Challenges facing SME in developing countries for business expansion into global market (GC01451)

Research proposals

Research topic: Challenges facing SME in developing countries for business expansion into global market: A case study of Bangladesh

Table of Contents

1.0 Introduction.

1.1 Background of the study.

1.2 Rationale for the chosen topic.

1.3 Purpose for undertaking the study.

1.4 Research problems.

1.5 Research questions.

1.6 Research aims and objectives.

Aims.

Objectives.

1.8 Significance of the study.

2.0 Literature Review.

2.1 Foreign market entry modes.

2.2 Importance of entering into foreign markets.

2.3 Export barriers.

2.4 Home country barriers to enter a foreign market

2.3 Conceptual framework.

2.4 Literature Gap.

3.0 Research Methodologies.

3.1 Research Philosophy.

3.2 Research Approach.

3.3 Research Design.

3.4 Research Method.

3.5 Data collection methods.

3.6 Sample size.

3.7 Data analysis techniques.

3.8 Validity and reliability.

3.9 Ethical issue.

3.10 Limitation.

4.0 Realistic Timelines.

4.0 References.

1.0 Introduction

1.1 Background of the study

SMEs’ international expansion provides SME growth, sales and marketing benefits, and employment opportunities (Lu and Beamish, 2011). Gatington and Anderson (2011) said selecting a suitable method by SME for entry into the international market is crucial. This is because inaccurate decision-making by SMEs may have serious survival and financial implications. According to Lu and Beamish (2011), exporting can be one of the important entry mode options for SMEs into foreign markets. Wheeler et al. (2012) said both direct and indirect exporting is considered as the most popular and dominant because of a lower degree of risk and lower cost commitment. In addition,

1.2 Rationale for the chosen topic

Many developing countries including Bangladesh heavily depend on SMEs as one of the major sources of economic growth. According to Stein et al. (2010), Bangladesh has the highest number of SMEs in South Asia, including India and Pakistan. In Bangladesh, 82% of laborers are working in SME organizations including ready-made garment factories (Ahmed et al., 2011). The ready-made garment sector is the top exporters of apparel products in Bangladesh. However, the SMEs in developing countries, including Bangladesh, have insufficient and incorrect information about the challenges in the foreign market because of a lack of empirical research. Therefore, it has now been an issue for SMEs in developing countries including Bangladesh to identify foreign market entry barriers. In addition, as Arteaga and Fernandez (2010) note, due to weak methodologies, the challenges identified in the previous studies can be inconsistent. This study develops and validates a model on the challenges of SMEs in developing countries (including Bangladesh) in terms of international expansion.

1.3 Purpose for undertaking the study

Although the SMEs in developing countries need to internalize, very little is known regarding the challenges and obstacles that slow down the processes of internationalization (Laufs and Schwens, 2014). According to Hulbert et al. (2013), many of the international SMEs are failing to thrive, where the failure rate is very high in developing countries. Therefore, the purpose of this study is to explore the gaps in existing research and the challenges to SMEs internationalization from the perspective of Bangladesh.

1.4 Research problems

Small and Medium Enterprises (SMEs), mainly in developing countries, face certain challenges when they approach enter within the international marketplace. Arslan et al. (2015) stated that entering the foreign market for SMEs has been a topic of extensive debate for decades. Researchers still recommend studying more to understand the challenges that SMEs face in the global market. On the other hand, the previous researches have mainly examined the determinants of SME internationalization from the perspective of developed countries, whereas the socio-economic situation of developing countries is different from the developing countries (Gao et al., 2010). Although there is a high potential for SMEs growth in developing countries including Bangladesh, there are many barriers that have slowed the internationalization process (Milanzi, 2012). Therefore, it is an issue for SMEs in developing countries to conduct a study on defining the challenges of the international process.

1.5 Research questions

a) How are theories and theories contributing to the internationalization process of SMEs?
b) Which models and theories are most useful to the SME’s internationalization process?
c) What are the challenges of SMEs internationalization in developing countries?
d) What challenges are the SMEs in Bangladesh facing to enter the foreign market?
e) How do SMEs in developing countries can overcome the challenges in the internationalization process?

1.6 Research aims and objectives

Aims

The proposed study aims to find out the challenges as well as barriers of SMEs in developing countries for business expansion into the global market in the perspective of Bangladesh. Then, the study will recommend that SMEs in developing countries overcome the challenges for internationalization.

Objectives

To analyze the roles of theories and models in the internationalization process of SMEs
To assess the models and theories that are most useful to the SMEs internationalization process
To identify the challenges of SMEs internationalization in developing countries
To identify the challenges the SMEs in Bangladesh facing entering a foreign market
To recommend SMEs in developing countries on how the challenges can be overcome in the internationalization process

1.8 Significance of the study

The finding of this study will contribute in different ways for SMEs in developing countries to enter the foreign market. First, this study will explore entry modes and strategies for SMEs that will support SMEs to enter the global market. Secondly, this study will guide the SMEs in developing countries about the potential and importance of entry into the foreign market. Finally, this study will identify barriers of SMEs internationalization in developing countries and provide possible solutions to overcome the barriers………………

Proposal for Undergraduate