Leland Entrekin

Western countries have discovered factors influencing small-to-medium enterprises (SME) internationalisation, yet Eastern nations are still struggling for empirical evidence. This article seeks to investigate the influential factors, identify the most influential characteristics driving SMEs to internationalise and develop a model of SME internationalisation within an Eastern-developing nation, Malaysia. A panel of 16 experts, including academicians, policymakers, supporting government agencies, the Chamber of Commerce and research institutes took part in long distance telephone conversations. To ensure the authenticity of the experts’ stances, they were selected based on their positions, qualifications, affiliations, age and length of working experience. The Expert Panel was identified from the internet and through personal contacts. Majority of the experts involve directly with the SME development in Malaysia. The underlying assumption of this Expert Panel is to give relevant opinions and a legitimate understanding of the internationalisation process of Malaysian SME. The findings from a modified Delphi Technique indicate that networking is the most influential factor, followed by firm characteristics, industry factor, external influence and motivational aspects. Therefore, a Malaysian model of the factors influencing SME internationalization is derived. To deal with complexity of networking as a crucial means to internationalization, a networking linkages model is proposed for practicality. In particular, this study provides some insights into SMEs internationalisation process and identifies suggestions for future research.

This working paper reports a study that focuses on the internationalization processes of manufacturing SMEs in Malaysia. It attempts to discover why these firms internationalize and how the process of internationalizing takes place. A qualitative methodology using a modified Delphi approach of tele-conversation survey was taken for collecting data from a panel of expert. These experts drew attention to domestic and global conditions, government’s incentives and support, firm specific factors, key managers’ background and attitudes, and networking as the main issues contributing to the internationalization process of SMEs in Malaysia.