The Role of Corporate Entrepreneurship in Internationalization of Small and Medium Manufacturing Enterprises (SMEs)

By Shankar Chelliah, Mohamed Sulaiman and Jayaraman Munusamy.

Published by The Social Sciences Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Many researchers and practitioners from the industry would agree on the importance of corporate entrepreneurship as an effective means for rejuvenating companies and improving their financial performance. In the era of intense global competition, Small and Medium Enterprises (SMEs) realize that a greater focus is required in entrepreneurial behaviors in identifying foreign market opportunities, seeking partnerships with foreign firms, and building organizational capabilities in order to enhance their competitive advantage. But, what do we really know about the role of corporate entrepreneurship on internationalization among the SMEs? Most of the studies focus on corporate entrepreneurship among established companies who have strengths in both resources and reputations in the market. Within this context, this article describes a study of corporate entrepreneurship and its role in SMEs internationalization. Data were collected from 300 internationalized SMEs in Malaysia, from manufacturing industry representing consumer and industrial products. Regression analysis was then used to analyze the data. The study also examines the impact of size as a moderating variable between corporate entrepreneurship and internationalization. The results suggest that corporate entrepreneurship has a positive impact on internationalization when size functions as moderating factor in relatively smaller firms. This effect on the internationalization, indicates that corporate entrepreneurship is particularly effective practice among SMEs when the companies are small. This study poses two implications for practicing managers and policy makers. First, the study encourages SMEs to nurture corporate entrepreneurship from the beginning or at inception as it pave path for firm internationalization. Second, the study suggests a need to use a long term horizon to judge entrepreneurial actions and its impacts on the firm internationalization.

Keywords: Corporate Entrepreneurship, Small and Medium Enterprise, Internationalization

International Journal of Interdisciplinary Social Sciences, Volume 5, Issue 9, pp.505-516. Article: Print (Spiral Bound). Article: Electronic (PDF File; 672.564KB).

Dr. Shankar Chelliah

Lecturer, International Business, Universiti Sains Malaysia, Minden, Penang, Malaysia

Dr. Shankar Chelliah is currently affiliates with Universiti Sains Malaysia in the International Business section. He is also a visiting lecturer at Open University Malaysia. With strong academic background in International Economics and Strategic Management and fifteen years of corporate experiences with various middle and senior positions in blue chip companies such as Motorola and Intel, Dr. Shankar Chelliah is currently providing consultancy services to key clients from the industry. His current research interests include: 1. Policies and strategies relating to the internationalization of Small and Medium Enterprises (SMEs) 2. Management of international operations, including corporate entrepreneurship, and survival strategies in both multinational enterprises and, small and medium enterprises.

Mohamed Sulaiman

Head, Department of Business Administration, International Islamic University Malaysia, Kuala Lumpur, Malaysia

Prof. Emeritus

Assoc.Prof. Jayaraman Munusamy

Limkokwing University of Creative Technology, Malaysia


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