ABSTRACT
This paper is concerned with the learning needs ofmanagers in SMEs that seek to become progres-sively international. A particular focus of attentionis the informal learning practices that occur withinthe economic and social networks utilised by man-agers in this sector. Using both qualitative andquantitative approaches to data collection, thepaper investigates the challenges perceived by man-agers engaged (or seeking to engage) in interna-tional activity. The results suggest three main areasof challenge: first, the early ‘pre-internationalisa-tion’ stage, when decisions about ‘whether’,‘where’ or ‘how’ to internationalise are taken; sec-ondly, the development of longer-term planningprocesses and business systems to cope with the con-sequences of the initial internationalisation decision;thirdly, the challenge of regulatory issues and theneed to secure payment and manage foreign inter-mediaries. Further areas of learning need, whichdepend on the significance of international businessfor the firm, are also indicated. Existing structures,cultures and approaches to management can bemaintained for many SMEs that undertake somelimited international activity. Where internationalbusiness is a more important factor, however, man-agers need to develop cultural appreciation andempathy to underpin their expertise and consolidatetheir market position. Indeed, sustained interna-tional development may require a significant re-orienting of the business, underpinned by manage-ment and organisational learning to develop anappropriate international ‘mind-set’ that supportsthe effective development of relationships with sta-keholders in different countries.
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MANAGERIAL AND POLICY IMPLICATIONS.
Management learning in SMEs frequentlyoccurs in an informal and often unplanned waythrough a process of interaction within socialand business networks.. Decision makers are not fully aware of the dif-ferent methods of internationalisation that theymight consider when evaluating ‘whether’,‘when’ and ‘how’ to internationalise.. State-provided services of advice and supportfor internationalising SMEs in the UK focusprimarily on regulatory, technical and proce-dural issues. Although these issues are of crucialimportance, managers learn how to managethem through their informal business networks..
The transition from limited internationalengagement to a position whereby internationalbusiness is a significant component of an SME’sactivity requires a process of management andorganisational learning to manage cross-culturalsituations and to establish an international‘mind-set’ within the company as a whole. Thiselement of learning is unlikely to be anticipatedduring the initial stages of internationalisationand is not covered in the official support net-works for SMEs..
State-provided sources of advice and supportare, therefore, of partial relevance for SMEsthat wish to maintain only a limited level ofinternational activity.
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