The purpose of this research has been to look into whether globalization is a good or bad thing with SMEs in head. The literature reappraisal together with the qualitative research has identified cardinal issues refering SMEs and globalization. The findings from this research survey does non merely confirm that SMEs have both the possible and capableness to come in international markets successfully, but it besides provides replies and penetrations into how they overcome the restraints of size ( which some SMEs find restrictive ) and set up an international market scheme.
The research besides identified the types of challenges faced by these houses as they internationalised their concerns which were non needfully restricted either to SMEs or specifically to the procedure of internationalization. It could be argued that the ability and capableness to cover with such challenges during the initial phases to being dealt with on a routinely footing marks the success of the concern. The acceptance of a niche scheme by one of the houses was of import as finance and resources became restraining. The research shows that these factors have played an of import function in both the internationalised companies although they are both in two different industry sectors. With the negative impacts faced by both houses, it can be argued that both houses are able to go on runing successfully which reflects the houses holding experienced and competent entrepreneurial behavior.
Another factor that found in the research was the fact that both houses maintained a balance between their existing merchandises and channels and the chances being sought in the international market topographic point. From the research it may be accepted that although these houses had limited resources, they were able to easy widen their operations abroad. As a consequence it can be deduced that when a new planetary enterprise appears indispensable, in the instance of Zarlink and exciting, in the instance of IAC, little houses can and make hold the inclination to easy widen their operations. Besides there exists the enticement to pull resources indispensable to guarantee smooth running of the operations, like in the instance of IAC by spread outing their fabrication capacity or by safeguarding in the operations in the place market, as seen from Zarlink, although widening operations and markets presents its ain hazards.
Another factor that emerged from the survey is that these houses went planetary as a consequence of seeing globalization as a natural extension and a growing scheme on the dorsum of successful and solid place markets. However, none of the researched houses saw traveling international as the lone manner of keeping gross revenues because their place markets is falling as stated by some theoreticians.
It can be argued that although these houses were faced with challenges they managed to internationalize successfully due to their engagements in networking/clustering. The literature reappraisal shows the benefits of set uping webs as an efficient tool for get the better ofing the size restrictions of SMEs and this is reflected in the findings presented in chapter four. This stems from the research that being competitory in today ‘s planetary market means that the house had the ability to successfully asseverate itself in the domestic and planetary market. This has been shown that fight is the root of entrepreneurial activity adopted by a house that shows the enterprise to take good hazards, know-how, direction accomplishments to advert a few. This research has shown that authorities has a polar function to play in advancing bunch attack. However, it may be suggested that authorities ‘s engagement relates specifically to incremental invention of companies instead than on extremist invention excessively. It can be argued that through networking and globalization houses are pushed and pulled towards higher specialization, invention and cognition transportation to stay competitory which may besides assist cut down costs and significantly increase the fight of the house as seen in the instance of Zarlink and IAC.
Management ‘s ability to show entrepreneurial behavior was shown to be of import factor in internationalization every bit good as inspire and actuate their employees towards improved capableness. Globalisation, alterations to engineering every bit good as de-regulations poses new challenges that can non be met if administrations lack the capableness of adept directors to undertake such issues.
It was found from the research that both the ability to web and the international experience and concern accomplishments of determination shapers appeared to be important in act uponing non merely the motivations to spread out, but besides the procedure and schemes of foreign concern development. It can besides be argued that the qualities held by direction with the combination of the enterpriser and positive attitude held by direction towards internationalization despite the hazards involve play a important function.
It can be deduced from the research that there is a close relationship between the features of the decision-makers and the disposition to originate and prosecute international activity. The attitudes and motives of determination shapers in SMEs determine the way and gait of internationalization. The determination was influenced by a figure of factors such as the resource-based position of the house. This was found to be of import whereby director ‘s cognition of issues associated with the industry, for illustration, demand features and competitory schemes, through to their ain house ‘s capablenesss played a important function in arranging their scheme into internationalization. This research besides found that SMEs face critical issues of how to make and keep a sustainable competitory advantage in the visible radiation of the increased complexness of international trades and linkages between houses. The of import facet of this research was how these houses are able to react to the force per unit areas of trade release and an addition in international competition. It was found that domestic markets no longer keep as a preserve of autochthonal companies since they are invariably under onslaughts from abroad rivals. As a consequence the traditional beginning of strength has become the primary beginning of failing when trying to vie in foreign markets.
For this ground it can be argued that the deductions for directors at Shine are that they need to be cognizant of the motives, timing, coherency, concern webs and internationalization and its procedures. It can besides be said that the mental theoretical accounts they have about trading internationally could besides be their chief barriers to internationalisation aside all other challenges. As Chetty and Campbell-Hunt ( 2003 ) stated directors need to cognize that internationalization is non merely a forward patterned advance but that de-internationalisation is an of import characteristic of internationalization procedure.
The research identified different types of challenges faced by these houses as the internationalised their concerns which was non needfully restricted the procedure of internationalization but besides to domestic houses. It can be argued that the ability and capableness to cover with such challenges marks the success of the concern as holding competent entrepreneurial ability. Therefore the acceptance of a niche scheme by Zarlink was of import as finance and resources became a restriction. The research shows that these restrictions played a important function in both international companies although they are both in two different industry sectors. Another factor found in this research is that both houses maintained a balance between their existing merchandises and channels and the chances being sought in the international market topographic point. Although these houses had limited resources, they were able to widen which can be categorised as when a new planetary enterprise appears indispensable in the instance of Zarlink and exciting in the instance of IAC little houses can easy widen their operations. Traveling international besides comes with enticements to pull resources indispensable to guarantee smooth running of the operations. For illustration, in the instance of IAC, spread outing their fabrication capacity across boundary line or by safeguarding their fabrication in the place state presents its ain hazards. Again from the research, both houses went international as a consequence of seeing globalization as a natural extension and growing in add-on to their profitable domestic market. However, none of the researched houses saw traveling international as the lone manner of keeping gross revenues because place markets was falling as asserted by come theoreticians.
Networking besides played a function in this research survey whereby through this houses were able to increase their possible for developing the opportunities by cognizing the right people who were placed to go through on information whether it was through concern spouses, providers, or though governmental bureaus. The literature besides showed that the benefits of set uping webs as an efficient tool for get the better ofing the size restrictions faced by SMEs. The house ‘s experience and capablenesss in organizing relationships, its pick of spouses and committedness to these spouses emerged as of import determiners of how these relationships influenced the both house ‘s internationalization schemes.
It can be deduced from the whole research that the benefits of globalization exists for SMEs. Although there is a figure of effects of globalization upon SMEs some provide chances whilst others present menaces. For the researched companies globalization means large markets with large chances every bit good as immense costs. Besides globalization nowadayss to SMEs high competition from both the domestic market and planetary markets every bit good as nowadayss the chance for SMEs to increase their graduated table and range. Globalisation besides presents SMEs with a wider scope of client demands than domestic market can offer and at the same clip it presents to SMEs raised client outlooks in many markets states which must be met with quality, service and monetary value. Firms may besides profit economic systems of graduated table as it will enable them to distribute their fixed costs over a larger volume of end product and cut down end product costs. However, it a little house is a provider to a larger house, the larger house is likely to exert power over the little house to profit from reduced cost. Another job is that when successful the market may usually be acquired by larger administrations as consequence go forthing SMEs no longer agile advanced SMEs.
Therefore, for globalization to be good, SMEs need to be more advanced than planetary administrations to vie and be more competitory. It may be suggested that SMEs seek niche market as they may be able to support that market easy.
It can be summarised that for those houses who have the resources to travel planetary coupled with uninterrupted invention managerial capablenesss and accomplishments may see globalization as a good thing, contrary to that, those houses with no resources, capablenesss and market distinction may see globalization as against them.