STRATEGIES FOR SMALL AND MEDIUM ENTERPRISE INTERNATIONALIZATION

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STRATEGIES FOR SMALL AND MEDIUM ENTERPRISEINTERNATIONALIZATION AND BARRIERS OF INTERNATIONALIZATION ANDEXPORT PERFORMANCE OF LOCAL AGRICULTURAL BUSINESSES IN NIGERIA1
Chapter 5: ConclusionIntroductionInternationalization is one of the effective strategies that help the small and medium-sizedbusinesses to grow and survive in the market.Exporting is a widely used strategy by the SMEsfor enteringto the international market (Bijaoui, 2016).However, as evident in the research,implementation of successful exporting strategies depends on several factors such as readiness ofthe organization to adopt the changes in the international market, the innovative strategies andthe proactive approach of the businesses to meet the needs and wants of customers. Whileexpanding the business to the international market, the SMEs can experience several barrierssuch as knowledge and resource barriers. In the case of the Nigerian agricultural SMEs also, lackof financial and human resources are the two key barriers to internationalization. The Nigeriaagricultural SMEs are a major part of the national economy. In addition to being a source ofeconomic growth for the nation, the businesses are the major job providers also. Therefore ,successful internationalization is necessary for the Nigerian SMEs, not only for theorganizational growth but also for boosting the national growth. The current chapter includesdiscussion on the extent to which the research objectives are met in the study. The chapter alsoincludes recommendations for the Nigerian SMEs for expending their business in theinternational market through the exporting.Linking to Objectives• To study the meaning of internationalizationIn case of a business, the internationalization refers to the process of expanding theorganizational activities in the international market and serving the international customers. Theinternationalization can be done in several ways.Exporting to the other countries is one of themost used ways by the SMEs (Ajayi, 2016).By exporting products to the other countries, theSMEs become able to serve the larger group of customers and it helps businesses to enhancetheir profitability. The research indicates, internationalization can benefit the SMEs byfacilitating them to use new technologies, improve the business processes and earning moreprofit by tapping into the larger customer base. However, the businesses also face different2
challenges at the time of internationalization due to the high difference between the domestic andinternational business.• To examine the internationalization of SMEsAccording to the current research, internationalization is beneficial for the SMEs in severalways. Firstly, the internationalization helps the businesses to get benefitted by the free trade.With help of the modern technology, the businesses become able to offer their products to thelarger customer group (Baumgartner & Rauter, 2017). As an effect, the profitability of theorganization increases significantly. The research also indicates that internationalization helpsthe businesses to develop their workforce. For serving customers in the international market, thebusinesses need to employ a more knowledgeable workforce. In the international market, thebusinesses become able to tap into larger resources and it helps them to develop new skillsamong the workers. The newly skilled workforce is effective for competing with the otherorganizations in the market effectively.• To examine the strategies for SME internationalizationAs evident from the current research, export is a key strategy for internationalization among theSMEs. The research also indicates that initiating the e-commerce operations can be effective forthe SMEs to explore the international market. The effectiveness of exporting depends on threeinternal factors such as the innovativeness of the organizations, proactive nature and the risk-taking approach..The effectiveness of the internationalization is also dependent on thegovernment policies (Elkington, 2018).For incorporating the exporting strategies effectively, thebusinesses need to develop innovative strategies for obtaining competitive advantages. Thebusinesses also need to be proactive for meeting the demands of customers in the internationalmarket and retaining them to the organization. The international market can be highly differentfrom the domestic market of an organization. The SMEs often do not have adequate knowledgeof the international market and the lack of knowledge among the businesses can pose risks tothem. The SMEs also possess limited financial and human resources.The lack of adequate resources can also pose risks to the small and medium businesses.However, for expanding the activities to the international market, the businesses need to be ready3
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