Literature Review.

Added on - 20 Sep 2019

  • Dissertation

    type

  • 19

    pages

  • 4628

    words

  • 104

    views

  • 0

    downloads

Showing pages 1 to 4 of 19 pages
Running Head: Literature ReviewBarriers to Export Performance in DevelopingCountries Small and Medium Enterprises –Study of the Nigerian Agro-Industry”:Chapter 2- Literature Review
1Literature ReviewTable of ContentsIntroduction:....................................................................................................................................2Literature Review:...........................................................................................................................3Theory of Internationalization for SMEs:....................................................................................3Benefits of Internationalization:..................................................................................................4Motive of SMEs to internationalize:............................................................................................5Background of Nigerian Agro-Industry:.....................................................................................6Barriers to internationalization of the agro-industry:..................................................................8Barriers on export performance of SMEs agro-business:............................................................9Role of government and other institutions in aiding SME internationalization:.......................10Conceptual framework:.............................................................................................................12Organization Readiness:............................................................................................................14Conclusion:....................................................................................................................................14References:....................................................................................................................................16
2Literature ReviewIntroduction:This literature review elucidates the diverse internationalization theories based on which theSMEs undertake to take their operations to an international level. There are several reasons dueto which the modern SMEs look forward to spreading their businesses beyond the nationalboundaries such as for gaining global reputation, enhancing market share, growth, profitabilityand also for the purpose of ensuring sustainability in the long run[ CITATION STa15 \l 1033 ].It can be observed that with the advancement of the emerging nations owing to the enhancedinfluence of globalization, the role played by the SMEs in the economic development of theemerging nations is assuming increasing significance and this is one of the major motivations forthe SMEs to take their businesses to an international arena. The Nigerian agro-industry has thepotential to enhance its current production capacity along with the opportunity to market theagricultural products to different countries which will ensure generation of significant revenuesin billions per year for the country through the export of its agricultural products. However, thereare certain barriers that the SMEs have to face when they are planning to export their productsbeyond the domestic boundary[ CITATION Mik142 \l 1033 ].These are the barriers tointernationalization and exports that have been studied in this chapter. Furthermore, the role ofthe governments and other institutions of the emerging nations in supporting theinternationalization of SMEs has also been analyzed in this chapter. Finally, the discussion of theconceptual framework of the study is put forward with the concept of organizational readinessthat makes the SMEs, especially the ones operating in the agricultural sector to consider thesebarriers and implement appropriate strategies in overcoming them.
3Literature ReviewLiterature Review:Theory of Internationalization for SMEs:In the opinion ofAnderson and Gatignon (1986),international expansion for a businessorganisation is important if it wants to achieve growth and profitability in the long run. Anorganisation of any size or scale must consider a suitable entry mode for entering into aninternational market. There are several factors that need to be considered by an organisation thatwishes to enhance its business operations into other countries and as such a trade-off has to bemade between the costs allocated for several resources and the need for control that is required tobe undertaken by the organisation that wishes to achieve an international expansion. There canbe several modes of international market entry depending on the type of the business, nature ofits products and services and the environment of the business. Some of the most common modesof international market entry undertaken by organisations consist of licensing, joint venture,wholly-owned subsidiary, contractual joint venture, franchising, etc.[ CITATION Eri86 \l1033 ].According to the observations ofWright, Westhead and Ucbasaran (2007),the SMEs faceseveral challenges in expanding their business operations at an international level, such as thelack of adequate funds and other resources, along with absence of adequate technological andtechnical know-how that might facilitate the internationalisation process. The International NewVenture (INV) theory considers international entrepreneurship for the SMEs that is guided byseveral factors like the timing of the process of internationalisation, the entry mode forinternationalization, effects of the factors related to the national environment, availability ofvarious external resources that leverage the motive of internationalization, etc. Therefore, theInternational New Venture (INV) strategy can be considered as one of the most widely
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Unlock This Document