Internationalization of SMEs in Malaysia: A Critical Role of Firm Resources

Noor Azura Azman¹, Mohd Azwardi Bin Md. Isa2
¹Department of International Business, Universiti Utara Malaysia, Malaysia (This email address is being protected from spambots. You need JavaScript enabled to view it.)
2Department of International Business, Universiti Utara Malaysia, Malaysia (This email address is being protected from spambots. You need JavaScript enabled to view it.)

ABSTRACT

In reality, the first “large step” of internationalisation is securing the abundance of resources, which is essential for the adjustment to internationalisation environments and a massive step in a firm’s business cycle. This study highlights the elements of firm resources management, which determines Malaysian SMEs’ internationalisation strategies. This study used the purposive sampling to select 860 SMEs listed in the Federation of Manufacturing Companies (FMM) directory. The PLS 3.0 software was used to test the significance of the relationship between the proposed constructs. Findings indicate that the proper management of a firm’s resources contributes to the realisation of internationalisation strategies. Furthermore, suitable strategies could help firms avoid failure during business operations. Findings also imply the immediate need to understand the role of firm resources in aligning the appropriate internationalisation strategies.

Keywords: Firm resources; internationalization strategies; SMEs