Importance of FDI in SMEs Internationalisation
Author(s)
Philip Agyei PEPRAH , Yao HONGXING , Geraude Fortune M. KOUNDE ,
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Abstract
Previous research on internationalization has focused on developed economy enterprises and multinationals (MNEs). A growing number of enterprises which are now internationalizing are Small and Medium Enterprises (SMEs). The need for SMEs to internationalize has been increasing, and the consumption and production capacity of emerging nations is also significant. SMEs are key to reinforcing productivity, offering more inclusive growth and adapting to megatrends. Export and import activity is the most often used form of the global expansion of the companies of the SMEs sector. Therefore this research focused on the part played by foreign direct investment. The research aimed to explore the importance of FDI for SMEs internationalization. A systematic literature review was conducted in this research. A total of three relevant articles were selected for review. The results of this research provided evidence that SMEs which consider FDI as an investment resource appreciate the benefits of employment creation, innovation, skilled labor force, productivity growth, and competitiveness.
Keywords
SMEs, internationalization, FDI, outward FDI
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