Challenges faced by SMEs in the internationalization process to emerging markets and ways to overcome them

  • Hugo Miranda Stevens (Student)

Student thesis: Master's Thesis

Abstract

In today‘s globalization era, an increasing number of SMEs is expanding its international presence. At the same time, emerging markets present themselves as attractive and growing areas filled with opportunities. However, they also present challenges due to the contrast with mature markets. Therefore, the objective of the current thesis is to study the challenges faced by SMEs in the internationalization process to emerging markets, as well as the ways used to deal with them. The company chosen is a Portuguese SME, SANITOP – Material Sanitário, Lda., which is internationally present in Maputo, Mozambique. The research is conducted using a qualitative method, more specifically a case study essentially based on five interviews with employees of the company. The case study shows evidence of numerous challenges faced by SANITOP in the Mozambican emerging market, some of which match the literature on SME internationalization: shortage of working capital; inadequate quantity of and/or untrained personnel for internationalization; difficulty in matching competitors‘ prices; and excessive transportation costs. Furthermore, additional major challenges were found in the context of the Mozambican market, especially the devaluation of national currency and the lack of foreign currency, which further extends the current literature on the subject. As for ways of overcoming internationalization barriers, although the literature is fairly matched with three options (networks, external support and technologies), there are numerous other options found in the case study which remain unmentioned in the literature and that are particularly useful for SMEs present in emerging markets.
Date of Award19 Jul 2016
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorLaure Leglise (Supervisor)

Designation

  • Mestrado em Gestão: Programa Internacional

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