The effects of cultural dimensions, government regulations and entrepreneurial orientation on firms’ international performance: A study of SMEs in Malaysia

Chew, Tze Cheng (2018) The effects of cultural dimensions, government regulations and entrepreneurial orientation on firms’ international performance: A study of SMEs in Malaysia. PhD thesis, University of Glasgow.

Abstract

This research advances an integrative approach to examining the complex interplays
between various internal and external determinants to the firm, in order to provide a fuller
understanding of the international performance of firms. Specifically, this research aims to
enrich our understanding of the role of entrepreneurial orientation (EO) in driving the
international performance of small- and medium-sized enterprises (SMEs). For this
purpose, the research integrates the resource-based view (RBV) with the institutional
perspective to explicate the dynamic interactions among EO - a core firm-specific resource
- and two institutional factors, i.e. cultural dimensions and government regulations in
explaining the international performance of SMEs.

The research conceptualises and examines four core sets of associations that relate to: i)
EO and international performance of firms; ii) cultural dimensions and EO; iii) government
regulations on the association between EO and international performance; and iv)
government regulations on the association between cultural dimensions and EO. The study
employed a quantitative research method and conducted a large-scale, self-administered
questionnaire survey in Malaysia. The statistical analysis of data of 203 internationalised
SMEs confirms the positive impact of EO on the firms’ international performance.
Moreover, analyses provide evidence of the association of cultural dimensions of high
individualism, high masculinity and low uncertainty avoidance with EO; and of the
premise that government regulations positively moderate the individualism-EO and
masculinity-EO relationships.

The incorporation of the RBV and the institutional perspective offers a fuller explanation
of the international performance of SMEs. Specifically, it advances understanding of the
importance of EO - a critical resource for firms, whose manifestation and strength are
influenced by institutional factors - in the internationalisation of firms. The research also
contributes to the institutional perspective in two ways. First, the focus on the macro institutional factors based on a micro perspective reflected through the perception of the key decision-maker advances the understanding of the entrepreneurship phenomenon. It
explains that how firms perceive and respond to the institutional context within which they
are embedded will, in turn, prompt the responding entrepreneurial behaviours and
subsequently affect international performance. Second, it explicates the interacting and
reinforcing effect of cultural dimensions and government regulations, which are an
informal and a formal component of institutions, on the genesis of EO. Significant
practical implications are derived accordingly for business practitioners and policy makers
to promote SMEs’ international business development and growth.

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Keywords: International performance, SMEs, internationalisation, entrepreneurial orientation, institutional perspective.
• Subjects: H Social Sciences > HB Economic Theory; H Social Sciences > HF Commerce
• Colleges/Schools: College of Social Sciences > Adam Smith Business School > Management
• Supervisor's Name: Dimitratos, Dr. Pavlos
• Date of Award: 2018
• Depositing User: Ms Tze Cheng Chew
• Unique ID: glathesis:2018-8663
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 11 Jan 2018 13:22
• Last Modified: 27 Jul 2022 14:06
• URI: https://theses.gla.ac.uk/id/eprint/8663