Thesis-2005-Al-Mutairi.pdf (64.62 MB)
An evaluation model for small companies international expansion decisions
thesis
posted on 2011-01-14, 11:21 authored by Saud Ghanim Al-MutairiThe owners, managers and executives of companies would agree that change has
become a constant phenomenon that must be managed if an organisation is to survive.
This change could be the result of internal or external environmental pressure on an
organisation, or both. Expansion to global markets is the ultimate target. This was
difficult in the past but now the opportunities to do business in foreign countries are
much easier as a result of advances in communication, transportation and global
treaties.
Generally, world trade is still in favour of large companies because of financial, trade
and host country aspects. The advantage of the incentives system is also mostly
available to larger companies. Furthermore, most large companies have international
experience. These types do not need advice or help to implement an international
strategy because they probably have their own global evaluation department to do that
for them, or they have a business advisor. However, the reduction of custom duties
under the World Trade Organisation Agreements and the advancement in
technologies and communications have provided opportunities for small-sized
companies to enter new markets and to improve their access to production
technologies, among other benefits of outward globalisation. The owners and
managers of most small-sized companies are nonetheless still cautious about entering
a global market because of the problems associated with it. This research therefore
will focus on small-sized companies because these are the types of organisation that
need advice or consultancy from outside because their resources and skills are limited.
The main aim of the research is to develop a new decision model to help owners and
managers of small-sized companies to identify weaknesses within their activities, to
show how competitiveness can be maintained in their markets, and to enable them to
select international markets. In order to propose the
final Global Evaluation Model, certain processes and evaluations have been prepared
and examined. The development framework of this model was conducted in two main
phases: the framing phase and the Global Evaluation Model phase. The framing phase
is the process of conducting a survey to provide as full an understanding as possible
about the critical factors that shape and affect the practices and activities of smallsized
companies in global markets. This phase provides an insight into the influential
factors of the real global economy that the small-sized company faces when deciding
to enter the global market. The second phase has five stages and has been evaluated
by using a number of case studies of companies to be tested. The first two stages have
data inputted through multiple sources, including documentation, interviews and
literature related theories and approaches. These theories and approaches include
Danny Miller's Four Trajectories, Mintzberg's Pentagon of Forces and Forms, Miles'
and Snow's approach, and Galbraith's Level of International Development. This author of this research hopes that that this work will succeed in making a new
contribution to the domain of manufacturing organisations by providing a Global
Evaluation Model to be used as a support tool for small-sized companies when
making decisions about their desire to expand globally.
History
School
- Mechanical, Electrical and Manufacturing Engineering
Publisher
© S. Al-MutairiPublication date
2005Notes
A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.EThOS Persistent ID
uk.bl.ethos.419951Language
- en