An Dilemmas for SMEs Establishment on an International Basis

Muhammad Yasir Imam, Noor Un Nisa, Gul Sher Khan and Asima Saleem
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Muhammad Yasir Imam: Alhamd Islamic University Bhara Kahu, Pakistan
Noor Un Nisa: Bathspa University, Ras al khaimah, UAE
Gul Sher Khan: GC University Faisalabad, Pakistan
Asima Saleem: NUML University, Islamabad, Pakiatan

International Journal of Business and Economic Affairs (IJBEA), 2020, vol. 5, issue 3, 91-102

Abstract: The purpose of the study is to give a theoretical frame-work for the internationalization of SMEs, and efforts are being made to identify the factors that influence the state of SMEs internationally in the Pakistan. Due to lack of global mindset, organizational resources utilization, general capabilities, management experience, dynamics of international markets, and regulatory frameworks, family-owned businesses are less likely to maintain their share of international markets while developing countries by focusing on the SMEs of internationalization, as like Pakistan. SMEs from the Pakistan are focusing on traditional samples and are still not able to gain a significant share in international markets, but are losing their shares in international markets. Most SMEs in Pakistan have been owned families and also operated by these for decades. With the appearance of the financial integration, SMEs are moving beyond borders and also gaining the market share in the overseas markets. SMEs earn more profit by selling products in the international markets and contribute significantly to Pakistan’s economic growth. For the establishment of State Internationalization, the Evidence Based Study is utilized to determine the suspects facing SMES. The literature on firms’ globalization is primarily based on the research from all South Asia and other countries. This framework identifies potential factors which affecting the performance of Pakistan owned-family SMEs in international markets. The SMEs require to revise their processes strategies, and also operations to reach the approach for desired level of market share in the international markets.

Keywords: Globalization; SMEs; Problems and challenges; Global mindset; Organizational resources; Competitive advantage; Regulatory framework; Administrative experience (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aya:ijbeaa:2020:p:91-102

DOI: 10.24088/IJBEA-2020-53001

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