International Journal of Marketing & Financial Management

NAVIGATING INTERNATIONAL BUSINESS EXPANSION: CHALLENGES AND OPPORTUNITIES FOR MSMES

Archana Verma, Dr. Prof Amish Soni

Archana Verma, PhD scholar, GLS School of Doctorial Research and Innovation, GLS University, Ahmedabad, Gujrat, India

Dr. Prof Amish Soni, Asst Professor, MBA Dept.GLS University, Ahmedabad, Gujrat, India

DOI : https://doi.org/10.5281/zenodo.15030624 Page No : 01-14

Published Online : 2025-03-15

Download Full Article : PDF Check for Updates

This paper aims to investigate the critical factors that influence the international business expansion of Micro, Small, and Medium Enterprises (MSMEs), a sector pivotal to economic growth and job creation. Recognizing the unique challenges and opportunities that MSMEs face in global markets, the study identifies and analyses key determinants such as Global Strategic Planning (GSP), International Market Competency (IMC), Competitive Advantage (C), Financial Capacity (FC), and Market Knowledge Acquisition (MKA). By employing a SMART PLS (Partial Least Squares Structural Equation Modeling) approach, the research provides a nuanced understanding of how these factors contribute to MSMEs' internationalization efforts. A SMART PLS diagram, developed specifically for this study, visually represents the complex interrelationships between these variables. This model highlights both the direct and indirect effects of these determinants on MSME success in international markets. Findings from the analysis reveal that enhanced strategic competencies and robust financial capacity are crucial in overcoming

entry barriers and optimizing global expansion potential. These insights underscore the importance of targeted support for MSMEs to strengthen their international competitiveness. The outcomes of this research offer practical recommendations for policymakers, business leaders, and MSME stakeholders, guiding them in developing strategies to facilitate smoother international market integration. By addressing the identified challenges and leveraging available opportunities, this study provides a valuable roadmap for fostering sustainable growth and maximizing the global impact of MSMEs.

Keywords: MSMEs, international business expansion, global strategic planning, market competency, competitive advantage, financial capacity, market knowledge acquisition, internationalization, economic growth.

References

Aaker, D. A. (2020). The role of loyal customers as brand advocates. Journal of Brand Management, 27(2), 134-146. https://doi.org/10.1057/s41262-019-00168-4

Agarwal, R., Bhatnagar, R., & Singh, A. (2021). Organisational commitment to resources and technology adoption. Journal of Business Research, 124, 142-151. https://doi.org/10.1016/j.jbusres.2020.11.045

Amit, R., & Zott, C. (2020). Value creation in e-commerce: The role of digital tools and strategies. Journal of Business Research, 112, 25-35.

Azevedo, S. G., Carvalho, H., & Cruz-Machado, V. (2020). Collaborative initiatives between companies and suppliers to promote green supply chain practices. Journal of Cleaner Production, 245, 118870. https://doi.org/10.1016/j.jclepro.2019.118870

Batra, R., & Verma, R. (2018). Global marketing expansion and challenges in MSMEs. International Business Review, 27(5), 39-56.

Bitner, M. J., Brown, S. W., &Meuter, M. L. (2019). The role of customer support responsiveness in online experiences. Journal of the Academy of Marketing Science, 47(6), 948-963.

Brown, A. D., McDonald, G., & Smith, P. (2020). Interdepartmental collaboration in overcoming technical challenges. Journal of Information Technology, 35(2), 154-166.

Chowdhury, R. (2018). MSMEs and their financial hurdles in international business expansion. Asian Business & Management, 17(4), 123-140.

Davis, F. D., Bagozzi, R. P., &Warshaw, P. R. (2020). Employee training and technology adoption. Management Science, 66(5), 1883-1898.

Fernandez, J. (2021). The role of global supply chains for MSME competitiveness. Journal of International Business Studies, 52(6), 890-905.

Gefen, D., Karahanna, E., & Straub, D. W. (2018). Trust and security in online purchases. Information Systems Research, 29(3), 528-543. https://doi.org/10.1287/isre.2018.0832

Ghisellini, P., Cialani, C., &Ulgiati, S. (2018). Circular economy and recycling practices. Environmental Development, 27, 53-62. https://doi.org/10.1016/j.envdev.2018.03.001

Govindan, K., Soleimani, H., & Kannan, D. (2019). Waste reduction initiatives in sustainable supply chain management. International Journal of Production Research, 57(11), 3386-3404.

Huang, M., Chang, H., & Lee, J. (2021). Internal collaboration in integrated marketing communication: Enhancing message consistency and customer experiences. Journal of Marketing Management, 37(1-2), 104-119.

Kaplan, A. M., & Haenlein, M. (2020). Social media and integrated marketing communication strategies. Journal of Marketing, 84(3), 38-53.

Liu, Y., & Zha, Y. (2019). Integrated marketing communication strategies in international business. Journal of Marketing Strategy, 28(2), 74-92.

Lovett, M. J., Peres, R., &Shachar, R. (2020). The impact of word-of-mouth on customer loyalty. Marketing Science, 39(4), 531-551.

Morgan-Thomas, A., & Veloutsou, C. (2021). The importance of customer loyalty in international market expansion. International Marketing Review, 38(3), 324-348.

Oliver, R. L. (2017). Customer loyalty: A comprehensive overview. Journal of the Academy of Marketing Science, 45(5), 487-508.

Opara, B., & Ogbu, S. (2020). Competitive challenges faced by MSMEs in global markets. Journal of Small Business Management, 58(3), 450-468.

Park, C., & Kim, Y. (2020). The significance of comprehensive product information in online retail. Journal of Retailing, 96(3), 349-361. https://doi.org/10.1016/j.jretai.2020.02.003

Porcu, L., de Chernatony, L., & Pina, J. M. (2017). Integrated communication channels and their influence on consumer perception. Journal of Marketing Communications, 23(4), 360-375.

Pulizzi, J. (2019). The role of storytelling in integrated marketing communication. Content Marketing Institute, 24(5), 12-17.

Reichheld, F. F. (2018). The economics of customer retention. Harvard Business Review, 96(1), 56-65.

Sarkis, J., Gonzalez-Torre, P., &Adenso-Díaz, B. (2021). Reducing carbon emissions in supply chains: Strategies and implications. Journal of Supply Chain Management, 57(2), 37-50. https://doi.org/10.1111/jscm.12173

Schultz, D. E., Block, M. P., &Shiffman, R. (2018). Digital personalisation and its role in enhancing consumer engagement. Journal of Digital Marketing, 43(3), 49-62.

Tarafdar, M., Zhang, J., & Guo, F. (2017). Website design and user satisfaction in e-commerce platforms. Information Systems Journal, 27(2), 101-118. https://doi.org/10.1111/isj.12106

Thomson, M., MacInnis, D. J., & Park, C. W. (2019). The role of emotional attachment in brand loyalty. Journal of Consumer Research, 46(6), 1017-1033. https://doi.org/10.1093/jcr/ucz024

Venkatesh, V., Thong, J. Y. L., & Xu, X. (2018). Technical support and technology adoption: The moderating role of accessibility. Information Systems Research, 29(2), 345-361. https://doi.org/10.1287/isre.2017.0736

Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2021). Customised digital experiences through artificial intelligence. Journal of Interactive Marketing, 53, 42-58. https://doi.org/10.1016/j.intmar.2021.01.003

Zhang, D. (2019). Strategic partnerships and their impact on MSME internationalization. Global Strategy Journal, 9(2), 189-206.

Zhang, P., Zhao, K., & Liu, Y. (2019). User-friendly interfaces and technology adoption. Computers in Human Behavior, 92, 43-54. https://doi.org/10.1016/j.chb.2018.11.013

Zhu, Q., Geng, Y., & Lai, K. (2017). Integration of green procurement strategies in supply chains and their influence on sustainability outcomes. International Journal of Production Economics, 183, 321-332.

Cite this Article as: Verma A and Soni A (2025), “Navigating International Business Expansion: Challenges and Opportunities for MSMEs”, International Journal of Marketing & Financial Management, Volume 13, Issue 1, 2025, pp 01-.14 , DOI : https://doi.org/10.5281/zenodo.15030624

Article View: 14
PDF Download: 3