How to cite:

Hamdana, Danardana Murwani, Imam Mukhlis. (2022).

Entrepreneurial Orientation and Internationalization of SME’s: A

Scoping Review. Journal Eduvest. Vol 2(5): 938-948

E-ISSN:

2775-3727

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Eduvest – Journal of Universal Studies

Volume 2 Number 5, May, 2022

p- ISSN 2775-3735- e-ISSN 2775-3727

ENTREPRENEURIAL ORIENTATION AND

INTERNATIONALIZATION OF SME’S : A SCOPING REVIEW

Hamdana

, Danardana Murwani

, Imam Mukhlis

Faculty of Economic, Universitas Negeri Malang, Universitas Mulia,

2,3

Faculty of

Economic, Universitas Negeri Malang, Indonesia

Email: hamdana.200[email protected].id, [email protected].id,

[email protected].id

ARTICLE INFO ABSTRACT

Received:

April, 26

2022

Revised:

May, 14

2022

Approved:

May, 16

2022

The purpose of this scoping review is to verify the evidence that

is already available regarding the entrepreneurial orientation

and internationalization of SMEs. Researchers used the model

from Arskey and O'Malley to perform the scoping review

method and the PRISMA flowchart to identify the literature

found. Researchers found 13 relevant articles related to

entrepreneurial orientation and the internationalization of

SMEs. Risk-taking, inventiveness, and proactiveness are all

important components of an entrepreneurial mindset, and

they are all important contributors to effective

internationalization. This shows that an entrepreneurial

orientation is needed by SMEs to move towards

internationalization.

KEYWORDS

Entrepreneurial Orientation, Internationalization of SME,

Scoping Review

This work is licensed under a Creative Commons

Attribution-ShareAlike 4.0 International

INTRODUCTION

Due to beneficial to economic growth, small business internationalization is an

important component of economic development and firm expansion (Ngoma, Ernest,

Nangoli, & Christopher, 2017). In developing economies, small and medium-sized

enterprises (SMEs) are responsible for the majority of jobs, welfare, tax revenues, products,

and poverty alleviation (Ahimbisibwe, Nkundabanyanga, Nkurunziza, & Nyamuyonjo,

2016). They ensure that the economy has access to the ideas, skills, and innovations it needs

to encourage competitiveness and effective resource allocation (Ahmed & Nwankwo,

Hamdana, Danardana Murwani, Imam Mukhlis

Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review 939

2013). As a result, it's not unexpected that many studies are still being undertaken in order

to identify techniques for improving SME performance (Lussier, Bandara, & Marom,

2016). The (OECD, 2009), underlines the importance of internationalization of

entrepreneurship among SMEs, given to the observed growth consequences of cross-border

ventures and their shown ability to drive economic development at national, regional, and

global levels. Internalization of SMEs has been recognized as a means of increasing the

economic and social development of emerging countries in this regard (Ngoma et al.,

2017).

Internationalization is defined as "the process through which a company expands its

operations beyond its native market" (Javalgi & Todd, 2011). The process of expanding

involvement in international business is known as internationalization (Kim, 2017). The

growth of SME internationalization has sparked interest in theoretical frameworks that may

describe and analyze SME internationalization processes throughout the last few decades

(Ngoma et al., 2017). Research on internationalization has mainly focused on large firms,

particularly Multinational Companies (MNCs) (Ngoma et al., 2017). As a result, it's crucial

to grasp the entrepreneurial dynamics that influence SMEs' internationalization from a

behavioral standpoint.

Entrepreneurial orientation (EO), or a company's willingness to become an

entrepreneur , is an important factor in the internationalization process (Andersén, 2010).

(Javalgi & Todd, 2011; Ripollés-Meliá, Menguzzato-Boulard, & Sánchez-Peinado, 2007).

Entrepreneurial orientation in the international environment is a research issue that has been

carefully researched within studies on international entrepreneurship, which has helped to

consolidate entrepreneurship and international business notions. (Wach, Glodowska, &

Maciejewski, 2018). The entrepreneurial dynamics are examined through the lens of the

firm's Entrepreneurial Orientation (EO), which reflects the firm's willingness and ability to

engage in entrepreneurship (Ngoma et al., 2017).

Numerous empirical studies have found a beneficial relationship between

entrepreneurial orientation and the internationalization process (Etemad, 2015; Swoboda

& Olejnik, 2016; Yiu, Lau, & Bruton, 2007; Yoon, Kim, & Dedahanov, 2018). Only a few

studies have shown no link between entrepreneurial approach and internationalization or

have found a negative link between the two factors (Zahra & Garvis, 2000). This study

aims to emphasize the importance of entrepreneurial orientation for SME globalization.

The purpose of this study is to show that if SME's want to access the international market,

the empowerment of entrepreneurial orientation in the SME sector can help them do so.

RESEARCH METHOD

The study used a scoping review method developed by (Arksey & O’Malley, 2005)

and (O’Brien, 2010). The Scoping Review allows examination of all relevant evidence on

a particular issue without considering the design of individual studies, but remains

systematic and with rigorous processes (O’Brien, 2010). This research design is used by

researchers because reference sources come from varied journals. The stages performed are

as follows:

1. Research Question

At this stage, researchers create research questions to adjust the objectives of existing

research (Arksey & O’Malley, 2005; O’Brien, 2010). To compile the researcher's

scoping review question using the Population, Exposure, and Outcome (PEO)

framework.

Table 1 PEO Framework for determining eligibility of research questions scoping review

Population

Exposure

Outcome

Eduvest – Journal of Universal Studies

Volume 2 Number 5, May 2022

940 http://eduvest.greenvest.co.id

SME

Entrepreneurial Orientation

Internationalization

Effect

Impact

Bounded between EO and

Internationalization

This research question is important to identify because it will guide the search

strategies built by researchers (Arksey & O’Malley, 2005). The research question is as

follows: What are the relations between entrepreneurial orientation and the

internationalization of SME?

2. Relevant Literature

This stage identifies relevant literature including literature database sources, search

keywords and literature timescales (Arksey & O’Malley, 2005; O’Brien, 2010). The

sources of the open access literature database used in the study are ScienceDirect,

Wiley Online Library and Taylor and Francis. In addition to other sources, researchers

also searched the literature using Google Scholar and DOAJ. This literature search

was conducted in February 2022. We then analyze the text for the words contained in

the title and abstract of the article taken to determine the appropriate key terms. Some

of the relevant terms are entrepreneurial orientation, internationalization of SME. The

next step of the primary search was carried out in March 2022 using the criteria of the

literature time span of the last five years (2017-2021).

3. Literature Selection

At this stage the researcher selects the literature obtained based on criteria that the

researcher has determined in accordance with the purpose of the study (Arksey &

O’Malley, 2005; O’Brien, 2010). Researchers used PRISMA flowcharts to document

the literature selection process in this study (Liberati et al., 2009). Here is the PRISMA

flow diagram from this study:

Figure 2. PRISMA chart showing results of literature search and study selectio

Hamdana, Danardana Murwani, Imam Mukhlis

Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review 941

4. Mapping and Collecting Literature

Researchers conduct literature analysis and collect literature found in accordance with

the research topic, namely the steps of compiling research protocols. Then the results

of the grouping of literature are presented in the form of a table matrix.

Table 2 Characteristics and findings of the included studies

Author

Year of

Publication

Study

Location

Study

Sample

Methodology

Relevant Result

Kang-Sik

Kim

2017

South

Korean

150 South

Korean SME

Random

Cross-

Sectional

Study

The findings show

that entrepreneurial

mindset and

investment in

employee human

capital are the most

important factors in

determining South

Korean SMEs'

internationalization.

Mikel

Alayo,

Amaia

Maseda,

Txomin

Iturralde,

Unai

Arzubiaga

2019

Spanyol

191 Spanish

SME

Quantitative

The degree of

internationalization

in family enterprises

is explained in part

by entrepreneurial

orientation, and this

link is shaped by a

diversely constructed

TMT. The worldwide

entrepreneurial

process is hampered

by a significant

concentration of

family members in

management roles.

This fact emphasizes

the need of

appointing non-

family executives to

help foster

globalization. The

findings also show

that engaging many

generations in

decision-making

stymies

entrepreneurial

internationalization,

causing challenges

with control and

coordination.

Eduvest – Journal of Universal Studies

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942 http://eduvest.greenvest.co.id

Cláudia P.

Ribau,

António C.

Moreira &

Mário

Raposo

2017

Portugal

147

questionnair

e‐based

survey of

managers

from plastic

manufacturi

ng SMEs

PLS SEM

When compared to

organizations that

react to external

stimuli, the results

reveal that proactive

firms are not only

better at inventing,

but their

entrepreneurial

oriented

characteristics also

support higher

performance in

international

markets. This

research has

implications for

SMEs looking to

improve their export

performance and

innovation. The

findings of this study

should help SMEs

owners and managers

better grasp the

potential

consequences of

innovation skills and

entrepreneurial

orientation on export

performance,

resulting in more

effective SMEs

management.

Hamdana, Danardana Murwani, Imam Mukhlis

Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review 943

Krzysztof

Wach,

Agnieszka

Głodowska

and Marek

Maciejews

2018

Polandia

355 SME

from Polland

OLS

The story of Polish

companies demonstrates

the importance of

entrepreneurial

orientation in the

application of knowledge

in the internationalization

process. At various

stages of the

internationalization

process, firms with a

higher entrepreneurial

orientation employ

specific types of

information much more

intensively.

Entrepreneurial mindset,

particularly risk-taking,

has a considerable

beneficial impact on

internationalization

scope. The number of

global markets in which a

company can operate

grows as its

entrepreneurial attitude

grows. Not just market

knowledge, but

particularly network and

entrepreneurial

knowledge, have

considerable favorable

effects on the

acceleration of the

internationalization scale

in the traditional manner.

Nana Osei-

Bonsu

2019

United

Arab

Emirates

eight CEOs

and

twenty-three

senior

managers

from eight

SMEs in

four

developing

markets

Qualitative

case studies

approach

The findings of this study

show that CEOs and

senior managers'

entrepreneurial mindset

has a substantial impact

on SMEs' ability to be

competitive, inventive,

and risk-takers,

equipping them to be

more aggressive in

international business.

Eduvest – Journal of Universal Studies

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944 http://eduvest.greenvest.co.id

Mohamme

d Ngoma

Abaho

Ernest

Sudi

Nangoli

Kusemerer

christopher

2017

Uganda

282 SME

Quantitative

and cross-

sectional

The findings show

that entrepreneurial

orientation and

SMEs'

internationalization

have a significant

beneficial

association. All

aspects of

entrepreneurship

orientation were

found to have a

significant and

positive relationship

with

internationalization.

Annaële

Hervé,

Christophe

Schmitt,

Rico

Baldegger

2020

Swiss

190 MSME

Quantitative

research

design

The researcher

noticed a positive and

significant

relationship EO with

internationalization.

Shouvik

Sanyal,

Mohamme

Wamique

Hisam, Ali

Mohsin

Salim

Baawain

2020

Oman

150 SME

Owner and

Managers

Quantitative

The findings show

how the selected

variables affect the

degree of

internationalization

of SMEs. According

to the findings,

network competency

has the greatest

impact on Omani

SMEs' degree of

internationalization,

followed by human

capital and

entrepreneurial

orientation, while

market volatility

moderated the

relationship between

entrepreneurial

orientation and

degree of

internationalization

of Omani SMEs,

despite being

insignificant.

Muhamma

d Imran

Hanif

& Madiha

Irshad

2018

Pakistan

200 SMEs of

4 cities of

Pakistan that

are Lahore,

Islamabad,

Karachi and

Multan

Quantitative

Tthere is a significant

impact of strong

entrepreneurial

support on

internationalization

intensity of SME’s

Hamdana, Danardana Murwani, Imam Mukhlis

Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review 945

Junghyun

Yoon, Ki

Keun Kim,

and

Alisher

Tohirovich

Dedahanov

2018

South

Korean

334 CEOs or

managing

directors of

SME

Structural

equation

modeling

(SEM)

International

entrepreneurial

orientation has a

significant effect on

international

performance as

internationalization

Masoud

Karami,

Jintong

Tang

2019

New

Zealand

164

international

izing SMEs

in New

Zealand

PLS SEM

The direct impact of

EO on international

performance as well

as the mediating role

of experiential

learning and

networking

capability in this

focal relationship.

These findings reveal

the importance of EO

internationalization

of SMEs.

Byoungho

Jin & Sojin

Jung & So

Won Jeong

2017

South

Korean

401 Korean

Exporting

SME

Quantitative

The differential

effects of each

entrepreneurial

orientation and the

mediating effect of

marketing capability

internationalization

strategies and

performance.

Proactiveness and

risk taking appeared

to function as

significant

antecedents of

marketing capability.

This study further

confirms that the

mediating role of

marketing capability

in entrepreneurial

orientation-

performance

relationships vary by

entrepreneurial

orientation

dimensions. Taking

the direct and indirect

roles of the

entrepreneurial

orientation

Eduvest – Journal of Universal Studies

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Kang Sik

Kim

2017

South

Korean

150 South

Korean SME

Quantitative

The international

orientation of

entrepreneur is

positively related to

the degree of

internationalization

of SMEs in Korea.

5. Preparation and Reporting of Results

Researchers summarize and compile the selected literature and then report the results

in the results and discussions.

The original searc conducted in March 2022 yielded 406 potentially relevant citations.

After deduplication and relevance screening, 13 citations met the eligibility criteria

based on title and abstract and the corresponding full-text articles were procured for

review.

RESULT AND DISCUSSION

This scoping review presented evidence on the role of entrepreneurial orientation on

internationalizion of SME from studies published between January 2017 to December

2021. The review showed that a total of 13 studies were published within the period from

developing country. Most of the studies were conducted in South Korea (28%) and other

country such as Spanyol, Portugal, Polandia, Pakistan, United Arab Emirates, Uganda,

Swiss, Oman, dan New Zealand only 8% or one article each country. Moreover, the

majority of the studies were quantitative and only one aticle used qualitative approach. The

review further revealed that the entrepreneurial orientation positively related to the

internationalization of SME.

The first article hypotesis about the impact of entrepreneurial orientation on the level

of internationalization of a firm positively verified, especially in relation to innovativeness

and risk-taking. The researcher found that risk-taking and innovativeness have positive

impacts on the level of internationalization (Wach et al., 2018). Greater entrepreneurial

orientation increases the number of foreign markets in which a given firm operates.

The second article, the international orientation of entrepreneur is also positively

related to the degree of internationalization of SMEs in Korea (Kim, 2017).

Entrepreneur or managers of SMEs who implement programs to foster positive attitude

towards expanding internationally among employees and demonstrate the importance of

thinking outside the domestic market will improve the probability of success and create

a competitive advantage of a firm. The next article stated entrepreneurial Orientation

influences how firms operate, make decisions and use innovation activities to influence

export performance (Ribau, Moreira, & Raposo, 2017). The remain article also has same

empirical finding with the other articles.

CONCLUSION

The scoping review framework that researchers present has five stages, namely

identifying research questions, searching for relevant literature, selecting literature,

mapping and collecting literature and compiling and reporting results. Our study findings

indicate all of the article has positive related between entrepreneurial orientation and

internationalization.

 
Hamdana, Danardana Murwani, Imam Mukhlis 
Entrepreneurial Orientation and Internationalization of SME’s: A Scoping Review   947 
 
Nowadays, one of the most hotly debated topics in internationalization research is 
entrepreneurial orientation. The major components of entrepreneurial orientation include 
risk-taking, innovativeness, and proactiveness, all of which are important causal elements 
in successful internationalization. Incorporating the concept of knowledge into discussions 
about entrepreneurial orientation and internationalization appears to be a natural fit based 
on theoretical concepts; nevertheless, empirical research has mostly ignored this topic. 
Understanding  the  fundamental  principles  and  characteristics  of  firm  managers' 
entrepreneurial  attitude  can  be  a  huge  help  for  SMEs  looking  to  chart  a  clear  path  to 
international enterprise. Entrepreneurial orientation (EO) had a significant impact on the 
development of the organizational capabilities required for internationalization, according 
to a study of SMEs. 
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