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INTERNATIONALIZATION OF SMES AND ORGANIZATIONAL FACTORS IN A DEVELOPING COUNTRY: (A CASE STUDY OF ICT INDUSTRY IN PAKISTAN)

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Author(s): Muhammad Bachal Jamali | Hassan Jawad | Naveed Shaikh | Faiz Muhammad Shaikh | Tahira Afridi

Journal: Australian Journal of Business and Management Research
ISSN 1839-0846

Volume: 1;
Issue: 7;
Start page: 129;
Date: 2011;
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Keywords: SMEs | ICT | Industry

ABSTRACT
The current research explores the Internationalization of SMEs and Organizational factors in Developing countries: A case study of ICT Industry in Pakistan. To test the hypothesized model, a questionnaire was mailed to the top management team of SMEs operating in ICT industry. Out of 500 questionnaires,425 (or 85 percent) were usable for analysis. The strategy of collecting completed questionnaires was exclusively through peer-to-peer communications of the research team with the managers. It was revealed that SMEs as engine of growth play an important role in developing countries for poverty reduction, the role which have attracted the attention of scholars in recent years. This study explores the effect of firm’s characteristics, resource and top management team characteristics on the internationalization of SMEs. Based on the literature, a conceptual model is proposed in which firm’s resource is supposed as intervening variable. As a result, the model shows that top management team variable has both direct and indirect effect on internationalization. In order to survey, top managers of international SMEs in Pakistan ICT sector were asked to fill in a questionnaire. The resulting data was analyzed through structural equation modeling which lead us to codify a causal model accordingly. The research results show a direct and indirect positive effect of top management team on internationalization of SMEs, however it indicates that indirect effect of firm’s characteristics is not significant. As a final point in the paper, a set of guidelines are proposed for internationalization of SMEs in developing countries.
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