1
THE INTERNATIONALISATION OF SMEs IN THE ENVIRONMENT OF
GLOBALISATION FROM THE BARRIERS POINT OF VIEW
I e a Šimbe o á
1
1
PhD . I e a Šimbe o á, Ph.D., B no Uni e si y o Technology, Business and Managemen Facul y, Kolejní 4,
612 00 B no, Czech Republic, Phone: + 420 541 143 750; Fax: +420 541 143 751, E-mail:
simbe o a@ bm. u b .cz
2
THE INTERNATIONALISATION OF SMEs IN THE ENVIRONMENT OF
GLOBALISATION FROM THE BARRIERS POINT OF VIEW
I e a Šimbe o á
Abs ac :
A g ea e pa o bo h in e na ional and na ional li e a u e on in e na ionaliza ion
SMEs and inal heo e ical models a e de i ed om o eign ac i i ies o big
companies. Scien is s’ a en ion has been d awn o he p oblema ic o in eg a ing
SMEs in o in e na ional ans o ma ion especially in he las wo decades. I he
en e p ise is o be success ul (i.e. o be compe i i e, p o i able and iable) unde he
cu en condi ions and mainly unde he condi ions o he common Eu opean ma ke ,
i is necessa y o ocus no only on domes ic ma ke bu expand u he beyond he
coun y on ie . This end is esul ing om he ins an ly g owing compe i i e
p essu e o globalised ma ke . In e na ionaliza ion seems o be one o he p incipal
challenges o small and medium- size en e p ises. The signi ican ole o
in e na ionalizing ac i i ies o en e p ises is he le el o knowledge which he
en e p ise has a ailable and wha is he scope o u iliza ion like. Globalisa ion is a big
challenge o SMEs in ans o ma ion economies on he one side and big h ea on
he o he side. Submi ed pape deals wi h he ques ion o iden i ica ion o ba ie s o
in e na ionaliza ion ac i i ies o SMEs. These ba ie s can come ou om gene al as
well as ield and in e nal en i onmen o he company. In he in oduc ion a e
indica ed heo e ical s a ing poin s o esea ch o his ques ion. F om he la es
ends esul ha jus scope and use o knowledge is becoming he mo i e o ce o
success ul business. Resul s we e used om pe o med empi ic esea ch wi hin he
amewo k o he solu ion o he p ojec GA/402/02/0106 "In e na ionaliza ion o Small
and Medium En e p ises in he Czech Republic".
Key wo ds: In e na ionalisa ion, SMEs, ba ie s, Czech Republic, esea ch
3
THE INTERNATIONALISATION OF SMEs IN THE ENVIRONMENT OF
GLOBALISATION FROM THE BARRIERS POINT OF VIEW
I e a Šimbe o á
1. INTRODUCTION
A g ea e pa o bo h in e na ional and na ional li e a u e on in e na ionaliza ion
SMEs and inal heo e ical models a e de i ed om o eign ac i i ies o big
companies. Scien is s’ a en ion has been d awn o he p oblema ic o in eg a ing
SMEs in o in e na ional ans o ma ion especially in he las wo decades. I he
en e p ise is o be success ul (i.e. o be compe i i e, p o i able and iable) unde he
cu en condi ions and mainly unde he condi ions o he common Eu opean ma ke ,
i is necessa y o ocus no only on domes ic ma ke bu expand u he beyond he
coun y on ie .This end is esul ing om he ins an ly g owing compe i i e p essu e
o globalised ma ke . In e na ionaliza ion seems o be one o he p incipal challenges
o small and medium- size en e p ises. The signi ican ole o in e na ionalizing
ac i i ies o en e p ises is he le el o knowledge which he en e p ise has a ailable
and wha is he scope o u iliza ion like.
1.1. In e na ionalisa ion p ocess
In he pe iod o he de elopmen o in e na ionaliza ion, as a e m, i is essen ial o
s a e ha scien is s ha e sugges ed a spec um o a ious app oaches, which lead
a he o blu ing han clea ing up he e m. O igina ing me hodologies ended o
unwind om he si ua ional pe spec i e o he cu en a i ude, classi ying
in e na ionaliza ion as a dynamic p ocess. The la es inding in his a ea has
emphasized he collabo a ion be ween en e p ises and o he en i ies oge he in he
p ocess o in e na ionaliza ion.
While de e mining he e m o in e na ionaliza ion, we ollow Beamish´ de ini ion
(1990) in ou esea ch. His iew is bo h holis ic in na u e and has he ad an age o
4
clea ing up a ious in e na ionaliza ion p ocesses. He sugges s ha
in e na ionaliza ion is a "p ocess by which i ms bo h inc ease hei awa eness o he
di ec and indi ec impac o in e na ional ansac ion on hei u u e, and es ablish
and conduc ansac ions wi h en e p ises o o he coun ies"(Beamish,
1990,p77).This de ini ion has se e al ad an ages, one being he in eg a ion o
lea ning wi h in es men , i.e. he e a e bo h economic and beha iou al componen s.
Secondly, i enables wha Ko honen e al (1996) a gue ha he impo an bu
neglec ed pa o he p ocess o in e na ionaliza ion, which is in e nal
in e na ionaliza ion, examples a e an i-business and impo o goods and se ices. A
hi d he de ini ion implies a he p ocess han an e en .
In esea ch e ms he deba e on in e na ionaliza ion ha e concen a ed on ac i i ies
o bigge en e p ises o a ew pas yea s bu in he wo pas decades a isible
a emp conce ning smalle en e p ises has been no ed. Se e al s a emen s exis s
ha smalle en e p ises do no ake in o accoun manage ial hinking o bigge - size
en e p ises (e.g.O´Fa el e al, 1988).
Some commen a o s belie e ha none o he p esen "schools" (FDI, Uppsala model
and ne wo k model) is able o classi y in e na ionaliza ion o small and medium- size
en e p ises as a whole. Co iello and McAuley (1999) claim ha all he h ee "schools"
a e p esen ed in li e a u e abou small and medium- size en e p ises. Uppsala model
is used mos o all, ne wo k model and FID ollows. Mos s udies ollow a simple
heo e ic ame ha may ha e a educ i e e ec on he esea ch. Co iello and Mc
Auley judge elemen s o each school may e ec i ely explain he p ocess o
in e na ionaliza ion in small and medium- size en e p ises.
Wha may seem odd is a ela i e absence owa ds FDI. Buckley (1989) s udied
issues ela ed o di ec o eign in es men s o small and medium-size en e p ises,
and a de eloped model ha could be used o e alua e managemen while deciding in
he p ocess o in e na ionaliza ion. Howe e , only a ew scien is s ha e accep ed his
model. Ne wo k school seems o be e icien o join small and medium- size
en e p ises and o he en i ies, a ious o ganiza ions and minis ies, hose ha play
an impo an ole in hei de elopmen on ou side ma ke s (B idgwa e 1992). The
con ibu ion o hese o ganiza ions, speci ically es ablished o suppo small
5
en e p ises, has been men ioned e y o en by scien is s in he wes e n pa o
Eu ope and he USA.
Two sphe es o heo ies speci ic o in e na ionaliza ion o small and medium- size
en e p ises ha e appea ed ecen ly. Fi s one is he esul o wo k by Ko honen e al
(1999) ha looked in o in e nal in e na ionaliza ion o small and medium- size
en e p ises in Finland. They sugges he p ocess o goods impo and se ices is
basic o small and medium- size en e p ises in ha he knowledge o p oduc s,
ma e o quali y and awa eness collec ed du ing nego ia ions and o eign
ela ionship, supplie and cus ome can p o ide an impulse o ou e
in e na ionaliza ion. In eali y, o mos o small and medium-size in es iga ed
en e p ises in e nal in e na ionaliza ion p eceded ou e one. They claim he
p ocesses can be mu ually bound in some o ganiza ions, and sugges ha while
go e nmen na u ally p o ec domes ic ma ke s and can ind impo suspicious,
in e nal in e na ionaliza ion can p o ide signi ican long- ime con ibu ions o he
en e p ises conce ned.
The second sphe e o heo y o in e na ionaliza ion o small and medium-size
en e p ises, being de eloped a p esen , is c i ical o all h ee chie "schools". O ia
and McDougall made a esea ch (New In e na ional Ven u es) o new in e na ional
en u es (McDougall 1989, O ia and McDougall 1994, 1997). The classi ica ion a
new in e na ional en u e as a "business o ganiza ion sea ching om he beginning a
signi ican compe i i e ad an age om he sou ce u iliza ion and sale o esul s in
many coun ies" (O ia and McDougall 1994, p 46).They hink, he phase and model
scope o in e na ionalisa ion a e no con enien o be unde s ood any mo e on how
hese en e p ises a e in e na ionalized, because he s a ed heo y assumes such
en e p ises u ilized om he posi ion a domes ic ma ke .
Bloodgood e al (1997) claims, ha new en u es can aim o in e na ional p esence
om one o wo easons: A i s - in e na ional p esence is equi ed om he poin o
compe i ion in a s a ed sec o , as an example can be cus ome s´ expec a ion
conce ning se ices in in e na ional des ina ions;

6
A second - he new en e p ise may equi e an in e na ional p esence due o he
capi aliza ion o a unique collec ion o manage ial sou ces, global expe ience, new
echnologies and inno a ions, especially as hey may be easily usable apa om
o he s. Despi e he ac Bloodgood e al admi some use ul heo e ical elemen s he e
ha help explain new in e na ional en u es as "s age" (phase) heo y, bu hey a e
no hemsel es su icien . They came o he conclusion ha a slow, se led app oach
o in e na ionaliza ion need no be necessa ily accompanied wi h in e na ional new
en u es; hey also admi he ole o he go e nmen a es ablishing new en e p ises
conce ning ei he iscal policy o na ional base such as esea ch suppo .
1.2. In e na ionaliza ion ba ie s
Se e al s udies dealing wi h ba ie in e na ionaliza ion o expo ing and non-
expo ing en e p ises gene ally a e de o ed o his p oblema ic heo e ically
(Leonido , 1995; Campbell, 1994; Ka skeas and Mo gan, 1994; Mo gan, 1997). On
he basis o hese s udies we may ang ba ie s o in e na ionaliza ion in o i e wide
a eas: inancial, manage ial, and ma ke -o ien ed (including bo h na ional and
in e na ional ma ke s), cha ac e is ics o indus y and en e p ises. Gene ally is known
ha ba ie s o in e na ionaliza ion exis on e e y le el o he in e na ionaliza ion
p ocess.(Mo gan,1997). To unde s and ba ie s may di e om he dependance on
he le el o in e na ionaliza ion o indi idual en e p ises. (Bu on, Schlegelmisch,
1987; Ca ugsil, 1984; Kedi, Choka , 1986, Ka sikean, Mo gan, 1994). These s udies
a e simila in hei concep ual cha ac e is ics issuing o me s udies o unde s anding
expo ba ie s in gene al. (Ka sikean, Mo gan, 1994, Mo gan, Ka sikean 1997,
1998).
1.2.1. Cha ac e is ics o En e p ise
Among basic cha ac e is ics o an en e p ise belongs o example his size. Shaw and
Hassan (2002) ound in hei esea ch o en e p ises p o iding se ices in New
Zealand ha small en e p ises a e mo e capable o be success ul in pene a ion on
o eign ma ke s han big en e p ises. Calo (1994) also s a es, ha size is no a
ba ie o small and medium-size en e p ises.
7
H 1: Size o en e p ise measu ed by he numbe o employees does no
in luence his in e na ionaliza ion ac i i ies.
1.2.2. Cha ac e is ics o indus y
Ano he ac o ela ing o an in e na ional de elopmen o small and medium-size
en e p ises is ha he p ocess may las ela i ely long and esea che s ha e
sugges ed he expo phase i sel could de elop ela i ely long. The p ocess is likely
o be in luenced by he s uc u e o indus y and gi en business en i onmen
(Tyebjee 1994), he e o e he expo signi ican ly di e s in indi idual b anches o
indus y.
Small and medium-size en e p ises in he Czech Republic p esen abou 99, 8% om
he o al amoun o all en e p eneu ial subjec s acco ding o Minis y o Indus y.
9RGiþHN D 9RGiþNRYi  ,Q WKH EUDQFK RI LQdus y he e a e ap ox. 20% o
hese subjec s and employmen a e is abou 47% in he na ional economy.
Bo h Glas and coll. and Smallbo ne a gue ha go e nmen policy may ha e a
signi ican impac on he g ow h and de elopmen o small and medium-size
en e p ises, om which he economy may p o i as a whole. They bo h call o he
de elopmen and implemen a ion o a con enien iscal policy o lowe ax bu den on
small and medium-size en i ies. Ba ie s a e also unde s ood in he sphe e o
insu icien suppo o go e nmen al and non-go e nmen al o ganiza ions, ac ing
adminis a i e bodies, legisla i e secu i y, measu es egula ing expo and e c.
H 2: Go e nmen al suppo o ins i u ions has a signi ican impac on
in e na ionaliza ion ac i i ies o small and medium-size en e p ises.
In e na ionaliza ion may be unde s ood be e in he con ex o an indi idual sec o
and en e p ise (Bo e nad Holmquis 1966, Tyebjee 1994). Bonacco si (1994) claim
ha indus ial s uc u e is impo an because in luences he ela ion be ween he size
o en e p ises and he expo in ensi y
8
9RGiþHNDQG9RGiþNRYiS-24) di ide small and medium-size en e p ises
in he Czech Republic acco ding o hei compe i i e posi ion in o ou g oups:
- Medium-size en e p ises ha ing signi icance o he Czech ma ke and ha ing
long- ime expe ience in in e na ional coope a ion;
- Medium-size en e p ises and small expo en i ies wo king in he a eas o
g ow h and ha ing sho - ime expe ience in in e na ional coope a ion;
- Medium -size and small en e p ises o ien ing on domes ic ma ke and wo king
in adi ional b anches o p oduc ion and consump ion;
- Ve y small en e p ises and mic o en e p ises ancho ed in he local a ea o
domes ic ma ke ega dless expe ience in in e na ional en i onmen ;
$FFRUGLQJWR9RGiþHNDQG9RGiþNRYiDJRRGFRPSHWLWLYHSRVLWLRQLVPDGH
especially by small and medium- size en e p ises ha sys ema ically look a e hei
inno a ion policy ise in p oduc i i y o labou and high quali y o p oduc ion.
H 2a: The eason o inc easing in e na ionaliza ion ac i i ies o Czech small and
medium- size indus ial en e p ises is hei compe i i e abili y in he sphe e o
echnological ma u i y o p oduc s and hei quali y.
1.2.3. Ma ke Cha ac e is ics
To ac well on in e na ional ma ke s is he necessi y o many Czech en e p ises
when conside ing he cha ac e is ics o domes ic economy (small and ela i ely
sa u a ed in e nal ma ke , insu icien na u al esou ces, and ela i ely high deg ee o
specializa ion o indus y).
Liesh and Knigh (1999) claim ha SMEs may u ilize ad an ages o
in e na ionaliza ion such as bigge en i ies so long as hey will be able collec ing
in o ma ion o ex e nal ma ke s. As he small and medium- size en e p ises a e mo e
lexible and eac p omp ly, hey o en ha e he ad an age o being eady o ac i
hey ha e a su icien amoun o in o ma ion and awa eness and a e able o gain.
H 3: En e p ises´ applica ion o ma ke ing ac i i ies has a posi i e impac on hei
in e na ionaliza ion ac i i ies.
9
H 3a: The en e p ises ha engage in in e na ional ade mo e u iliza e he
collec ion o in o ma ion.
H 3b: The en e p ises ha engage in in e na ional ade ollow mo e he needs o
hei cus ome s and hei demands.
H 3c: The en e p ises ha engage in in e na ional ade u iliza e mo e echnology
o op ional ma ke objec i es and hei segmen a ion.
H 3d The en e p ises ha engage in in e na ional ade u iliza e mo e ools o
ma ke ing mix.
1.2.4 Manage ial cha ac e is ics
The link up be ween he p ocess o in e na ionaliza ion and s a egic hinking in small
and medium-size en e p ises equi es some esea ch. The e may be an a gumen
ha inc easing manage ial expe ience o in e na ional ade in luences s a egic
de elopmen o small and medium en e p ises. Tyebje (1994) indica es he
signi icance o de elopmen o manage ial knowledge, his a i udes and ac i i ies o
in e na ionaliza ion o en e p ises´ ac i i ies. Small en e p ises ha e he ad an age in
ha he same people a e likely o deal wi h ei he in e nal o expo p ocesses so ha
he p oblem wi h he ans o ma ion o knowledge and expe ience o employees will
no exis . Fo eign con ac s in he sphe e o ela ionships wi h supplie s may be an
impo an link o he expo in eg a ion (Ma in, 1991).
H 4: The mo e expe ience he manage s o en e p ises wi h in e na ional ades
ha e he mo e in e na ional ac i i ies a e in eg a ed in s a egic planning.
H 4a: The abili ies and expe ience o managemen wi h in e na ional ope a ions
ha e an impac on he in ensi y o in e na ionaliza ion o en e p ises ac i i ies.
H 4b: The en e p ises ha managemen u iliza e ma ke ing ac o s o decision o
he en y o o eign ma ke s a e mo e in e na ionalized.
1.2.5. Ba ie s in he a ea o inancial cha ac e is ics
The p oblem o ise he capi al and sou ces o small and medium- size en e p ises is
one o p oblema ic being in he a en ion o esea che s. (i.g. Fillis, 2001; Buckley,
16
ba ie . F om he poin o iew o a e age da a we may say ha s onge poin s o
en e p ises is chie knowledge o o eign ma ke , collec ed in o ma ion abou he
business p ac ice o o eign compe i o s, abili y o collec in o ma ion abou ma ke s,
a e o unde aking p oduc dis ibu ion on o eign ma ke s, abili y o adjus p oduc ion
wi h o eign s anda ds, abili y o selec and ealize con enien s a egies o pene a e
in o he o eign ma ke , expe ience o in e na ional ope a ions, accep ing new
knowledge, abili y o use up an oppo uni y and language knowledge as well.
All hese ac o s seemed o be s a is ically impo an om he poin o iew o
di e ences be ween INT and NEINT en e p ises. In some cases we e con i med
ela ions be ween abili ies and expe ience o managemen wi h in e na ional
ope a ions and he di e ence be ween INT and NEINT en e p ises, he ela ion
be ween u iliza ion o ma ke ing ac o s and hei in e na ionaliza ion as well. We may
hink ha in ou case pay hypo heses 4a and 4b and by ha we may con i m he
alidi y o hypo hesis 4. The mo e expe ience wi h in e na ional ma ke s manage s o
en e p ises ha e he mo e in e na ional ac i i ies ha e been included in s a egic
planning.
2.1.5 Ba ie s in he A ea o Financial Cha ac e is ics
In he a ea o inancial cha ac e is ics we ha e concen a ed abo e all o a
connec ion be ween inancial sou ces, hei u iliza ion and in e na ionaliza ion
ac i i ies MSP. F om ou en i onmen i is known ha one o he impo an ba ie s o
in e na ionaliza ion may be a p oblem wi h u iliza ion o ex e nal inancial sou ces.
Insu icien inancial sou ces may be a big ba ie while ex ending ac i i ies on o eign
ma ke s. Resul s ha e no con i med hypo hesis 5: Fo small and medium-size
en e p ises he insu icien inancial sou ces a e a ba ie o in e na ionaliza ion
ac i i ies.
Wi hin he ame o esul s has no been con i med any s a is ically impo an ela ion
be ween INT and NEINT en e p ises om he iewpoin o hei u iliza ion o inancial
sou ces. A e age igu es show inexp essi e di e ences in he cha ac e is ics o
ins i u ions used up while inancing en e p ises´ inancial ope a ions. An in e es ing

17
inding is a ela i e wide use o inancial sou ces om Funds o inancing
in e na ional ac i i ies, unds EU e c.
2.2 Conclusion
The p oblema ic o ba ie s o in e na ionaliza ion is he complica ed p oblema ic and
e en in o eign li e a u e no always clea ly desc ibed. Ou expe ience, possibili ies
and access o in o ma ion sou ces ha e in luenced he cha ac e o he p ima y
esea ch. Li e a u e and published esul s o in es iga ion dealing wi h his opic
con i m ha ou ba ie de e mina ion and unde s anding o in e na ionaliza ion ha e
been ela i ely co ec . Howe e , i is necessa y o poin ou o o he possibili ies and
di ec ions o esea ch in his a ea. Ce ainly i would be in e es ing o compa e he
esul s wi h o he ela ed coun ies (coun ies o o me eas e n and middle Eu ope).
In addi ion he a en ion could be d awn mo e e en o a cha ac e is ic o ba ie in he
a ea o mac o economy.
Ou s andpoin o ba ie esea ch was a he a poin o mac o economy,
unde s anding ba ie s om he iewpoin o MSP.
The ce ain limi ed esul o he p esen ed esul s is inc easing unwillingness o
companies o collabo a e in esea ch. The e idence o ha is a ela i ely small
sample o e u ned ques ionnai es o his in es iga ion.
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