Association, and Abu Dhabi Council for Economic
Development.
Regarding to The Global Entrepreneurship Monitor,
(TEA), the UAE’s level of innovation lead by economy is at
an equivalent level of Singapore and Norway, while, the
UAE’s (TEA) score is less than the one in Australia,
Netherland, and USA (Emirates Foundation 2017).
The aim of this study is to investigate the impact of
entrepreneurial orientation to obtain the international sustainability of small enterprises in developed and emerging
markets. In addition, emphasizing the role of national culture
as a moderate of small enterprises’ international
sustainability.
2 Literature Review
2.1 Theoretical Framework
International business has become for more than three decades a universal phenomenon. Theories have been generated
to explicate the international business concept and importance worldwide. This study reviewed some of the main
theories of business globalization and INV. There are four
theories that have tackled the international business area: the
classical theory, early market imperfections theory, later-fay
market imperfections theory, and the internationalization
theory; each theory included more than one theory in order
to get to the nearest explanation to the International Business concept (Mtigwe 2006).
According to Buckley and Casson (1976, 1985), globalization delivers a better awareness about the firm’s capabilities and the new foreign markets. When the small
enterprise creates its production line based on the new
market attraction, the firm will gain higher profits with lower
production costs (see Table 1).
2.2 International Entrepreneurship Theory
International Entrepreneurship (IE) theory is one of the most
important theories that covered the area of international
business, entrepreneurship, entrepreneurial orientation, and
strategic management. During the past two decades, the
theory has been updated and created many different
approaches that have been followed (Young et al. 2003).
Unfortunately, the theory does not have a solid theoretical
framework (Mtigwe 2006). The previous limitation of the
theory leads us to the requirement of updating the organization’s strategies, business model, and structure as a result
of globalization. The organization’s targets need to be
defined outside its nation-state or it needs to involve
cross-border activities. Also, at management level, it has to
be based on a multinational context (comparative or
cross-cultural); therefore, the organization will be able to
utilize its risks, resources, and benefits. It has to enquire a
very high level of knowledge for the foreign environment,
culture, market, and customers’ demand.
2.3 Entrepreneurial Orientation
During the last three decades, the concept of entrepreneurial
orientation (EO) has become the major focus of
entrepreneurship literature, which found that EO positively
impacted the level of implementations of entrepreneurial
activities within different organizations. Many articles have
delivered the EO terminology in different tags to clarify the
phenomena. Regarding to Dess and Lunpkin (Covin and
Wales 2012), the phenomena of EO is the “organizational
level phenomena involving key decisions made behalf of the
entire organization (Covin and Wales 2012).” Covin and
Slevin (Covin and Wales 2012) mentioned that “entrepreneurial firms are those in which top managers have
entrepreneurial management styles, as evidenced by the
firms’ strategic decisions and operating management philosophy (Covin and Wales 2012)”.
The flexibility of SMEs gives them more chances to enter
foreign markets than large organizations because they are
less hindered by the firm’s structures that provide sustainability and improved productivity (Bos-Brouwers 2010). So,
small enterprises are able to achieve sustainable by implementing innovative practices rapidly, similarly they are able
to study cultural differences in many different places to
provide sustainability to their practices easily (Jamsa et al.
2011). Besides, small enterprises have more opportunities to
increase their expansion through implementing their entrepreneurial practices abroad, evaluating, and identifying risks
and benefits that they may gain from these foreign investments, so top managers may be able to make decisions to
attain their goals (Peng and Meyer 2016).
Some articles presented major role of SMEs in international
business. Nevertheless, the implementation of entrepreneurial
activities in some developing countries is critical. For example, both entrepreneurial orientation and the local environment
in Kenya impact negatively the competitive strategies which
were adopted to enhance SME’s performance.
2.4 The Role of National Culture
National culture is considered as one of the most difficult
challenges that need to be well studied before starting any
business in a new venture. It is a complex concept that
280
K. A. M. H. A. K. Al Awadhi
Development.
Regarding to The Global Entrepreneurship Monitor,
(TEA), the UAE’s level of innovation lead by economy is at
an equivalent level of Singapore and Norway, while, the
UAE’s (TEA) score is less than the one in Australia,
Netherland, and USA (Emirates Foundation 2017).
The aim of this study is to investigate the impact of
entrepreneurial orientation to obtain the international sustainability of small enterprises in developed and emerging
markets. In addition, emphasizing the role of national culture
as a moderate of small enterprises’ international
sustainability.
2 Literature Review
2.1 Theoretical Framework
International business has become for more than three decades a universal phenomenon. Theories have been generated
to explicate the international business concept and importance worldwide. This study reviewed some of the main
theories of business globalization and INV. There are four
theories that have tackled the international business area: the
classical theory, early market imperfections theory, later-fay
market imperfections theory, and the internationalization
theory; each theory included more than one theory in order
to get to the nearest explanation to the International Business concept (Mtigwe 2006).
According to Buckley and Casson (1976, 1985), globalization delivers a better awareness about the firm’s capabilities and the new foreign markets. When the small
enterprise creates its production line based on the new
market attraction, the firm will gain higher profits with lower
production costs (see Table 1).
2.2 International Entrepreneurship Theory
International Entrepreneurship (IE) theory is one of the most
important theories that covered the area of international
business, entrepreneurship, entrepreneurial orientation, and
strategic management. During the past two decades, the
theory has been updated and created many different
approaches that have been followed (Young et al. 2003).
Unfortunately, the theory does not have a solid theoretical
framework (Mtigwe 2006). The previous limitation of the
theory leads us to the requirement of updating the organization’s strategies, business model, and structure as a result
of globalization. The organization’s targets need to be
defined outside its nation-state or it needs to involve
cross-border activities. Also, at management level, it has to
be based on a multinational context (comparative or
cross-cultural); therefore, the organization will be able to
utilize its risks, resources, and benefits. It has to enquire a
very high level of knowledge for the foreign environment,
culture, market, and customers’ demand.
2.3 Entrepreneurial Orientation
During the last three decades, the concept of entrepreneurial
orientation (EO) has become the major focus of
entrepreneurship literature, which found that EO positively
impacted the level of implementations of entrepreneurial
activities within different organizations. Many articles have
delivered the EO terminology in different tags to clarify the
phenomena. Regarding to Dess and Lunpkin (Covin and
Wales 2012), the phenomena of EO is the “organizational
level phenomena involving key decisions made behalf of the
entire organization (Covin and Wales 2012).” Covin and
Slevin (Covin and Wales 2012) mentioned that “entrepreneurial firms are those in which top managers have
entrepreneurial management styles, as evidenced by the
firms’ strategic decisions and operating management philosophy (Covin and Wales 2012)”.
The flexibility of SMEs gives them more chances to enter
foreign markets than large organizations because they are
less hindered by the firm’s structures that provide sustainability and improved productivity (Bos-Brouwers 2010). So,
small enterprises are able to achieve sustainable by implementing innovative practices rapidly, similarly they are able
to study cultural differences in many different places to
provide sustainability to their practices easily (Jamsa et al.
2011). Besides, small enterprises have more opportunities to
increase their expansion through implementing their entrepreneurial practices abroad, evaluating, and identifying risks
and benefits that they may gain from these foreign investments, so top managers may be able to make decisions to
attain their goals (Peng and Meyer 2016).
Some articles presented major role of SMEs in international
business. Nevertheless, the implementation of entrepreneurial
activities in some developing countries is critical. For example, both entrepreneurial orientation and the local environment
in Kenya impact negatively the competitive strategies which
were adopted to enhance SME’s performance.
2.4 The Role of National Culture
National culture is considered as one of the most difficult
challenges that need to be well studied before starting any
business in a new venture. It is a complex concept that
280
K. A. M. H. A. K. Al Awadhi