INTERNATIONAL MARKETING AND SMES

International Marketing and SMEs

Abstract

As the reduction in the barriers for global commerce continues and the integration of the world economy grows, there is an increase in the importance being placed on the internationalization of small and medium sized enterprises (SMEs). SMEs, defined as firms with less than 500 employees, must actively participate in this growth as their competitive environment becomes more complex. The key problem being addressed by this research is why some SMEs are successful in expanding their business internationally. How does the characteristic of management with a positive attitude towards internationalization impact the degree of internationalization of SMEs? Is there a relationship between an organization's degree of internationalization and entrepreneurial orientation? Is there a relationship between the attitude towards internationalization and entrepreneurial orientation? How does entrepreneurial orientation and attitude towards internationalization, in an uncertain environment, impact the firm's degree of internationalization? It is becoming increasingly important to address these questions as small and medium sized businesses develop survival strategies. The primary focus of this dissertation is to develop an integrated framework linking such constructs as entrepreneurial orientation, attitude towards internationalization and degree of internationalization.

Based on the literature review, hypotheses were developed. Measurement tools were based on scales previously established in the literature for measuring entrepreneurial orientation, attitude towards internationalization, degree of internationalization, and environmental uncertainty. Reliability and validity for the scales have been previously established. The sample surveyed consisted of 1,400 American 8MEs.

Determining the impact of entrepreneurial orientation and the attitude towards internationalization on the market share of international business and international expansion is of interest not only to 8ME's management and owners, but is also of interest to stakeholders and possible host countries. Characteristics are identified that would aid in predicting the probable success or failure of an 8ME considering growth through expanding into global markets. There are few studies that link the degree of internationalization, entrepreneurial orientation, and attitude towards internationalization.

Table of Contents

Chapter 1: Introduction5

Introduction5

Company Overview5

Software Industry (Global - UK)7

Statement of the Problem8

Chapter 2: Literature Review12

Introduction to Entrepreneurial Orientation12

Innovativeness19

Risk Taking21

Proactiveness22

International Orientation23

Attitude towards Internationalization23

Entrepreneurial Intensity25

Characteristics of Entrepreneurial SMEs26

Internationalization Theories26

Internationalization of SMEs30

Environmental Uncertainty31

Market Turbulence33

Technology Turbulence33

Heterogeneity34

Dynamism34

Hostility35

Degree of Internationalization36

Chapter 3: Methodology39

Overview39

Design and Sampling Frame39

Data Collection Procedure42

Survey Items and Interview Questionnaire44

Attitude towards Internationalization Scale45

External Environment Scale45

Degree of Internationalization Measure46

Control Variables47

Analytical Techniques49

Descriptive Statistics50

Chapter 4: Findings and Discussion52

Linking and Coding Processes52

Searching Processes56

Modelling Processes59

Chapter 5: Conclusion61

Conclusion61

Implications and Future Outlook62

References65

Appendix106

Interview Question106

Questionnaire107

Chapter 1: Introduction

Introduction

The aim of this plan is to develop the second part of the marketing communication plan for a mobile sofware company, Tricastmedia which recently released mobile phone software. The marketing of video mobile handsets requires Tricastmedia to confront in detail the other 4 - 6 steps of the zero based marketing communication process which are; developing strategies and tactics, determining the budget and lastly evaluating the effectiveness. Firstly, the plan will initially do a recap of the first three steps; identifying the key steps, the target audience and objectives emphasising a strong link between company's objectives and strategies.

In order to accomplish the marketing objectives identified in the first part ...