A Functional-Structural Analysis of Policies for the Internationalization of Knowledge-based Companies

Document Type : Original Article

Authors

1 PhD in Technology Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Associate Professor, Management and Accounting Faculty, Allameh Tabatabaei University, Tehran, Iran

3 Assistant Professor, Management and Economy Faculty, Science and Research Branch, Islamic Azad University, Tehran, Iran

4 Associate Professor, Management and Economy Faculty, Science and Research Branch, Islamic Azad University, Tehran, Iran

10.22034/jstp.2021.14.3.1382

Abstract

International trade studies, given the limitations of small and medium-sized enterprises to enter international processes, emphasize the need for government support for the internationalization of these firms. The purpose of this article is the pathology of policies adopted to support the internationalization of knowledge-based companies in Iran; To this end, the structural shortcomings of the existing programs and their limitations in addresing the functions of internationalization policy have been examined. The functions of internationalization policy are the processes that must be implemented by policies to support the internationalization of business. The functions used in the analytical framework of this research are identified by reviewing the internationalization experience of business in different countries. The identified functions of internationalization policy are “Providing information, Coordination of initiatives, Human resource development, International networking, Trade facilitation, Funding & reducing business risks, Development of international trade infrastructures, and Special business support”. Thereupon, the internationalization support measures in Iran high-tech sector were analyzed based on function, implementation time, and the executive body of each measure. The results of this study show that internationalization policies over time have been designed and implemented more specifically and with higher participation of the private sector. However, obstacles such as poor cross-sectoral coordination, limited access to international trade infrastructure, and inefficient structures in design and implementation have limited the effectiveness of these policies.
 
 

Keywords


[1] Cuervo-Cazurra, A., and Un, C. A. (2007) Regional Economic Integration and R&D Investment. Research Policy, 36(2), 227-246.
[2] Ruzzier, M., Hisrich, R. D., & Antoncic, B. (2006). SME internationalization research: past, present, and future. Journal of Small Business and Enterprise Development, 13(4), 476-497.
[3] Buckley, P., 2011. Globalization and the global factory. 2nd ed. Leeds: Edward Elgar Publishing.
[4] Knight, G. A., & Liesch, P. W. (2016). Internationalization: From incremental to born global. Journal of World Business, 51(1), 93-102.
[5] Nowinski, W., & Rialp, A. (2013). Drivers and strategies of international new ventures from a Central European transition economy. Journal of East European Management Studies, 18(2), 191-231.
[6] Johanson, J., & Vahlne, J. E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40, 1411–1431.
[7] Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network approach. In Knowledge, networks and power (pp. 111-132). Palgrave Macmillan, London.
[8] Ghazinoori, S., & Radaei, N. (2019). The Framework for STI Policy Programs. Journal of Science & Technology Policy, 11(2), 527-542. {In Persian}.
[9] Hekkert, M. P., Suurs, R. A., Negro, S. O., Kuhlmann, S., & Smits, R. E. (2007). Functions of innovation systems: A new approach for analysing technological change. Technological forecasting and social change, 74(4), 413-432.
[10] Bergek, A., Jacobsson, S., Carlsson, B., Linmark, S. and Rickne, A., 2008, “Analyzing the functionaldynamics oftechnological innovation systems: Ascheme of analysis”, Research Policy, 37, pp. 407-429.
[11] Alizadeh, P., & Malekifar, F. (2019). Policy Mixes for Science, Technology, and Innovation. Journal of Science & Technology Policy, 11(2), 513-526. {In Persian}.
[12] OECD (2018). Fostering SMEs’ participation in global markets: Final report. Paris: Organisation for Economic Co-operation and Development, Centre for Entrepreneurship, SMEs and Local Development.
[13] Kalinic, I., & Forza, C. (2012). Rapid internationalization of traditional SMEs: Between gradualist models and born globals. International Business Review, 21, 694–707
[14] Chetty, S., & Campbell-Hunt, C. (2004). A strategic approach to internationalization: a traditional versus a “born-global” approach. Journal of International marketing, 12(1), 57-81.
[15] Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modelling the speed of internationalization. Entrepreneurship Theory & Practice, 29(5), 537–553.
[16] Sasu, E. (2019). Government Export Promotion Organisations and SME Internationalisation: A Case Study of Ghana's Non-traditional Export Sector (Doctoral dissertation, Edinburgh Napier University).
[17] Ahokangas, P. (1998), “Internationalization and resources: an analysis of processes in NordicSMSs”, doctoral dissertation, Universitas Wasaensis, Vaasa.
[18] Vahlne, J.E., I Ivarsson, and J. Johanson. )2011(. “The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model.” International Business Review 20(1):1–14.
[19] Hoang, H. and Antoncic, B. (2003), “Network-based research in entrepreneurship: a criticalreview”, Journal of Business Venturing, Vol. 18 No. 2, pp. 165-87.
[20] Barney, J., Wright, M. and Ketchen, D.J. Jr (2001), “The resource-based view of the firm: ten yearsafter 1991”, Journal of Management, Vol. 27 No. 6, pp. 625-41.
[21] Grant, R.M. (1991), “A resource-based theory of competitive advantage: implications for strategyformulation”, California Management Review, Vol. 33 No. 3, pp. 114-35.
[22] Alvarez, S. and Busenitz, L. (2001), “The entrepreneurship of resource-based theory”, Journal of Management, Vol. 27 No. 6, pp. 755-75.
[23] Czinkota, M. R., and Ronkainen, I. A. (2009) Trends and indications in international business. Management International Review, 49(2), 249-265.
[24] Leonidou L.C, Katsikeas C.S, Palihawadana D, and Spyropoulou S., (2007) "An Analytical Review of the Factors Stimulating Smaller Firms to Export: Implications for Policy‐makers", International Marketing Review, 24(6), 735-770.
[25] Kanda, W, Mejia-Dugand, S and Hjelm, O., (2015) Governmental Export Promotion Initiatives: Awareness, Participation, and Perceived Effectiveness among Swedish Environmental Technology Firms. Journal of Cleaner Production, 98, 222-228
[26] Haddoud, M. Y., Jones, P., and Newbery, R. (2017) Export promotion programmes and SMEs’ performance: Exploring the network promotion role. Journal of Small Business and Enterprise Development, 24(1), 68-87.
[27] Yu, J., Gilbert, B. and Oviatt, B.M. (2011). Effects of alliances, time, and network cohesion on the initiation of foreign sales by new ventures. Strategic Management Journal, 32(4), 424-446.
[28] Milanov, H., and Fernhaber, S. A. (2014). When do domestic alliances help ventures abroad? Direct and moderating effects from a learning perspective. Journal of Business Venturing, 29(3), 377-391
[29] Revindo, M. D. (2017). Internationalisation of Indonesian SMEs: A thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy at Lincoln University (Doctoral dissertation, Lincoln University).
[30] Abel-Koch, Jennifer. et al (2018). Internationalisation of European SMEs, Taking Stock and Moving Ahead. Bpifrance, British Business Bank, Cassa Depositi e Prestiti SpA (CDP), Instituto de Crédito Oficial (ICO) and KfW Bankengruppe (KfW).
[31] Herreros, S., Inoue, K., Mulder, N., & CEPAL, N. (2018). Innovation and SME internationalization in Korea and Latin America and the Caribbean: Policy experiences and areas for cooperation. UN Economic Commission for Latin America and the Caribbean (ECLAC). Santiago
[32] G. Abonyi and S. Kagami (eds.), Innovation, Technology Transfers, Finance, and Internationalization of SMEs’ Trade and Investment, ERIA Research Project Report FY2013, (14), 37-96.
[33] Dominguez, N. (2020). Why do western SMEs internationalize through springboarding? Evidence from French manufacturing SMEs. Transnational Corporations Journal, 27(1).
[34] Hellsmark, H., Mossberg, J., Söderholm, P., & Frishammar, J. (2016). Innovation system strengths and weaknesses in progressing sustainable technology: the case of Swedish biorefinery development. Journal of Cleaner Production, 131, 702-715.
[35] Kern, F., Kivimaa, P., & Martiskainen, M. (2017). Policy packaging or policy patching? The development of complex energy efficiency policy mixes. Energy Research & Social Science, 23, 11-25.
[36] Jacobsson, S., & Bergek, A. (2011). Innovation system analyses and sustainability transitions: Contributions and suggestions for research. Environmental Innovation and Societal Transitions, 1(1), 41-57.
[37] Bergek, A., Jacobsson, S., Carlsson, B., Lindmark, S., & Rickne, A. (2008). Analyzing the functional dynamics of technological innovation systems: A scheme of analysis. Research policy, 37(3), 407-429.
[38] Danaeifard, H. and Alvani, M. (2017). An introduction to philosophy of public administration theories (2nd ed.). Saffar Publications, Tehran {In Persian}.
[39] Mobini-dehkordi, A., Nankali, A and Jamebozorgi, M. (2016). Investigating the effect of entrepreneurial orientation on the internationalization of companies in the Iranian glass and crystal industry with the mediating role of organizational culture. Journal of Entrepreneurship Development, 9(4).
[40] Yousefi, M. and Ghazizadeh, M. (2019). Assessing the Impact of Commercial and Social Networks on the Performance of Small to Medium Enterprises in International Markets with the Mediating Role of Market Knowledge. Journal of Business Management, 11(4)