being the first one at
the international level is always challenging because the small businesses do not have any
one to refer to or take guidance. Internationalization for small businesses is also advantageous
because this provides them with the scope of diversification and attracts foreign investment
opportunities. However, according to Castro, Rosa and Pinho (2015) in the literature review
the challenge of failure in appropriate planning and strategizing for diversifications cannot be
denied.
The data analysis section also highlights the challenges that small-scale businesses
face when it comes internationalization. In theme 4 of the data analysis section, the
challenges faced by the small-scale businesses in Australia are discussed. Reserve Bank of
Australia (2019), Sahu (2015), Storey et al. (2019), Hillary (2017) and Paul, Parthasarathy
and Gupta (2017) mentions in the data analysis that the greatest barrier to innovations for
small businesses is access to funds followed by limited or lack of skills or man power. This is
because the maximum number of employees for small-scale businesses in Australia is 12 and
with such small workforce innovation is a difficult thing to achieve and execute thereby,
making it challenging while internationalization. Anand (2015) and Paul, Parthasarathy and
Gupta (2017) in the literature review mentions that the major challenge is the liability of
outsider ship and foreignness for the small-scale business in Australia. The data analysis also
mentions that being an outsider restricts the small-scale businesses at the international
platform to have access to government assistance. The gap is significant if government
assistance is compared between large and small-scale businesses, that is, 42.6% and 16%
respectively. This is because assisting the host companies completely minimizes the scope of

56DISSERTATION
home businesses. This compromises the business condition of the domestic business
organization largely. Bouncken, Schuessler and Kraus (2015), Calabro, Brogi and Torchia
(2016) and Scholes, Mustafa and Chen (2016) in the literature review mentions that the
failure of being unsuccessful is also a challenge for the small-scale businesses because
international platform is wide and vast. The level of complexity and competition is much
intense compared to domestic environment that is highly challenging for the small-scale
businesses.
The challenges faced by the small-scale businesses need to be mitigated because they
need to survive in the international platform. According to the information mentioned by
Cacciolatti and Lee (2015) Guillotin and Mangermatin (2015), Mukherjee, Makarius and
Stevens (2018), Gronroos (2016), Ho, Lin and Yang (2015) and Fey et al. (2016) in theme 5
in the data analysis section, niche marketing is one of the ways that small-scale businesses
can undertake while internationalizing. Additionally, motivating the staffs and sharpening
their skills according to the need of the international market is an effective way of recovering
the challenges encountered by the small-scale businesses. The information presented by
Thurner, Gershman and Roud (2015) in the literature review indicates that partnering with the
locals is a technique that can be used for successful internationalization. Once the locals get
involved, the employees of the small-scale businesses can be motivated and trained
accordingly so that the need at the international level is fulfilled.
The discussions interpret that small-scale businesses form large section of the
Australian economy and are in continuous rising streak. This have over populated the
Australian business sector and for new business scopes and opportunities, internationalization
is suitable in the long term.

57DISSERTATION
5.2 Summary
Hence, in this chapter, it can be summarized that internationalization is an approach
that is preferred by small-scale businesses for surviving in the long run. The rise of small-
scale businesses across different business sectors in Australia has given rise to intense and
highly competitive business environment. With the rise of the number of small-scale business
organizations, the opportunity for them at the home country is narrowing down thereby,
restricting their ability to survive. The process of internationalization is a strategy that the
small-scale businesses in Australia can undertake considering the present market conditions
and the intensified competition. Successful internationalization widens the business scope for
the small-scale businesses by enabling them to grab untapped business opportunities and
explore new things thereby, increasing profits, revenues, sales and customers in the long run.

58DISSERTATION
Chapter 6: Conclusion and recommendations
6.0 Conclusion
From the information presented in the above sections, it can be concluded that
Australia has encountered rise of small-scale businesses over the past few years. If the reports
are to be considered, small-scale businesses contribute majorly towards the economy of the
Australia. As the small-scale business is rising, they are also providing half of the
employment for the Australian population. The small-scale businesses in Australia also act as
the major source of innovation and almost 90% of the small businesses are engaged in
different kinds of innovations. However, human and financial capitals are the major
constraints for the small-scale businesses when it comes to innovations.
The small-scale businesses in Australia are rising across different sectors such as
agriculture, mining, manufacturing, construction, distribution services and household
services. Moreover, the rise of small-scale businesses is also not restricted to any particular
location and is emerging consistently throughout different cities of Australia. The rate of
employment offered by the small-scale businesses over the past few years have also
increased. It is seen that almost 4.8 million people have been employed by the small-scale
businesses and the employment have risen by almost 4.3%.
The rise of small-scale business across different sectors is making the business
environment of Australia congested and claustrophobic. The competition is also intensifying
with each passing day and the business scope for the small-scale businesses is minimizing
drastically. Internationalization is one of the key approaches that can help the small-scale
businesses to survive the business markets in the long term. Change in the domestic market
condition, market orientation, market motivation and knowledge about the market are the
different factors that highlights the need of internationalization. Successful

59DISSERTATION
internationalization offers different advantages for the small-scale businesses because they
get greater exposure that is good for their business in the long run. The small-scale businesses
get adequate opportunities when they go international by grabbling untapped opportunities
and providing the host country market something new that the already existing ones are
unable to deliver. However, considering the operating scale of the small businesses,
challenges are evident. Limited financial capitals, lack of adequate innovations due to a
smaller number of staffs along with minimal Government assistance from the host countries
are potential challenges that small-scale businesses face when it comes to
internationalization.
6.1 Linking with objectives
Objective 1: To examine the feasibility of small-scale businesses in going global
Section 2.1 of the literature review section is linked with this objective. This section
talks about internationalization in details that helps in understanding the need of it for small-
scale businesses in the long term. This section helped in understanding the nature of small-
scale businesses and the feasibility of them in going global. On the other hand, theme 2 in the
data analysis section explains internationalization for Australian small-scale businesses and
the extent to which it is feasible enough.
Objective 2: To recognise the factors essential for making the international expansion
This objective is linked the with literature review section 2.2. This section talks about
the different factors those ignites the need of internationalization for small-scale businesses
and play an important role for the success of the business in the long run. This section
compares and contrasts the views and opinions of different authors from past studies that
provide opportunity to address and explain the factors for making international expansion
successful. On the other hand, theme 1 and 3 in the data analysis section highlights the need

60DISSERTATION
and benefits of internationalization for the small-scale businesses by focusing on the factors
from the past studies.
Objective 3: To find out the challenges facing by Australian small business enterprises
in internationalisation
This objective is linked with literature review section 2.4. This section sheds light on
the past studies and identifies the potential issues and challenges that small-scale businesses
face when internationalizing. This section has successfully identified the different challenges
that business organization operating in a small-scale faces when they expand to the global
market thereby, determining the consequences as well. On the other hand, theme 4 in the data
analysis section talks about the different challenges that Australian small-scale businesses
face when it comes to internationalization.
Objective 4: To recommend some possible strategies for going global
This objective is linked with literature review section 2.5. This section talks about the
different ways those can be used for overcoming the challenges for the small-scale businesses
while internationalization. On the other hand, theme 5 in the data analysis section also
mention different strategies those can be used for overcoming the challenges that small-scale
businesses due to internationalization.
6.2 Recommendations
For the small-scale businesses in Australia, it is necessary to ensure
internationalization. This is because successful internationalization will provide greater
business opportunities for the small-scale businesses and even the international market will
be able to enjoy something unique from the Australian business environment. The possible
strategies are listed below;
Learning the host country language

61DISSERTATION
As the demands of the Australian products are not slowing down in the global market,
it is an opportunity that small-scale businesses need to tap. One of the effective ways of doing
so is to learn the language of the host country they intend to set their international presence.
This will ensure effective connectivity and communication with the host population and
improve the sales and business.
Adopting a clear product strategy
It is necessary for the small-scale businesses to have a clear product strategy when
they go international. This can be achieved by developing a leading edge product that will
encourage the population of the new countries. The small-scale businesses have to bring
something new and innovative for the host country that the natives are unable to offer. This
will increase the craze for them at the international platform thereby, maximizing their
demand.
Being proactive and not reactive
Entering a new country is a long term process and plan. As a result, the small-scale
businesses need to be proactive in nature when entering a new market. Hence, it is necessary
for conducting extensive market research and aligning the entire team with the long term
strategic plans.
Going global with an experienced partner
The business environments between the host country and home country are highly
distinctive. As a result, the experience of the home country might not be enough for
conducting business successfully in the host country. It is always advisable that small
businesses need to partner with an experienced local for ensuring successful
internationalization. In this case, the experience of the global partner will help the small-scale
business to set their foot in the host country appropriately.

62DISSERTATION
6.3 Implications of the research
The implication of the research on theory, practice and policy is that the current work
can be used as a valid source of secondary resource for the future researchers because the
information and the findings presented in the study are authentic and valid. As researches
related to business organizations are gaining popularity and small-scale businesses are
increasing rapidly and shaping the business sector, the current study can be referred to for
understanding the potential reasons why small-scale businesses need to internationalize.
6.4 Limitations and future direction of the study
Obtaining the data from different small-scale organizations across different sectors
was a limitation. This is because Australia is a big country with several distinctive business
sectors and numerous small-scale businesses operating under them. Hence, gathering data
with such specificity and across so many organizations were time consuming and limited
time was there for completing the work.
This study is based on the interview information of the operations managers of
different small-scale businesses in Australia and also conducted by analyzing different
secondary resources about Australian small-scale businesses. In the future, research can be
conducted by focusing on any specific small-scale business sector and comparing their past
and present data. Moreover, any specific small-scale business organization of a particular
sector can also be selected and both their managers and executives can be considered for
gathering data about small-scale businesses and factors affecting their internationalization.
Hence, the rate of growth and internationalization for specific small-scale business sectors
can be determined for the Australian market.

63DISSERTATION
References
Adomako, S., Opoku, R.A. and Frimpong, K., 2017. The moderating influence of competitive
intensity on the relationship between CEOs' regulatory foci and SME
internationalization. Journal of International Management, 23(3), pp.268-278.
Anand, B., 2015. Reverse globalization by internationalization of SME's: Opportunities and
challenges ahead. Procedia-social and Behavioral sciences, 195, pp.1003-1011.
Anwar, M., Shah, S.Z.A. and Khan, S.Z., 2018. The role of personality in SMEs
internationalization: Empirical evidence. Review of International Business and
Strategy, 28(2), pp.258-282.
Aph.gov.au. (2019). Small business sector contribution to the Australian economy –
Parliament of Australia. [online] Available at:
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
Parliamentary_Library/pubs/rp/rp1819/SmallBusinessSector [Accessed 5 Nov. 2019].
Aph.gov.au. (2019). Small business sector contribution to the Australian economy –
Parliament of Australia. [online] Available at:
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/
Parliamentary_Library/pubs/rp/rp1819/SmallBusinessSector [Accessed 5 Nov. 2019].
Asbfeo.gov.au. (2019). [online] Available at:
https://www.asbfeo.gov.au/sites/default/files/Small_Business_Statistical_Report-Final.pdf
[Accessed 5 Nov. 2019].
Beelen, J. and Jones, E., 2015. Redefining internationalization at home. In The European
higher education area (pp. 59-72). Springer, Cham.

64DISSERTATION
Benito, G.R., Rygh, A. and Lunnan, R., 2016. The benefits of internationalization for state‐
owned enterprises. Global Strategy Journal, 6(4), pp.269-288.
Berger, A.A., 2015. Media and communication research methods: An introduction to
qualitative and quantitative approaches. Sage Publications.
Bernard, H.R., 2017. Research methods in anthropology: Qualitative and quantitative
approaches. Rowman& Littlefield.
Bloch, H. and Bhattacharya, M., 2016. Promotion of innovation and job growth in small‐and
medium‐sized enterprises in Australia: Evidence and policy issues. Australian Economic
Review, 49(2), pp.192-199.
Bose, T.K., 2016. Critical success factors of SME internationalization. Journal of Small
Business Strategy, 26(2), pp.87-109.
Boström, G.O., Bonnedahl, K.J. and Silver, L., 2017. Growth ambitions and
internationalization among newly started small Swedish firms. In Motivating SMEs to
Cooperate and Internationalize (pp. 191-203). Routledge.
Bouncken, R.B., Schuessler, F. and Kraus, S., 2015. The theoretical embedding of born
globals: Challenging existing internationalization theories. International Business &
Economics Research Journal (IBER), 14(1), pp.39-46.
Brannen, J. ed., 2017. Mixing methods: Qualitative and quantitative research. Routledge.
Bryman, A., 2015. Social research methods. Oxford university press.
Bryman, A., 2017. Quantitative and qualitative research: further reflections on their
integration. In Mixing methods: Qualitative and quantitative research (pp. 57-78). Routledge.

65DISSERTATION
Buckley, P.J. and Ghauri, P., 2015. The internalisation theory of the multinational enterprise:
A review of the progress of a research agenda after 30 years. In International Business
Strategy (pp. 99-121). Routledge.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cacciolatti, L. and Lee, S.H., 2015. Internationalisation Strategies. In Entrepreneurial
Marketing for SMEs (pp. 104-115). Palgrave Macmillan, London.
Calabrò, A., Brogi, M. and Torchia, M., 2016. What does really matter in the
internationalization of small and medium‐sized family businesses?. Journal of small business
management, 54(2), pp.679-696.
Calabro, A., Campopiano, G., Basco, R. and Pukall, T., 2016. Governance structure and
internationalization of family controlled firms: The mediating role of international
entrepreneurial orientation. European management journal, 2(3), pp.374-389.
Canstar.com.au. (2019). Small To Medium Businesses Contribute Half The GDP | Canstar.
[online] Available at: https://www.canstar.com.au/business-loans/small-medium-businesses-
contributing-half-australias-gdp/ [Accessed 5 Nov. 2019].
Castaño, M.S., Méndez, M.T. and Galindo, M.Á., 2016. Innovation, internationalization and
business-growth expectations among entrepreneurs in the services sector. Journal of Business
Research, 69(5), pp.1690-1695.
Castro, R., Rosa, M.J. and Pinho, C., 2015. A model for stakeholders’ influence on
internationalization: a contribution from the Portuguese, Brazilian, and Dutch cases. Journal
of studies in international education, 19(2), pp.160-181.

66DISSERTATION
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and
capabilities perspective on early and rapid internationalization. Journal of International
Business Studies, 46(1), pp.3-16.
Chen, H.L., Hsu, W.T. and Chang, C.Y., 2016. Independent directors’ human and social
capital, firm internationalization and performance implications: An integrated agency-
resource dependence view. International Business Review, 25(4), pp.859-871.
Cuervo-Cazurra, A., Narula, R. and Un, C.A., 2015. Internationalization motives: Sell more,
buy better, upgrade and escape. The Multinational Business Review, 23(1), pp.25-35.
Cui, L., Li, Y., Meyer, K.E. and Li, Z., 2015. Leadership experience meets ownership
structure: Returnee managers and internationalization of emerging economy
firms. Management International Review, 55(3), pp.355-387.
Davies, M.B. and Hughes, N., 2014. Doing a successful research project: Using qualitative
or quantitative methods. Palgrave Macmillan.
De Massis, A., Frattini, F., Majocchi, A. and Piscitello, L., 2018. Family firms in the global
economy: Toward a deeper understanding of internationalization determinants, processes,
and outcomes. Global Strategy Journal, 8(1), pp.3-21.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Douglas, H., 2015. Embracing hybridity: A review of social entrepreneurship and enterprise
in Australia and New Zealand. Third Sector Review, 21(1), p.5.

67DISSERTATION
Dwyer, B. and Kotey, B., 2015. Financing SME growth: The role of the National Stock
Exchange of Australia and business advisors. Australian Accounting Review, 25(2), pp.114-
123.
Eriksson, K., Johanson, J., Majkgård, A. and Sharma, D.D., 2015. Experiential knowledge
and cost in the internationalization process. In Knowledge, Networks and Power (pp. 41-63).
Palgrave Macmillan, London.
Fabricius, A.H., Mortensen, J. and Haberland, H., 2017. The lure of internationalization:
Paradoxical discourses of transnational student mobility, linguistic diversity and cross-
cultural exchange. Higher Education, 73(4), pp.577-595.
Felzensztein, C., Ciravegna, L., Robson, P. and Amorós, J.E., 2015. Networks,
entrepreneurial orientation, and internationalization scope: evidence from Chilean small and
medium enterprises. Journal of Small Business Management, 53, pp.145-160.
Fey, C.F., Nayak, A.K., Wu, C. and Zhou, A.J., 2016. Internationalization strategies of
emerging market multinationals: A five M framework. Journal of Leadership &
Organizational Studies, 23(2), pp.128-143.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Forsgren, M., 2015. Managing the Internationalization Process (Routledge Revivals): The
Swedish Case. Routledge.
Forsgren, M., 2016. A note on the revisited Uppsala internationalization process model–the
implications of business networks and entrepreneurship. Journal of International Business
Studies, 47(9), pp.1135-1144.

68DISSERTATION
Graves, C.R. and Seet, P.S., 2017. Internationalization Through Investor, Advisory Board,
and Accountant Networks: An Exploratory Study of Australian SMEs. In Internationalization
and Managing Networks in the Asia Pacific (pp. 143-168). Chandos Publishing.
Grönroos, C., 2016. Internationalization strategies for services: a retrospective. Journal of
Services Marketing, 30(2), pp.129-132.
Guillotin, B. and Mangematin, V., 2015. Internationalization strategies of business schools:
how flat is the world?. Thunderbird International Business Review, 57(5), pp.343-357.
Hashim, F., 2015. SMEs’ impediments and developments in the internationalization process:
Malaysian experiences. World Journal of Entrepreneurship, Management and Sustainable
Development, 11(2), pp.100-119.
Hertenstein, P., Sutherland, D. and Anderson, J., 2017. Internationalization within networks:
Exploring the relationship between inward and outward FDI in China’s auto components
industry. Asia Pacific Journal of Management, 34(1), pp.69-96.
Hillary, R., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Ho, H.F., Lin, M.H. and Yang, C.C., 2015. Goals, Strategies, and Achievements in the
Internationalization of Higher Education in Japan and Taiwan. International Education
Studies, 8(3), pp.55-65.
Horrocks, J.W., 2017. A short history of mercantilism. Routledge.
Jibeen, T. and Khan, M.A., 2015. Internationalization of higher education: Potential benefits
and costs. International Journal of Evaluation and Research in Education, 4(4), pp.196-199.
Kim, J.U. and Aguilera, R.V., 2015. The world is spiky: an internationalization framework
for a semi‐globalized world. Global Strategy Journal, 5(2), pp.113-132.

69DISSERTATION
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born
global. Journal of World Business, 51(1), pp.93-102.
Kobrin, S.J., 2015. Is a global nonmarket strategy possible? Economic integration in a
multipolar world order. Journal of World Business, 50(2), pp.262-272.
Kraus, S., Mitter, C., Eggers, F. and Stieg, P., 2017. Drivers of internationalization success: a
conjoint choice experiment on German SME managers. Review of Managerial Science, 11(3),
pp.691-716.
Kunday, Ö. and Şengüler, E.P., 2015. A study on factors affecting the internationalization
process of small and medium enterprises (SMEs). Procedia-Social and Behavioral
Sciences, 195, pp.972-981.
Lakshman, S., Lakshman, C. and Estay, C., 2017. The relationship between MNCs’ strategies
and executive staffing. International Journal of Organizational Analysis, 25(2), pp.233-250.
Lampard, R. and Pole, C., 2015. Practical social investigation: Qualitative and quantitative
methods in social research. Routledge.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), pp.473-475.
Luo, Y. and Zhang, H., 2016. Emerging market MNEs: Qualitative review and theoretical
directions. Journal of International Management, 22(4), pp.333-350.
Magnusson, L., 2019. Mercantilism. In The Elgar Companion to John Maynard Keynes.
Edward Elgar Publishing.
McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), pp.537-542.

70DISSERTATION
McNabb, D.E., 2015. Research methods for political science: Quantitative and qualitative
methods. Routledge.
Mertens, D.M., 2014. Research and evaluation in education and psychology: Integrating
Mokhtar, N.F., 2015. Internet marketing adoption by small business enterprises in
Malaysia. International Journal of Business and Social Science, 6(1).
Mukherjee, D., Makarius, E.E. and Stevens, C.E., 2018. Business group reputation and
affiliates’ internationalization strategies. Journal of World Business, 53(2), pp.93-103.
Nardi, P.M., 2018. Doing survey research: A guide to quantitative methods. Routledge.
Neuman, W.L. and Robson, K., 2014. Basics of social research. Pearson Canada.
Noble, H. and Smith, J., 2015. Issues of validity and reliability in qualitative
research. Evidence-Based Nursing, pp.ebnurs-2015.
Odlin, D. and Benson-Rea, M., 2017. Competing on the edge: Implications of network
position for internationalizing small-and medium-sized enterprises. International Business
Review, 26(4), pp.736-748.
Oehme, M. and Bort, S., 2015. SME internationalization modes in the German biotechnology
industry: The influence of imitation, network position, and international experience. Journal
of International Business Studies, 46(6), pp.629-655.
Onkelinx, J., Manolova, T.S. and Edelman, L.F., 2016. Human capital and SME
internationalization: Empirical evidence from Belgium. International Small Business
Journal, 34(6), pp.818-837.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..

71DISSERTATION
Paul, J., Parthasarathy, S. and Gupta, P., 2017. Exporting challenges of SMEs: A review and
future research agenda. Journal of world business, 52(3), pp.327-342.
Pellegrino, J.M. and McNaughton, R.B., 2015. The co-evolution of learning and
internationalization strategy in international new ventures. Management International
Review, 55(4), pp.457-483.
Perry, M. and Rowe, J.E., 2015. Fly-in, fly-out, drive-in, drive-out: The Australian mining
boom and its impacts on the local economy. Local Economy, 30(1), pp.139-148.
Pinho, J.C. and Pinheiro, M.L., 2015. Social network analysis and the internationalization of
SMEs: Towards a different methodological approach. European Business Review, 27(6),
pp.554-572.
Rba.gov.au. (2019). [online] Available at:
https://www.rba.gov.au/publications/workshops/other/small-bus-fin-roundtable-2012/pdf/01-
overview.pdf [Accessed 5 Nov. 2019].
Ribau, C.P., Moreira, A.C. and Raposo, M., 2018. SME internationalization research:
Mapping the state of the art. Canadian Journal of Administrative Sciences/Revue Canadienne
des Sciences de l'Administration, 35(2), pp.280-303.
Rivera, M.A., Semrad, K.J. and Croes, R., 2016. The internationalization benefits of a music
festival: the case of the Curaçao North Sea Jazz Festival. Tourism Economics, 22(5),
pp.1087-1103.
Sahu, B.K., 2015. A study on global solar PV energy developments and policies with special
focus on the top ten solar PV power producing countries. Renewable and Sustainable Energy
Reviews, 43, pp.621-634.

72DISSERTATION
Scholes, L., Mustafa, M. and Chen, S., 2016. Internationalization of small family firms: The
influence of family from a socioemotional wealth perspective. Thunderbird International
Business Review, 58(2), pp.131-146.
Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.
Storey, D.J., Keasey, K., Watson, R. and Wynarczyk, P., 2016. The performance of small
firms: profits, jobs and failures. Routledge.
Symeonidou, N., Bruneel, J. and Autio, E., 2017. Commercialization strategy and
internationalization outcomes in technology-based new ventures. Journal of Business
Venturing, 32(3), pp.302-317.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research
methods: A guidebook and resource. John Wiley & Sons.
Thurner, T.W., Gershman, M. and Roud, V., 2015. Partnerships as internationalization
strategy: Russian entrepreneurs between local restrictions and global opportunities. Journal
of International Entrepreneurship, 13(2), pp.118-137.
Treasury.gov.au. (2019). [online] Available at:
https://treasury.gov.au/sites/default/files/2019-03/AustralianSmallBusinessKeyStatisticsAnd
Analysis.pdf [Accessed 5 Nov. 2019].
Vaggi, G. and Groenewegen, P., 2016. A concise history of economic thought: From
mercantilism to monetarism. Springer.
Vahlne, J.E. and Johanson, J., 2017. From internationalization to evolution: The Uppsala
model at 40 years. Journal of International Business Studies, 48(9), pp.1087-1102.
Vaioleti, T.M., 2016. Talanoa research methodology: A developing position on Pacific
research. Waikato Journal of Education, 12(1).

73DISSERTATION
Van Tulder, R., 2015. Getting all motives right: a holistic approach to internationalization
motives of companies. The Multinational Business Review, 23(1), pp.36-56.
Vogelmeier, C.F., Criner, G.J., Martinez, F.J., Anzueto, A., Barnes, P.J., Bourbeau, J., Celli,
B.R., Chen, R., Decramer, M., Fabbri, L.M. and Frith, P., 2017. Global strategy for the
diagnosis, management, and prevention of chronic obstructive lung disease 2017 report.
GOLD executive summary. American journal of respiratory and critical care
medicine, 195(5), pp.557-582.
Yang, J.Y., Lu, J. and Jiang, R., 2017. Too slow or too fast? Speed of FDI expansions,
industry globalization, and firm performance. Long Range Planning, 50(1), pp.74-92.
Yoshino, N. and Wignaraja, G., 2015, February. SMEs Internationalization and Finance in
Asia. In Frontier and Developing Asia: Supporting Rapid and Inclusive Growth IMF-JICA
Conference Tokyo (Vol. 18).

74DISSERTATION
Appendices
Appendix 1
Interview questions
How long are you working in the managerial position of a small-scale business?
Do you feel that the number of small-scale businesses have increased in Australia over the
past years?
What are your thoughts about internationalization?
Do you think small-scale businesses should practice internationalization?
According to you, what are the factors that facilitate internationalization of small-scale
businesses?
Considering the big players, do you think internationalization is beneficial for small-scale
businesses?
What are the evident challenges those small-scale businesses while going internationalization
and how it can be overcome?
Out of multi-domestic, global and transnational strategy, which one should be considered by
small-scale businesses for successful internationalization?

75DISSERTATION
Appendix 2
Interview transcripts
How long are you working in the managerial position of a small-scale business?
Operation manager 1: “I have been working as an operation manager of a small-scale
business in Australia for the past 5 years. I started my journey as an executive and have
gradually reached this position. I am working in the small-scale business in the agricultural
sector and I must say that it is the most developing small-scale businesses in Australia.”
Operation manager 2: “Hi, Good Morning!!!! I am working working as an operation
manager in the real estate business that is operated at a small-scale for the past 6 years.
Previously, I used to work as a logistics manager in an established company is Australia but
later joined this small-scale business in real estate.”
Operation manager 3: “I have been working as an operation manager in the mining sector
for the past 8 years or more I suppose. I have changed organizations during my entire
employment terms many times and have worked in both small and large businesses.”
Do you feel that the number of small-scale businesses have increased in Australia over
the past years?
Operation manager 1: “Yes, definitely. Australia have encountered rise of small-scale
businesses over the years that have played a significant role towards the economic growth of
the country. I think small-scale businesses have grown in each and every sector in Australia
and are also rising continuously.”
Operation manager 2: “Without a doubt, it is a yes. When I started off my career, the
number of small-scale businesses can be counted but now they have increased considerably. I
think small-scale businesses have risen so drastically because Australia needed them. The

76DISSERTATION
demand was higher and the existing ones were unable to bring the innovativeness for the
population.”
Operation manager 3: “Yes. I can confirm that when I started my professional career to
now, small-scale business have taken over the Australian market. Small businesses have risen
across different sectors and I must say that they are doing fairly well. The small-scale
businesses are making huge economic contributions.”
What are your thoughts about internationalization?
Operation manager 1: “Internationalization…. I think it is need for domestic business
organizations whether the organization is large, medium or small to tap the international
market. This gives them better opportunity and scope of success in the long term by surviving
the tough market. I feel internationalization is a next step for the firms when they have
achieved their best in the domestic environment.”
Operation manager 2: “For me, internationalization is the next step forward for the business
organizations regardless of their size. With successful internationalization, small-scale
businesses have the opportunity to invade new markets and compensate their saturation point
of the domestic market. Internationalization is a key to succeed in the long term for any
business organizations and firms.”
Operation manager 3: “I consider internationalization as the next level for any businesses
because it provides opportunities to attract new customers, expand business and increase
revenues and profits. In the long run, expanding to new markets is a necessity for businesses
so that they can use their uniqueness for people and increase their demand.”
Do you think small-scale businesses should practice internationalization?

77DISSERTATION
Operation manager 1: “I feel every business organization need to aim towards
internationalization and for small-scale businesses it is no different. As small-scale businesses
are increasing in number in Australia, the competition in the domestic market is getting fierce
and tough. Hence, opting for internationalization will allow small-scale businesses to gain
competitive advantage and not perish due to the intense pressure.”
Operation manager 2: “Yes, definitely. After establishing in the domestic market, going for
the international market provide better business opportunities for the small-scale businesses.
If you have seen the reports until 2018, small-scale businesses have risen across different
business sectors in Australia that have given rise to tough competition.”
Operation manager 3: “Yes, for sure. If the owners of the small-scale businesses aim
towards sustaining in the long run, I feel they need to go for internationalization. Going
international will provide better business opportunities for the small-scale businesses in terms
of business growth, customer increment and better market opportunities.”
According to you, what are the factors that facilitate internationalization of small-scale
businesses?
Operation manager 1: “I think the domestic market condition is one of the main factors that
facilitate internationalization for small-scale businesses. I think the domestic market
conditions are the precursors of internationalization for small-scale businesses in Australia
because the rise of similar type of businesses have only intensified the competition and have
made it tough for the small ones.”
Operation manager 2: “I feel only the vision of going international is not enough for the
small-scale businesses. I think for the small businesses having adequate human and financial
capital is necessary for making it successfully at the international platform. Both manpower
and finances are needed to execute the strategy of internationalization successfully.”

78DISSERTATION
Operation manager 3: “When going international, the firms or entities need to have positive
and adequate relationship with the foreign bodies. This will make the entire process of
internationalization smooth and successful. Partnering with the locals in the international
platform will provide the small-scale businesses support and guidance for expanding in the
host country successfully.”
Considering the big players, do you think internationalization is beneficial for small-
scale businesses?
Operation manager 1: “Indeed. Internationalization is advantageous for the small-scale
businesses because it opens new opportunities and markets for them. The new business
opportunities can act as a booster for the small-scale businesses in terms of expansion, profit
and sales. Being the first of its kind provide benefits for as the early adopters that ensures
long term success.”
Operation manager 2: “Internationalization is beneficial for the small-scale businesses
because I feel it offers numerous business diversifications opportunities for them.
Diversification is the key for successful business and for small businesses internationalization
provides options to grab the untapped market opportunities. However, I feel small businesses
need to plan and strategize appropriately for successful internationalization.”
Operation manager 3: “I think internationalization is a need for small-scale businesses
because it ensures that they do not perish away in the long run due to lack of innovativeness
and diversifications. Internationalization is beneficial for small-scale business as it provides
opportunities for penetrating new market and gain competitive advantage accordingly.”
What are the evident challenges those small-scale businesses while going
internationalization and how it can be overcome?

79DISSERTATION
Operation manager 1: “I feel with small-scale businesses, the challenges are more. Being an
operation manager of small-scale businesses, the evident challenge that we have faced is
being an outsider. Understanding the host country, market, the demands and needs is a
challenge and also the host population hesitates to try us due to the newness. I think
partnering with the locals in the host country can be an option”
Operation manager 2: “I think being small-scale is itself a challenge. This is because of the
limited human and financial capitals. Limited workforce makes it challenging for making
internationalization a success. Possible way of overcoming this challenge is to hire locals
from the host country because they will have better understanding of the international
market.”
Operation manager 3: “The most evident challenge that small-scale business face while
going international is lack of experience and expertise. As they are the first in the market, that
too, international, they do not have anyone to refer to and take guidance from. However,
small businesses can refer to similar type of organizations in the host country to overcome the
challenge.”
Out of multi-domestic, global and transnational strategy, which one should be
considered by small-scale businesses for successful internationalization?
Operation manager 1: “I feel small-scale businesses can opt for multi-domestic strategy
while internationalization because this will allow them to emphasize on the needs of the
locals.”
Operation manager 2: “While internationalization small-scale businesses can opt for
transnational strategy. This is because using this strategy will help the small-scale businesses
to emphasize both on the needs of the locals as well as their efficiency.”

80DISSERTATION
Operation manager 3: “I you ask for my opinion, I think transnational strategy is the most
suited one when it comes to internationalization for small-scale businesses.”