The Development of MSMEs International Networks through Internationalization

• Main Author: Kaukab M. Elfan
• Format: Article
• Language: English
• Published: EDP Sciences 2020-01-01
• Series: SHS Web of Conferences
• Online Access: https://www.shs-conferences.org/articles/shsconf/pdf/2020/14/shsconf_icore2020_01022.pdf

This article studies the effects of relationship bonding, entrepreneurial cognition, and market dynamism towards internationalization and their impacts in MSMEs network growth. This article examines hypotheses derived from theory and research employing structural model analysis in 150 exporting-MSMEs in Central Java province, Indonesia. This research reveals that relationship bonding influences internationalization while entrepreneurial cognition and market dynamism do not. Internationalization affects the MSMEs network growth. This leads to the finding that MSMEs internationalization in Central Java, Indonesia is promoted more by social factors instead of individual and macro environment, while network growth is stimulated by individual and macro environment instead of social factors. Social determinant directs internationalization and individual and macro determinant regulates network expansion. The implementation of network theory and ecosystem management theory to comprehend MSMEs internationalization and network growth. This research provides supports to encourage educators and policy makers upgrade the skills of MSMEs practitioners in developing international business. This research compares social perspective, individual perspective, and macro environment in an empirical study in a developing country. This research offers solution to comprehend internationalization and network growth involving market dynamism and entrepreneurial cognition as well as bonding relationship as determinants.