The Effects of Cultural Dimensions, Government Regulations and Entrepreneurial Orientation on Firms’ International Performance: A Study of SMEs in Malaysia

Chew, T. C., Tang, Y. K. , Dimitratos, P. and Buck, T. (2017) The Effects of Cultural Dimensions, Government Regulations and Entrepreneurial Orientation on Firms’ International Performance: A Study of SMEs in Malaysia. 44th Academy of International Business (AIB) Conference UK, Reading, UK, 06-08 Apr 2017.

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Abstract

This research integrates the institutional perspective with international entrepreneurship perspective to provide a fuller understanding of entrepreneurial orientation (EO) as the core explanatory factor of the international performance of small and medium-sized enterprises (SMEs). The institutional perspective posits that the behaviour and strategy of firms are shaped by formal and informal institutions. This research posits that cultural dimensions as a major component of informal institutions have a direct influence on the EO of a firm, and government regulations representing formal institutions moderate the association of cultural dimensions with EO and of EO with international performance. The statistical analysis of survey data of 203 internationalised SMEs from Malaysia confirms the positive impact of EO on international performance. There is strong evidence that cultural dimensions of individualism, masculinity, and uncertainty avoidance are associated with EO and the cultural dimensions-EO association is moderated by government regulations. The findings advance knowledge of key factors influencing SMEs’ international performance by accounting for the interplay among the EO of a firm, cultural dimensions and government regulations. Practical implications for enhancing the international performance of SMEs are derived.

Item Type:Conference or Workshop Item
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Dimitratos, Professor Pavlos and Buck, Professor Trevor and Chew, Tze Cheng and Tang, Dr Yee Kwan
Authors: Chew, T. C., Tang, Y. K., Dimitratos, P., and Buck, T.
College/School:College of Social Sciences > Adam Smith Business School > Management
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