Internationalization of small and medium-sized enterprises related to their dynamic suppy chain flexibilities

Abstract

During the last two decades, the internationalization of small and medium-sized enterprises (SMEs) has called the attention of policymakers, practitioners, and scholars due to their role in the economic growth and job creation in their nations. However, due to the complexity and uncertainty of international environments, internationalization has become a high-risk strategy to be embraced. In contrast, flexibility is one of the largest recognized capabilities of SMEs which has been used by these firms to overcome their lack of resources and poor capabilities. This capability leads to a closer link to customers and suppliers allowing at the same time a faster response to both sides. In addition, SMEs need to adopt a network orientation to cope with the nowadays supply-chain competitive scenario. Hence, manufacturing SMEs require a sustainable competitive advantage to enhance their internationalization considering an integrative perspective. This paper addresses this gap by providing an integrative model to investigate the implementation of supply chain flexibility (SCF) to sustain SMEs internationalization by adopting a multi-disciplinary perspective. Three areas of study are included in this paper, i.e. SMEs internationalization, SCF, and logistics capabilities. The paper is among the first on providing an understanding of the relationships between these areas and their impact on manufacturing SMEs internationalization process. It also provides critical elements to support manufacturing SMEs internationalization in their decision-making process with respect to SCF as a source of sustainable competitive advantage.