Internationalisation of SMEs: does entrepreneurial orientation matter?, Mohammed Ngoma, Abaho Ernest, Sudi Nangoli and Kusemererwa Christopher
Mohammed Ngoma, Abaho Ernest, Sudi Nangoli, Kusemererwa Christopher
Graduate Studies and Research
Makerere University Business School, Kampala
Purpose: The purpose of this paper is to investigate entrepreneurial orientation (EO) as a predictor of internationalisation of small- and medium-sized enterprises (SMEs). The key research question is “to what extent do the dimensions of EO (innovativeness, proactiveness and risk taking) predict internationalisation of SMEs?”
Design/methodology/approach: The study adopts a cross-sectional survey to collect data from 282 SMEs, with the use of a multi-dimensional self-administered questionnaire. All the measures in this study were adopted from existing instruments from previous studies and all showed a CVI above 0.8. Data were analysed quantitatively using descriptive statistics, correlations and hierarchical regression. The nature and strength of the relationships between the variables was tested using the zero-order bivariate correlation analysis.
Findings: The study establishes a significant relationship between the dimensions of EO and internationalisation of SMEs.
Research limitations/implications: This paper contributes to the corpus of literature on internationalisation of SMEs. Future research should consider the major constructs from a longitudinal point of view given that cross-sectional studies sometimes fail to examine the interaction effect of the variables.
Practical implications: The paper illustrates how EO dimensions can influence an entrepreneur’s decision to go international especially handling the process of internationalisation and its dynamics.
Originality/value: The paper provides contextual evidence from a developing country to the effect that as local investors get more inclined to EO, they in the process ease their way to joining the international business arena.
Keywords: SMEs; Innovativeness; Strategy; Internationalisation; Risk taking; Proactiveness.
Citation: Ngoma, M., Ernest, A., Nangoli, S. and Christopher, K. (2017), "Internationalisation of SMEs: does entrepreneurial orientation matter?", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 13 No. 2, pp. 96-113. https://doi.org/10.1108/WJEMSD-08-2016-0039