Outward Internationalization of Emerging Market Small & Medium Sized Enterprises: Influences of Contract Manufacturing Relationship with Developed Market Multinational Enterprises and Firm Learning

SEAN NAUGHTON, AHMAD ARSLAN, Abdollah Tabas, Vesa Puhakka

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Abstract

The current chapter conceptually addresses outward internationalisation of small and medium sized enterprises (SMEs) from Emerging Markets (EMs) by focusing on the role of prior contract manufacturing relationships with a developed market multinational enterprise (DMNE). The internationalisation of SMEs from EMs is an under-researched area and the role of contract manufacturing experience specifically has not been addressed in prior studies. Based on a literature review, we identified four capabilities developed by EM SMEs during their contract manufacturing relationships with DMNE(s) that potentially help in later outward internationalisation. We incorporate insights from dynamic capabilities theory, and develop propositions addressing the role of relational capital, human capital, manufacturing productivity capabilities and product innovation capabilities in this specific context. Despite being conceptual in nature, our paper is one of the first to specifically highlight the role of these specific capabilities developed during contract manufacturing relationship for outward internationalisation, setting bases for future studies to further empirically investigate them in different contexts.
Original languageEnglish
Title of host publicationContemporary Issues in Entrepreneurship Research book series (Emerald): Volume 10 - International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants
EditorsPaul Jones, Mohamed Haddoud, Adah-Kole Onjewu
PublisherEmerald
Chapter5
Number of pages20
Volume10
ISBN (Electronic)978-1-78769-563-4
ISBN (Print)978-1-78769-564-1
Publication statusPublished - 13 Nov 2019

Keywords

  • Contract Manufacturing
  • Emerging Market
  • Human Capital
  • Manufacturing Productivity
  • Product Innovation and Relational Capital

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    NAUGHTON, SEAN., ARSLAN, AHMAD., Tabas, A., & Puhakka, V. (2019). Outward Internationalization of Emerging Market Small & Medium Sized Enterprises: Influences of Contract Manufacturing Relationship with Developed Market Multinational Enterprises and Firm Learning. In P. Jones, M. Haddoud, & A-K. Onjewu (Eds.), Contemporary Issues in Entrepreneurship Research book series (Emerald): Volume 10 - International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants (Vol. 10). Emerald.