The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs

Increased globalisation around the world has created a globalised market and integrated world economy across different industries and firms, eventually increasing competition. As a survival strategy, SMEs start to be more active in their local market and expand their activities into international ma...

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Main Author: Ripin, Ummu Aiman
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2022
Online Access:https://eprints.nottingham.ac.uk/68137/
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author Ripin, Ummu Aiman
author_facet Ripin, Ummu Aiman
author_sort Ripin, Ummu Aiman
building Nottingham Research Data Repository
collection Online Access
description Increased globalisation around the world has created a globalised market and integrated world economy across different industries and firms, eventually increasing competition. As a survival strategy, SMEs start to be more active in their local market and expand their activities into international market. Going international also suggest the additional elements that SMEs need to overcome which is the cultural differences between home and host country. When moving to a foreign market, firms must understand the market’s culture before making decision on entry mode strategy. This can mean its language, religion, norms and so on. This dissertation identify to what extent does cultural differences influence the entry mode strategy of SMEs from Southeast Asia. This is done through obtaining primary data from interviews with the SMEs and secondary data from literature regarding the topic. Although the topic has been studied over the past years, no specific study has been performed on the specific region of Southeast Asia(Nohria and Eccles, 1993; Hickman and Haxhi, 2014; Decker, 2019). The Uppsala model and Network approach were used to observe the internationalisation process of SMEs which is compared to Hofstede’s cultural dimension that were used as predictor of cultural distance. The aim is to identify how cultural differences have affected the entry mode decision making of the SME and their willingness to take risks.
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spelling nottingham-681372023-04-28T09:21:51Z https://eprints.nottingham.ac.uk/68137/ The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs Ripin, Ummu Aiman Increased globalisation around the world has created a globalised market and integrated world economy across different industries and firms, eventually increasing competition. As a survival strategy, SMEs start to be more active in their local market and expand their activities into international market. Going international also suggest the additional elements that SMEs need to overcome which is the cultural differences between home and host country. When moving to a foreign market, firms must understand the market’s culture before making decision on entry mode strategy. This can mean its language, religion, norms and so on. This dissertation identify to what extent does cultural differences influence the entry mode strategy of SMEs from Southeast Asia. This is done through obtaining primary data from interviews with the SMEs and secondary data from literature regarding the topic. Although the topic has been studied over the past years, no specific study has been performed on the specific region of Southeast Asia(Nohria and Eccles, 1993; Hickman and Haxhi, 2014; Decker, 2019). The Uppsala model and Network approach were used to observe the internationalisation process of SMEs which is compared to Hofstede’s cultural dimension that were used as predictor of cultural distance. The aim is to identify how cultural differences have affected the entry mode decision making of the SME and their willingness to take risks. 2022-03-10 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/68137/1/0124686DISS.pdf Ripin, Ummu Aiman (2022) The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs. [Dissertation (University of Nottingham only)]
spellingShingle Ripin, Ummu Aiman
The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs
title The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs
title_full The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs
title_fullStr The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs
title_full_unstemmed The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs
title_short The effects of cultural differences on SMEs entry mode selection: Evidence from the Southeast Asian SMEs
title_sort effects of cultural differences on smes entry mode selection: evidence from the southeast asian smes
url https://eprints.nottingham.ac.uk/68137/