The role of organizational e-readiness in the internationalization process of SMEs operating in a small island state

Abstract

As a result of technology and in particular, ICT, the world has become a globalised village where firms are able to communicate/trade efficiently from any country. This is especially significant for SMEs operating from a small island state, such as Malta, because they face grater challenges including limited demand and higher transportation costs. The capability of SMEs to harness ICT solutions can be measured using specialised tools, such as the Organizational E-readiness Assessment Tool. E-ready SMEs are generally in a better position to overcome the challenges of insularity and are more likely to effectively gain access to foreign markets in a process called internationalization. Throughout the years, research has been devoted to the subject of ‘internationalization,’ however the Uppsala Model stands out because of its distinctive dynamic approach and the number of times it has been revisited by its authors in an effort to stay abreast of current times and to respond to criticism. The purpose of this study is to understand the role of Organizational E-readiness in the internationalization process of SMEs. Research has been scoped to the fashion wear industry (retailing, distribution, and manufacturing) in the small island state of Malta. The importance of this study comes from the fact that SMEs are an important driving force in the Maltese economy, however their growth depends on their ability to gain access to foreign markets. Technology is hypothesised to be the key enabler to open the Maltese business community to the rest of the world, however empirically grounded evidence and insights are not readily available to this effect. Participating SMEs had different levels of Organizational E-readiness and were in different stages of the internationalization process. The conclusion drawn from this study suggests the co-evolution of E-readiness and internationalization capabilities of SMEs operating in a small island state.