MANAGEMENT AND ACCOUNTING REVIEW

 


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Volume 17 No. 3, December 2018

 

ARTICLE INFO
Article History:
Received: 17 April 2018
Accepted: 27 June 2018
Available online: 31 December 2018

MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 17 NO 3, DECEMBER 2018

Firm’s Readiness for Internationalization

Herwina Rosnana, Nuraisyah Chua Abdullaha, Norzayana Yusofa and Muhammad Syukri Abdullaha
aUniversiti Teknologi MARA, Malaysia

ABSTRACT
This study addresses primary issues on internationalisation readiness among Small and Medium Enterprises (SMEs). Four factors namely foreign distribution, foreign marketing, foreign network and entry strategy are examined to help in enhancing the understanding on readiness for internationalization among SMEs. The main purpose of this paper is to examine the impact of these exogenous variables on readiness for internationalization among SMEs in Malaysia. The methodology utilized primary data from questionnaires which were administered to a sample of 190 SMEs in Malaysia. These self-administered questionnaires were distributed using the purposive sampling technique. Descriptive statistics, Internal Consistency - Composite Reliability (CR), Indicator Reliability – Indicator Loadings, Average Variance Extracted (AVE) (Convergent Validity), Fornell Larcker Criterion Discriminant Validity), Standard Beta, T-value, Effect Size (f2) and R Square were employed. Analysis used the Smart Partial Least Square (SmartPLS) path model. The results show that all factors were significantly correlated to Readiness for Internationalization. Further, this paper offers discussions and conclusions.

Keywords: Readiness, Internationalization, SMEs, Smart PLS

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