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Impact of Entrepreneurial Orientation and Network Resource Utilization on Internationalization of SME¡¯s: Evidence from Pakistan

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  • Muhammad Imran Hanif
  • Madiha Irshad

Abstract

The purpose of this study is to examine the importance of implementation of strong entrepreneurial orientation and utilization of network resources creating value added products for the internationalization of Small and Medium Enterprises in Pakistan. The objective is to investigate and evaluate the nature of the business, then to determine the importance of implementation of entrepreneurial orientation and utilization of network resources for the internationalization of small and medium sized enterprises in Pakistan. It is proposed that the intensity of internationalization of small and medium sized enterprises is enhanced by development of organizational practices and cultural environment. An overview is provided of the importance of SME sector in Pakistan for the economic growth of the country. The current state of SME sector has been evaluated. It proceeds with the discussion of the factors essential for fostering the growth of SME¡¯s in Pakistan. The importance of these factors such as strong entrepreneurial orientation and utilization of network resources has also been considered for the internationalization of small and medium sized enterprises in Pakistan. The paper concludes with the assessments of implications of these factors and suggestions for future research. Information is provided regarding the current situation of SME¡¯s in Pakistan and the factors for the international growth of this sector have also been identified and studied. Factors under consideration are strong entrepreneurial orientation and utilization of network resources. Few hypotheses made regarding the implication of these factors have been evaluated and tested by several statistical methods. For the internationalization of SME¡¯s in Pakistan these factors have been given special attention. In the industrial development of a country the importance of the SME sector cannot be ignored. SMEs constitute nearly 90% of all the enterprises in Pakistan; employ 80% of the non-agricultural labor force; and their share in the annual GDP is 40%, approximately. However, Pakistan Small and Medium Enterprises sector is facing many problems and challenges both domestic and international in achieving economics of scale and better prospects in marketing their products at international market and to gain the competitive advantage. Demand of the global era requires entrepreneurs who are willing to face risks, innovative, proactive and compete aggressively to be able to seek new opportunities and increase competition advantages. Innovation is needed to provide value added products through value creation, so that the competitive advantage could be gained. Entrepreneurs can utilize open source that involves external parties by utilizing network resources. This paper calls attention to ways in which SME¡¯s of Pakistan can survive in this competitive environment. This paper investigates the chief factors for the internationalization of SME¡¯s of Pakistan specifically focusing on the entrepreneurial orientation determinants such as pro-activeness, risk taking and competitive aggressiveness and utilization of network resources.

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  • Muhammad Imran Hanif & Madiha Irshad, 2018. "Impact of Entrepreneurial Orientation and Network Resource Utilization on Internationalization of SME¡¯s: Evidence from Pakistan," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(2), pages 118-131, June.
    • Handle: RePEc:ibn:ijmsjn:v:10:y:2018:i:2:p:118-131
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    Cited by:

    1. Rizwan Ullah Khan & Arshad Mahmood & Mohammed Ahmed & Makwan Jamil Mustafa & Mohammad Khamis Alshamsi & Qaisar Iqbal & Yashar Salamzadeh, 2021. "Impact of network structure on sustainable competitive performance among Pakistani small and medium enterprises: does government financial support matter?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 579-591, December.
    2. Asem Alkahtani & Norfarah Nordin & Rizwan Ullah Khan, 2020. "Does government support enhance the relation between networking structure and sustainable competitive performance among SMEs?," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-16, December.

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    More about this item

    Keywords

    entrepreneurial orientation; network resources utilization; internationalization; small and medium sized enterprises; Pakistan; pro-activeness; risk taking; competitive aggressiveness;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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