The Tension between SMEs’ Growth and Sustainability in Emerging and Developed Countries’ Internationalization: Towards a Conceptual Model
Abstract
:1. Introduction
2. Literature Review
2.1. Contextual and Universal Factors in Emerging and Developed Countries’ SMEs’ Internationalization
2.2. Weak and Strong Sustainability and Its Meaning in the SME Internationalization Process
“Much of the confusion in the discussion of strong sustainability arises from a failure to distinguish between the two assumptions dividing weak and strong sustainability. The first is the assumption of substitutability between natural and manufactured capital. The second is that economic well-being “covers” all other concerns. If the second assumption is accepted (as it sometimes is by advocates of strong sustainability) then the argument about substitutability boils down to a purely economic debate about elasticities of substitution, technological advancement and so on. If, on the other hand, substituting financial capital for natural resources is incompatible with maintaining a suitable physical environment for the human species, then strong sustainability implies that we must step outside the conventional market framework to establish the conditions for maintaining human happiness.”
3. Materials and Methods
3.1. Methods
3.2. Materials
4. Results
4.1. Primary Data Results and Analysis
“We are planning to appoint several distributors once our products have been registered with the applicable regulatory authorities.” (Politico-legal).“We will expand further into the international market. This will be facilitated by 4IR”. (Fourth Industrial revolution/digitalization). (Economic).“Despite the opportunities, I may not go into international markets because of the growing anti-South African sentiments.” (Socio-cultural).“Yes, the business will expand further in the future, currently we are first aiming to focus on getting a foothold in the SA market.” (Economic).“Yes, I see my business expanding to international markets in the future because of the internet and the role it plays in the rate of globalization. Because of the internet things are easier to discover, purchase and ship.” (Economic).“Yes, understanding local market requirements and what is required to customize/localize.” (Sociocultural).“No, red tape, political instabilities, lack of support from authorities, and racial discrimination.” (Politico-legal).
“Nigeria. Ghana, United Kingdom, and USA.” (Socio-cultural).“African countries because I believe the role of the African Continental Free Trade Area (AfFTA) is going to play is immense and with time will allow small players(SMEs) to partake in the wealth of Africa and gradually that of the world.” (Politico-legal, socio-legal, economic).“UK and/or USA-size market, disposable income APAC region-growth market and low concentration/competition.” (Economic).“Southern Africa, SA is well resourced and exposed to the latest technologies and financially stable. Well placed to innovation and technology compared to the rest of the continent.” (Economic, politico-legal).“United Arab Emirates. A lot of business investments are created there because most business investments are based there.” (Economic).“Australia—I would like to immigrate there.” (Socio-cultural).“We are concentrating on exporting into several African countries—e.g., Nigeria & Kenya.” (Socio-cultural).“African counties that have thriving customers in our business sectors.” (Socio-cultural, economic).“European (incl.UK) due to sophistication of industries. “Dignified business conditions.” (Economic, politico-legal).“Nigeria, Kenya and Ghana because they believe in the quality of South African goods and services.” (Socio-cultural, economic).
4.2. Secondary Data Results and Analysis
4.3. Factors in the Internationalization of Developed and Developing Countries in the Extension Phase
4.3.1. Developing Countries
4.3.2. Developed Countries
4.4. Factors in the Internationalization of Developed and Developing Countries in the ’Penetration’ Phase
4.4.1. Developing Countries
4.4.2. Developed Countries
4.5. Factors in the Internationalization of Developed and Developing Countries in the ‘Integration’ Phase
Developing and Developed Countries
5. Discussion
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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Rank | Factors that Influenced SME Internationalization | Mean × No of Responses | Type |
---|---|---|---|
1 | Opportunities for business growth | 85.03 (7.73 × 11) | Economic |
2 | Potential demand | 72.99 (8.11 × 9) | Economic |
3 | Profit | 63.99 (7.11 × 9) | Economic |
4 | Business expansion | 62.01 (6.89 × 9) | Economic |
5 | Less restrictive labour laws | 44.00 (5.50 × 8) | Politico-Legal |
6 | Language and cultural affinity | 40.0 (5.0 × 8) | Socio-Cultural |
7 | Sophisticated infrastructure | 9.04 (4.88 × 8) | Politico-Legal |
8 | Overseas government incentives | 31.04 (3.88 × 8) | Politico-Legal |
9 | Low tax opportunities | 31.04 (3.75 × 8) | Politico-Legal |
Rank | Barriers to SME Internationalization | Mean × No of Responses | Type |
---|---|---|---|
1 | Lack of knowledge of the international market (e.g., language, culture, the way business is conducted in the foreign location | 108.96 (6.81 × 16 ) | Socio-cultural |
2 | Legislative (e.g., labour law, company law and red tape) | 106.08 (6.63 × 16) | Politico-Legal |
3 | Financial requirements | 104 (6.50 × 16) | Economic |
4 | Tax requirements | 98.08 (6.13 × 16) | Economic |
5 | Administrative requirements of setting up a business abroad | 94.08 (5.88 × 16) | Politico-Legal |
6 | Cultural and language barriers | 91.04 ( 5.69 × 16) | Socio-cultural |
7 | Lack of business expertise | 84 (5.52 × 16) | Economic |
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Coldwell, D.; Venter, R.; Joosub, T.; Duh, H. The Tension between SMEs’ Growth and Sustainability in Emerging and Developed Countries’ Internationalization: Towards a Conceptual Model. Sustainability 2022, 14, 4418. https://doi.org/10.3390/su14084418
Coldwell D, Venter R, Joosub T, Duh H. The Tension between SMEs’ Growth and Sustainability in Emerging and Developed Countries’ Internationalization: Towards a Conceptual Model. Sustainability. 2022; 14(8):4418. https://doi.org/10.3390/su14084418
Chicago/Turabian StyleColdwell, David, Robert Venter, Tasneem Joosub, and Helen Duh. 2022. "The Tension between SMEs’ Growth and Sustainability in Emerging and Developed Countries’ Internationalization: Towards a Conceptual Model" Sustainability 14, no. 8: 4418. https://doi.org/10.3390/su14084418