Market Orientation, Government Regulation, Competitive Advantage and Internationalization of SMEs: A Study in Malaysia

The degree of prominence when it comes to SMEs in the economic growth of a country has projected them as a pivotal factor within the recent policy making of each and every country. (Ale Ebrahim et al., 2010). The internationalization of SMEs from developing countries and transition economies has drawn an ever- increasing attention within this contemporary era. (Ibeh & Kasem, 2010). Significantly, manufacturing SMEs are playing an undeniable role in the world markets and Some of the aforementioned SMEs are generating revenues within the international markets which is more than the earning in their domestic market (Chelliah et al., 2010).

While many researchers have focused on understanding the influential factors in internationalization of SMEs (Majocchi et al., 2005; Javajgi & Todd, 2011; Masca, 2012) there is less research addressing the role of the market orientation, competitive advantage and government regulation in the internationalization of SMEs (Mtigwe, 2005; Liu et al., 2011). This study focuses on filling this gap by developing a conceptual framework based on literature review.

The purpose of this research is to extend the literature which addresses the relationship between those influential factors that mentioned and internationalization of SMEs. This article also focuses on competitive advantage that affects the internationalization of SMEs as mediating role between market orientation and government regulation with internationalization of SMEs within the manufacturing sector by conducting a comprehensive review of literature and via survey from CEOs of manufacturing SMEs which are located in the Klang Valley of Malaysia.

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(Author: Akbar Afsharghasemi, Mohamed Zain, Murali Sambasivan, Serene Ng Siew Imm Published by Sciedu Press)