Narooz, Rose Ibrahim Iskander
(2014).
The role of social capital in the internationalization process of Egyptian and UK SMEs: a co-evolutionary perspective.
University of Birmingham.
Ph.D.
Abstract
There is increasing evidence of the positive role that the social capital plays in facilitating the internationalisation of SMEs. Network social capital serves as a key platform for SMEs to access resources and competencies they lack. Yet surprisingly little is known about how network social capital co-evolves with the international growth and survival of SMEs. Moreover, little is known about how SMEs from different institutional contexts rely on their network attachments to cope with the challenges presented by the external environment. This study aims to address these gaps through providing a comprehensive analysis of internationalisation patterns, network social capital development and how these two fields may co-evolve over time and compares well-established SMEs from two national contexts (UK and Egypt) which contrast in their cultures and levels of institutional development. This study relies on comparative multiple case studies and adopts a mixed methods approach to data analysis to investigate co-evolutionary patterns and inter-country differences respectively. The study contributes to the International Entrepreneurship literature through offering a comprehensive/dynamic understanding of internationalisation and by indicating key differences in the behaviour of SMEs from emerging and developed economies. It concludes that the co-evolutionary perspective usefully highlights the dynamic interaction between SMEs and their contexts.
This study relies on comparative multiple case studies consisting of twenty UK and twenty Egyptian SMEs. These case studies investigate different internationalisation and networking patterns and identify co-evolutionary patterns of internationalisation and associated networking behaviour over time. A mixed methods approach to data analysis was used to investigate co-evolutionary patterns and inter-country differences respectively.
The study contributes to the International Entrepreneurship [IE] literature through offering a comprehensive and dynamic understanding of internationalisation and by indicating key differences in the behaviour of SMEs from emerging and developed economies. It concludes that the co-evolutionary perspective usefully highlights the dynamic interaction between SMEs and their contexts. It shows that SMEs not only adapt to changes in their external environment but in some cases are able to influence the environment to their favour.
The thesis closes with implications and recommendations for Egyptian and UK policy makers and managers.
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