Paper Title :Jordanian Small and Medium Enterprises (SMEs) Barriers to Enter into Foreign Markets
Author :Sultan 'Mohammadsaid' Sultan Freihat
Article Citation :Sultan 'Mohammadsaid' Sultan Freihat ,
(2017 ) " Jordanian Small and Medium Enterprises (SMEs) Barriers to Enter into Foreign Markets " ,
International Journal of Management and Applied Science (IJMAS) ,
pp. 16-19,
Volume-3,Issue-9
Abstract : The study identified the key barriers that confront Jordanian SMEs to inter into foreign markets. A field study
was conducted to collect data from a sample of (60) SMEs foreign trade units, represent Jordanian SMEs, engaged in
exporting into foreign markets, or strive to enter into those markets. The most important findings were: language difference
between home and host country, difference in social approaches between home and host country, insufficient R&D
investments, legal procedural complexity in the home country, lack of express service within the home economy, corruption
in the home economy have a significant effect on Jordanian SMEs entry into foreign markets. At individual institutional
barrier level, the difference in social approaches is the most important barrier for Jordanian SMEs, followed by legal
procedural complexity. The findings of the paper correspond with previous research findings on legal procedural complexity
in the home country, differences in social approach between participating firms also increase complexity in the exporting
process and hence, affect entry into foreign markets, language barriers indicate lower language ability of home firm
communication flow with its foreign parallel one. Lack of express service within the home economy, corruption, R&D
investments are also work as constraints to SMEs entry into foreign markets. Researcher presented a set of
recommendations, the most important ones were: Investing and supporting Jordanian SMEs more actively is the most
realistic strategy as the country, as many other emerging countries, suffer from an inadequate supply of capital to support
growth of larger industries. Jordanian SMEs owners and managers needed to be responsive about the different entry modes
available to firms in the context of the operating environment. The policymakers along with other stakeholders should
address and support Jordanian SMEs to overcome those barriers, and facilitate a smooth internationalization process to
ensure the expected pace of national development. The identification of barriers that confront Jordanian SMEs to enter into a
foreign market is important, since they, like most other SMEs in an emerging economy, cannot undertake independent
research considering resource limitation, therefore, Jordanian government along with other formal authorities should
undertake and finance this independent research.
Keywords - Market entry, SMEs, barriers, Emerging economy.
Type : Research paper
Published : Volume-3,Issue-9
DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-9477
View Here
Copyright: © Institute of Research and Journals
|
|
| |
|
PDF |
| |
Viewed - 57 |
| |
Published on 2017-11-24 |
|