Internationalisation In Malaysia Case Study

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The internationalization of firm has been widely researched for over forty years (Werner, 2000). The factors that contribute to the internationalization of manufacturing SME’s in Malaysia are external factor, internal factor and technological factor. The external factor are the characteristics of home and host markets, as well as the policies of governments at home and abroad, are drivers of international engagement. These characteristics include gravity factors (geographical and cultural distance, size of the domestic and host markets), business and export regulations in the home and host markets, including tax considerations, and quality of transport infrastructure. Surveys among European SMEs reveal that SME export decisions are primarily motivated by the growth and size of the host market in question, combined with a small domestic market size (see Crick 2007b). Home-country characteristics include business and export regulations and export promotion programmes. The lack of domestic governmental assistance/incentives and unfavourable domestic rules and regulations in general (e.g. costs of starting a business) and export regulations in particular can be severe barriers to internationalisation (Leonidou 1995). Export regulations…show more content…
In contrast, management trips overseas are regarded as the least influential factor in decisions to internationalise (Leonidou et al. 2007; Fillis 2008). Managers’ demographic attributes (age, educational level) and personalities/subjective characteristics (attitude towards risk, perception of costs/benefits, commitment) can also affect these decisions. Serra et al. (2012) find that manager education is a key determinant of the propensity to
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