The primary objective of this research is to determine how SMEs control the risk involved in business strategic alliances. The research question is: How should performance risk and relationship risk within the strategic alliances of SMEs be controlled? Subsequently, we applied qualitative research methods to collect data for this research; further, our research design included a case study of the SMEs in Zhejiang, China.

Small and medium enterprises (SMEs) are the foundation of Taiwan¡¦s corporate structures and the driving force behind Taiwan¡¦s economic development. The economic miracle in the past could be attributed to the high proportion (97.8%) of small enterprises in Taiwan (2005). Therefore, how small and medium enterprises use human resource management to obtain organizational competitive advantages is the motivation behind this research. High-performing and potential SMEs¡¦ practices of human resource management may be beneficial to the learning and referencing of domestic enterprises. Thus, this study focuses on enterprises which received the National SMEs Award from the Ministry of Economic Affairs and enterprises listed as ¡§small but beautiful, small but rich¡¨ on the Feb 2006 issue of CommonWealth Magazine. Through in-depth interviews, this study attempted to qualitatively induce and analyze the core practices involved in human resource management and the practices developed under and applied to various situations. Through literature review and interviews with six high-performing SMEs in Taiwan, the following results were obtained: 1.The analysis of the human resource management measures currently adopted by SMEs showed that human resource management and organizational competitive advantages are correlated. Human resource management measures are influential to human resource competence, organizational core competence, and organizational competitive advantages. 2.From a universalistic perspective, SMEs¡¦ core practices of human resource management include: sharing of operation results with employees, providing a strict recruitment procedure and valuing employees¡¦ cultural adaptation, offering highly-competitive salary, valuing cultivation of professional competence, integrating performance, salary, and development, and providing open communication channels. 3.From a contingency perspective, we probed into the SMEs¡¦ practices of human resource management developed under and applied to various contexts. The analysis of the outstanding SMEs showed that human resource management measures that enterprises have focused on to obtain competitive advantages may vary with practical contexts. Organizations can thus react and adapt to the dynamic environment and maintain or elevate their competitive advantages.

Small and medium enterprises play an important role in the development of a country. The growth of SMEs is also important for the world economy which has been widely discussed in recent years. Although the growth of small firm is a well known topic in theoretical research, still there are some research gaps that need to be filled. There is no single multidimensional theory which would embrace all possible approaches; most studies on SMEs’ growth examine the growth factors one by one. (Wasilczuk, 2000) Nor is there any single theory that can adequately explain small business growth due to the heterogeneity of SMEs. Moreover, growth itself is difficult to measure, and can be measured either objectively or subjectively. (Delmar, 1996) Therefore, this study incorporates the resource-based view, as well as the consideration of SMEs’ fives stages model to examine the growth factor of SMEs. The resource-based view provides a unified approach in the conceptualization of the resource analysis in the small firm. The five stages model shows the position of SMEs current growth stage. By analyzing SMEs’ key resources (tangible and intangible resources), indentifying their growth stages, SMEs can find out the critical resources which influence their business growth. As a conclusion, the study finds that each resource has its importance in different stages. Tangible resources, such as cash and physical resources are critical in the start-up firms, while intangible resources are prioritized in the success and resource maturity stages. In order to gain the competitive advantages, SMEs should fully develop the unique and inimitable resources such as the brand, technology, culture and reputations.

Title: The influence of network relationships in the internationalization of SMEs   Authors: Andersson, Arvid & Helander, Anna     Tutor: Karlsson, Tomas     Date: June, 2009   Background: The world has become globalized, resulting in a rapid increase in international trade. Also many SMEs actively internationalize. At the same time, networks are increasingly replacing traditional markets. In the internationalization process of SMEs it has through research been confirmed that firms are influenced by network relationships in their internationalization process. Problem: Choice of foreign market and market entry mode are crucial decisions SMEs make in their internationalization process. It has been found that network relationships affect SMEs in these decisions. However, the research within this area has been focusing heavily on knowledge-intensive SMEs. Scholars call for further research in relation to other industries, as well as a more specific investigation of what kind of different network relationships that affect choice of foreign market and of market entry mode. Purpose: The purpose of this thesis is to investigate how SMEs’ choice of foreign market and market entry mode is influenced by different types of network relationships.   Method: A multiple case study strategy was applied and four SMEs were included in the sample. Data was collected through semi-structured interviews, (three personal and one telephone interview), and complemented with secondary data. The respondents were the CEOs of the case firms. The collected data was categorized and each case firm was analyzed, followed by cross-case comparisons. Conclusion: The findings in this thesis show that all case firms had been affected by network relationships in the choice of foreign market and/or choice of market entry mode. Generally the findings conformed to a certain degree to previous findings concerning SMEs in knowledge intensive industries. Further, it was found that network relationship influence was more frequent in the choice of foreign market. In this decision, firms which had taken a proactive approach were mainly infuenced by strong and formal relationships. Firms taking a reactive approach were mainly influenced by weak and informal relationships. Concerning entry mode, it was only weak, informal relationships which had influenced the decision.

Purpose: The purpose of this thesis is to investigate how SMEs in the Småland region define and communicate their CSR activities towards their stakeholders. Background: Corporate social responsbility is a topic that is widely discussed today. In many cases the CSR agenda has been adopted by many large corporations. However there is a demand from governmental bodies to spread this agenda further to include and engage small-to-medium enterprises (SMEs). The main reason for this approach is due to SMEs being the most frequent type of business in Europe and is often influential in the local communities (Castka, Balzarova, Bamber, Sharp, 2004). There is also a demand from stakeholders to receive information about CSR. Research within the field of CSR Communication has mostly been focused on large corporations. Recently, the focus has shifted towards SMEs and  it is still an emerging field.  The research  concerning CSR and CSR communication within the SME context is limited and therefore it is an important area that needs to be addressed. Method: The purpose of this thesis was achieved by using the case study approach. Two companies; Smålandsbygg and Sköna Hem AB were investigated. Four respondents from each company were interviewed and the outcome of the interviews was analyzed together with the frame of reference. Conclusions: According to the findings it is difficult to provide one common definition of CSR that can be applied for the two companies in the study. In general it might be difficult to provide a common definition of CSR in SMEs. According to previous research the way SMEs conduct their business is dependent on the owner and the personalities of the management. Consequently, there can be a variety of ways that SMEs are engaging in CSR or percieve CSR to be. There are three different communication strategies when communicating CSR towards the stakeholders. It could be interpreted that both companies applied different communication strategies depending on which stakeholder they were communicating with. / Syfte: Syftet med den här uppsatsen är att undersöka hur små och medelstora företag definierar och kommunicerar deras CSR aktiviteter gentemot sina intressenter. Bakgrund: Företagets sociala ansvarstagande, även kallat CSR, är ett omdiskuterat ämne idag. I många fall har CSR agendan integrerats i de flesta stora företag. Emellertid finns det ett krav från statliga organ att sprida denna agenda vidare och engagera små och medelstora företag. Den främsta anledningen för denna ansats beror på att små och medelstora företag är den mest vanligt förekommande verksamheten i Europa och tenderar att vara inflytelserika i lokalsamhället. (Castka, Balzarova, Bamber, Sharp, 2004). Det finns också efterfrågan från olika intressenter att få information om CSR. Forskning inom området CSR kommunikation har mest varit riktad mot större företag. Nyligen, har fokus skiftat till små och medelstora företag och är fortfarande ett område på frammarsch. Forskning inom CSR och CSR kommunikation i små och medelstora företag är begränsat och är ett viktigt område som måste uppmärksammas. Metod: Syftet med den här uppsatsen uppnåddes genom att använda en fallstudie. Två företag; Smålandsbygg och Sköna Hem AB undersöktes. Fyra personer från varje företag blev intervjuade och resultatet från dessa intervjuer analyserades tillsammans med referensramen. Slutsats: Enligt resultaten från studien är det svårt att tillhandahålla en allmän definition när det gäller CSR som kan appliceras i de två företag som var med i studien. Generellt sett kan det vara svårt att ge en allmän definition om CSR i små och medelstora företag överhuvudtaget. Tidigare forskning visar att sättet som små och medelstora företag drivs på, påverkas av ägarna och ledningens personlighet. Följaktligen kan det finnas flera olika variationer om hur små och medelstora företag är engagerade i CSR eller hur de uppfattar CSR konceptet. Det finns tre olika kommunikationsstrategier när man vill kommunicera CSR till olika intressenter. De två företagen i studien applicerade olika kommunikationsstrategier beroende på vilken intressent de kommunicerade med.

Innovation is, in most cases, a necessity for firms in today’s changingmarket place. It has the potential to offer firms numerous advantages,including increased profit and growth. However, innovationis no easy process and there are many barriers and impedimentsto innovation that needs to be overcome in order to efficiently innovate.A study conducted by Vinnova (2007) showed that 18% ofSMEs consider a shortage of qualified personnel as a high barrier toinnovation. How are competence barriers to innovation experienced by smallenterprises in the selected sample? Do competence barriers to innovationvary depending on different firm characteristics and in thatcase how? Which consequences do small enterprises encounter as aresult of facing competence barriers to innovation? Are small enterprisesthat face high competence barriers to innovation more likelyto encounter consequences? The purpose of this research report is to investigate competencebarriers to innovation within small enterprises and the consequencesthese barriers might result in. Competence barriers to innovation are considered moderate in thissample. The highest barrier was shortage of qualified personnel necessaryfor innovation. In general, small enterprises that experienceda higher level of competition also faced higher competence barriersto innovation. The most frequently reported consequences fromfacing competence barriers to innovation were; inability to acceptcertain jobs or contracts, decreased profitability and difficulty in expandingthe business. Small enterprises which face higher competencebarriers to innovation are more likely to encounter consequences.

Today’s globalized economy puts considerable pressure on Small and Medium Enterprises (SMEs) as they are forced to compete in a world where business is often conducted over nations’ borders. This globalization has also led to the creation of free trade areas such as the European Union, where most traditional barriers to trade have been removed. Despite this there still seems to be several, more invisible, barriers that hampers business between member states. We therefore intend to examine how companies in two member states – Lithuania and Sweden – have been affected by such invisible barriers and how they are trying to cope with them. This research has been conducted using following theoretical foundation; Invisible barriers, knowledge, the Uppsala model, psychic distance and networks. Our empirical data have been gathered by holding semi structured interviews with 7 SMEs, this data have then been analyzed with the help of our theoretical foundation. We have found substantial evidence pointing towards the importance of psychic distance and lack of knowledge when explaining the barriers still in existence. Furthermore we have also discovered the duality of knowledge and networks which can be both barriers in themselves as well as ways for companies to work their way around previously mentioned barriers.

Small to medium sized firms in the fashion industry are internationalizing early, which forces them to go through internal changes as they adapt to international operations and develop into larger organizations. This place demands on how such growth is managed and how resources are used within SMEs. Based on the scarce research on SMEs’ internal change process during internationalization and the lack of empirical evidence, the purpose of the study is to investigate the internal change process that takes place in SMEs when they expand and grow through internationalization. By conducting multiple case studies across three Swedish fashion SMEs and collecting data through semi-structured interviews, the purpose is to build a conceptual model explaining the internal change process. Findings revealed that internal change is a constant process of acquiring and combining resources in order to make necessary internal changes that support continued internationalization. The study also reveals the characteristics of SMEs as being inexperienced and having limited resources, and also speed of internationalization, highly affect how the internal change process develops.

The healthcare service sector has recently entered the global arena and many nations sectors has opened up for private initiatives, which is explained by the rapid development and structural changes within the industry. However, regardless of considerable interest in the area among academics, very little has been concluded in terms of investigating internationalization of healthcare related services. The purpose of this study is to contribute with an enriched understanding regarding how Swedish medical service SMEs internationalize and what factors influence how - and in what way - the process unfolds. A conceptual model is developed, extending the theoretical discussion by integrating established SME and entrepreneurship literature with extant IB literature relevant for political salient industries. Conducting an exploratory multiple case study, rich empirical data is collected and analyzed in the light of the conceptual model. The research findings indicate that knowledge, networks, and institutional factors influence how the internationalization process of medical service SMEs unfolds to a large extent. The research contributes by concluding that the nature of the service as well as the home market institutional context constitute pivotal influential factors on the firms’ internationalization process and are added to the refined conceptual framework.

Abstract This research explores the problems of resource allocation during the process of internationalization by small and medium-sized manufacturing firms. The literature largely portrays a positive view of internationalization with respect to increased firm performance or growth. However, particularly for Small and Medium-Sized Enterprises(SMEs), growth through internationalization increases uncertainty and may jeopardize firm performance and even threaten survival of the firm. The literature indicates that some SMEs fail during the process of expanding to foreign markets (Brewer 1981;Ramaswamy 1992; Mudambi and Zahra 2007). Many of these failures are due, in part,to the challenges of allocating limited resources during and after internationalization(Chen and Hsu 2009). Given the challenge of internationalizing, this research examines the influence of resource allocation on firm performance with the aim of providing recommendations on how entrepreneurs can make better resource allocation decisions that in turn may lead to improved performance. To address the problem of allocation of limited resources during and after internationalization, theoretical propositions are developed based on modern portfolio-theory (Markowitz 1952; 1959; 1991) that explains the risk-return tradeoffs with regards to resource allocation to domestic, U.S., and foreign markets and possible effects on firm performance. This research applies a multiple case-study approach based on critical realism, a qualitative philosophical research paradigm. Data collection is through in-depth interviews with executives of twenty-two small- and medium-sized manufacturing firms located in Canada. Within-case and cross-case analyses findings are used to confirm or modify the propositions, resulting in a descriptive model that best explains resource allocation decisions and the effects on performance. The findings indicate that resource allocations to domestic, U.S., and foreign markets have different contributions to overall firm performance. However, the way in which resource allocation trade-offs are decided between these markets is largely dependent on the firms or owners/manager’s disposition to risks and returns. Findings from this research also show that decisions by firm managers to allocate resources to a particular market depend on their assessment or anticipation of risks and the potential mitigation strategies that are required in order to maximize returns. This, consequently, determines the firm’s performance during the process of internationalization. This research contributes to the literature in international entrepreneurship, management of technology, and decision analysis. While there is an extensive body of literature that focuses on the output of internationalization (i.e., where, when, and how firms export their products), few studies have specifically examined the inputs that make this happen (one of these being the allocation of resources). Rugman et al. (2008) examines the resource allocation decision between domestic and foreign markets for Multinational Enterprises (MNEs) and the impact on firm performance. No known study has specifically explored resource allocation decisions between domestic, U.S., and foreign markets for SMEs and the influence on firm performance. This research fills the identified gap by making a significant theoretical contribution to this field by adopting portfolio theory to the challenge of allocating resources between domestic and foreign markets.