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Success and failure factors for SME's going abroad
University of Skövde, School of Technology and Society.ORCID iD: 0000-0001-5418-6785
2009 (English)In: Modern Management Research Conference (MMRC): Insights into the sustainable growth of business / [ed] Rolv Petter Amdam, Petras Barsauskas, Alfredas Chmieliauskas, Virginijus Kundrotas, Asta Pundziene, University of Management and Economics, Kaunas , 2009Conference paper, Published paper (Refereed)
Abstract [en]

Purpose:  This  comparative  case  study  seeks  to  describe  success  and  failure  factors  for  SMEs  starting  up  export/import  and production in another country with very limited financial and human resources. Design/methodology/approach:  Two  cases  of  business  projects  that  describe  Swedish  SMEs  that  started  up  export/import  in Lithuania.  Case  study  units  were  identified  in  personal  communication.  The  criteria  for  selecting  these  SMEs  were  that  they  had some products or ideas that could be of interest for other markets and that they also needed some kind of production or network in other countries for being able to develop their companies. The model of success/failure factors is connected to those studies and gives some examples of ways of making growth in a SME. The primary study collects answers from direct project with match making in Lithuania  and  after  that  deep  interviews  and  meetings  for  following  up.  Secondary  study  has  been  added  from  other  studies  and articles. The study is longitudinal and the process for developing the company for being able to enter new markets is described in this study.  Findings: The findings in the comparative case study suggests that the main reason micro SMEs can grow in a new market is relying of  the  creativity  of  the  owner,  networking,    connection  between  consultant,  company  ownership  and  insight  of  lowering  costs concerning  logistics  and  production.    Illustrations  show  the  network  and  strategies  for  handling  marketing  failures.  For  micro companies the contact in personal level seems to be important for push the process further on. That means that its not only straight business models that can be used but kind of hybrid of business models with personal impact models that makes business running. The lack of big investments cause of course problems for development in large scale but in micro companies the limitations is not connected  with  money  but  in  ideas  of  finding  new  ways  of  produce,  how  to  organize  logistics  and  how  to  keep  contact  with  the network.  Research  limitations:  The  material  in  the  comparative  case  study  provide  solid  grounds  for  analyzing  the  study  units  and  the conclusions  are  transferable  for  the  reader  with  a  contextual  understanding.  More  general  conclusions  would  require  continued studies where the case selection is randomized.  Practical Implications: This case study can help SMEs to understand the difficulties in going abroad. Those cases show that there is emerging markets close in the northern part of Europe that can be developed for practical exchange for growth. Originality/Value: To show examples from SMEs that seldom take place in the discussion about how to manage export/import since they are considered to small to even think of that as a growth possibility. To gain sustainable growth in micro enterprises there should be more focus on helping the entrepreneur since that can be the most possible way of producing growth in terms of entering new markets,  finding  new  networks,  buying  more  smart  from  sub  contractors  abroad,  finding  new  segments  for  products  and  also investments for developing the business. Without people that have ideas and courage to push the ideas further there would be no banks, insurance companies etc since the main point in my discussion is that the entrepreneur with the ideas no one else have  been developed is the engine in the business growth. Its not always of course connected or correlated with success in selling since other companies  can  come  and  take  over  the  ideas.    If  the  entrepreneur  can  be  helped  further  on  with  network,  practical  help  with translation,  finding  right  contacts  and  how  to  understand  the  culture  –  there  would  be  much  growth  possibilities  in  even  micro companies that are relying on one person only with ideas and knowledge about the products. A model for this possible interaction between b2b and also personal contacts is presented as a suggested model for showing how that could be done. 

Place, publisher, year, edition, pages
University of Management and Economics, Kaunas , 2009.
Keywords [en]
Critical Success/failure factors, entrepreneurs, network, business process change, business owner
National Category
Social Sciences
Research subject
Humanities and Social sciences
Identifiers
URN: urn:nbn:se:his:diva-4579OAI: oai:DiVA.org:his-4579DiVA, id: diva2:388670
Conference
Modern Management Research Conference (MMRC), 19-21 November 2009, Vilnius
Available from: 2011-01-18 Created: 2011-01-18 Last updated: 2017-11-27Bibliographically approved

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