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The Role of Network Ties on SMEs Internationalization Process in the Developing Countries/Emerging Markets: A Comparison between Mongolia, China, and Malaysia

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  • Ulziimaa Altnaa
  • Laszlo Vasa
  • Gyorgy Ivan Neszmelyi

Abstract

Purpose: The paper aims to investigate the role of all types of networking on SMEs' internationalization process in general. Then, to compare SMEs' networking approaches in the selected three countries and their main differences in terms of network creation and operation. Finally, to report effective SMEs' internationalization practices in Malaysia and China, which should be adopted in Mongolia. Approach/Methodology/Design: The study is descriptive and used secondary data as the primary source. We concluded institutional networking substituted by the social and business networking ties in developing countries such as China, Malaysia, and Mongolia. Findings: These SMEs rely heavily on the information collected by the personal channels to bring about both pros and cons for their internationalization process. Secondly, the policymakers should establish the private specialized firms or export agencies established in Malaysia and China a long time ago to address information and knowledge barriers faced by SMEs in Mongolia. Practical Implications: The first implication is SME managers or owners in developing countries prefer to have strong social relationships with actors, which help them to receive some benefits and accelerate their internationalization process, but it results in neglecting institutional networking some crucial roles.

Suggested Citation

  • Ulziimaa Altnaa & Laszlo Vasa & Gyorgy Ivan Neszmelyi, 2021. "The Role of Network Ties on SMEs Internationalization Process in the Developing Countries/Emerging Markets: A Comparison between Mongolia, China, and Malaysia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 274-291.
  • Handle: RePEc:ers:ijebaa:v:ix:y:2021:i:1:p:274-291
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    More about this item

    Keywords

    Network ties; Small and Medium-Sized Enterprises (SMEs); internationalization; Malaysia; China; Mongolia.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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