Background
‘Born global’ small and medium sized enterprises seem to attract the attention of scholars and business people (Oviatt/McDougall, 1994; Rugman/Wright, 1999). ‘Born global’ SMEs are small, entrepreneurial enterprises that incorporate characteristics of large, multinational enterprises in terms of target markets and international dispersion of value adding activities. To linked from classic internationalization theories, phenomenon of ‘born-global’ SMEs as becoming increasingly common (Rugman and Wright,1999), as related theories explain both internationalization process of SMEs and ICT functions from which business configuration is desirable (Dunning, 1993; Oviatt and McDougall, 1999) upon giving attention on analyzing theories and paradigm that assumes the strategic phenomena of internationalization (Almor, 2000; Almor and Hashai, 2001; Nilsen and Liesch, 2000). The research contribute to the process of internationalization by examining stages of knowledge based ICT SMEs from the large percentage of innovation seen (Korot and Tovstiga, 1999).
Research Problem and Literature Gap
The problems as well as challenges facing ICT exporters, might be on certain assimilation failures from where there lacks of capturing better strategy and influences of ICT development on Australia and Singapore SMEs and the accountability of internationalization strategies towards business functioning of these ICT exporters. There representation of useful assumptions of certain strategies and internationalization processes from research vigor and interest, it is important to differentiate between: 1 - methods appropriate for data collection 2 - as appropriate for data analysis. There can be critical advantage for qualitative data and means that strategic dynamics are able to be view internationalization process of born global ICT SMEs and the applications imposed directly into study essence, linking to growth and expansion strategies that integrates vivid case interpretations of the situation into detailed analysis of theories and knowledge evaluation of Australia and Singapore ICT exporters.
Thus, from within information and communication technology, there can be pressure to globalize international business for a well planned global strategy and be able to realize ICT potentials of Australia and Singapore. There have to decide about global market participation as well as global competitive moves (Yip, 1992 p. 17), in the ICT field the importance of effective growth and expansion strategies should be a must factor. The prevailing knowledge on internationalization as a process focuses on ICT SMEs in phases of internationalization (Melin, 1992 p. 112), globalization process has become of interest to researchers (Luostarinen, 2001; Kirpalani and Luostarinen, 1999).
Despite growing policy and research interest in small firm internationalization, little attention has been focused on the international dimensions of entrepreneurship and even less on the academic formation and professional development of international entrepreneurs. There is the need to address strategical issues as it can be critical in the emergence of born global ICT SMEs of Australia and Singapore, as there have been taking advantage of technological advances to internationalize rapidly within these countries. There explains as well as evaluates approaches that have been adopted to embed growth and expansion as applied for ICT development in Australia and Singapore, recognize business effectiveness from ICT developments of born global SMEs application of the countries mentioned.
Interim Literature
Internationalization can be described as the process of adapting exchange transaction modality to international markets (Calof and Beamish, 1995). Aside, Root (1987) defined entry mode as an institutional arrangement for organizing and conducting international business transaction strategies, such as towards achieving joint ventures and wholly owned SME operations.
Thus, vast internationalization can be possible without an active internationalization, as the high-tech product often is very specialized and the home market is too small in countries as Singapore and Australia. Internalization does not have to be an issue in the founding process among SMEs. In a mature industry, growth and expansion process allows active internationalization as necessary factor in order to expand overseas within stable financial resources. To be able to expand overseas, the ICT exporters of the country must cooperate with players and partners found in networks and ongoing globalisation has made it easy to administer born global strategies for SMEs. However, to succeed with born global strategy it is not enough to have ICT development into a global vision. The one good aim can be to investigate how ICT exporters of Australia and Singapore are utilizing enough growth and expansion strategies and being equipped with good learning for SME formation.
For strategic behavior theory, Casson (1987) showed that firms in global industries use FDI as a preemptive strategy, that is, as a way to protect their domestic markets from foreign competition by waging competition through FDI in the latter’s own market. With its focus on FDI’s and retaliation through the use of such high-commitment modes in the different competitors’ markets, the strategic behavior theory and other theories of global management might not explain very well the processes of SMEs lacking the resources to make such moves. Whether or not the industry is global, is still important to establish in order to explain the reason for the firms’ speed of international expansion. There examines the internationalization process of ‘born global’ ICT SMEs of Australia and Singapore, process is characterized by immediate entry to international markets, and subsequently by increased, gradual commitment to international activities.
Research Significance
The one good research significance can be manifested into theoretical framework as constructed and analyzed within global approaches of ICT strategies for internationalization process of such growth and expansion of ICT exporters in Australia and Singapore. The globalizing internationals are developing towards standardized strategy alternatives and that global product platforms are important for ICT of the two countries. The study will contribute theoretically and strategically for growth and expansion of the global process, as the globalization of international companies has been studied very little and a better understanding of business process is valuable along with detailed analysis during globalization should be considered. Moreover, there can be comparison of outcomes of strategies of globalizing internationals, it could be interesting to extend research from the strategic business unit of ICT ways execution.
Indeed, one interesting way to be aware of ICT phenomenon would be to assume direct observation of global strategy processes within inclusion of ICT into the countries SMEs. Amiably, growth and expansion have to focus on international expansion of SMEs linking from research literature on internationalization of SMEs has challenged both the rate of expansion and the necessity of the home market as the base for launching internationalization. The literature on ‘born globals’, ICT SMEs asserted that the process of internationalization can be much faster than those proposed by conventional internationalization theories and does not necessarily require the strength of business operations to support growth and global expansion.
Research Questions
The main question can be: How will born global SMEs employ international strategies that allow for higher degree of control in significant markets, compared to less important markets?, the need to describe the process of internationalization of small and medium-sized enterprises and to explore the reasons for the differences pacing internationalization of ICT firms and why ‘born global’?
The research have to comprehensive and outcome oriented and research questions play a huge role in understanding organization process of literature study. There is a need to determine what and how and ICT SMEs adopt strategies for growth and international expansion of ICT exporters in Australia and Singapore? And how to execute these strategies into international ICT exporters from SMEs will meet globalization challenges and management of strategies for growth and global expansion?
Furthermore, the study of several cases are intended to allow for better understanding or improved ability to theorize about the concept of internationalization of SMEs. Empirical evidence supports the notion that firms often internationalize by benefiting from what they learn by experience, i.e. their market knowledge increases gradually and uncertainty and risk is reduced over time for each new country. The research then is to review and analyze literature study and secondary information as the area for Singapore and Australia will in need to touched and identify ICT development for SME adaptation and standards formation of internationalization process.
The literature outline can be organized as follows:
Chapter One: Background and overview of ICT and SME’s perspectives on growth and expansion from internationalization process
Chapter Two: In-depth ICT SMEs encounter in Australia and Singapore internationalization process ‘born global’ context along with several suggestions for future ICT SME studies.
Chapter Three: Discussion of relevant theories and its framework and effectiveness mainly, the classic internalization theory and strategic behavior theory. Knowledge learning and implications for research practice and contribution incurring points to achieve effective growth and global expansion strategies
Chapter Four: Critical appraisal and data analysis of several related studies pointing to ICT and the process of internationalization supported and proposed by several proponents linking ICT and SMEs main concepts and paradigms
Chapter 5: Achievable conclusion and recommendations
References
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Almor T.,/Hashai N. (2001). Configurations of International Knowledge-Intensive SMEs: Can the Eclectic Paradigm Provide a Sufficient Theoretical Framework?. Paper present at the European International Business Association Annual conference, Paris
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