Internationalization is a topic of much importance because of its complex nature. In this study, the focus is on the initial challenges that the SMEs have to face when they go international. The literature suggests that, due to the simple structure and comparatively weaker financial base of SMEs, they face many hurdles when entering into a foreign market. The purpose of the thesis is to investigate what challenges a Swedish and a Balangedishi SME are faced with in the initial stage of the internationalization process. We have used a qualitative method and collected empirical data through interviews. For the analysis, we use a theoretical framework that emphasizes the Uppsala Internationali-zation Model. Our main results show that the SMEs suffer because of the challenges to collect appropriate information and to reduce cultural differences. With this thesis we hope to contribute with a new understanding of challenges that can help the SME to better cope with challenges in practice when involving in internationalization.

The growth of small- and medium-sized enterprises (SME) accounts for a disproportionate share of employment, economic growth and prosperity (Adelino et al., 2017). However, it has been argued that SMEs suffer from severe information asymmetry and other types of market frictions and, thus, are more likely subject to credit constraints (Berger and Udell, 1998). This PhD thesis addresses this issue from three different, yet interrelated, perspectives: the relationship between SME growth and credit constraints; the impacts of firm characteristics on the full scope of the SME debt acquisition process; and the effectiveness of a credit guarantee scheme (CGS). The latter is a widely-used form of policy initiative that seeks to address SME credit constraints. Accordingly, this thesis comprises three chapters and draws on empirical analyses of unique datasets from Statistics Canada surveys, conducted from 2011 to 2017. The first chapter of this dissertation investigates the impacts of demand- and supply-side credit constraints on SME growth. It finds that evidence consistent with the premise that growth-oriented firms that apply and obtain either term loans or trade credit experience higher short-term growth than demand-constrained and supply-constrained firms. In the longer term, growth-oriented firms that apply and obtain term loans experience higher growth in revenues than supply-constrained firms. The second chapter estimates the three stages of the SME debt acquisition process (i.e., recognizing a need for capital, applying for a loan, and being approved for a loan) using a trivariate probit model that accounts for the correlation among the three stages of the SME debt acquisition process. It finds that while innovators and exporters are relatively more likely to need external financing, they do not face demand- or supply-side constraints. Conversely, firms majority-owned by women and members of visible minority groups are more likely to need credit, are more likely to be demand-constrained and are subject to statistical discrimination when seeking credit. When changing the definition of demand-constrained borrowers to a more narrow definition, innovators are relatively more likely to apply for needed financing, exporters are relatively less likely to do so, and visible minorities are relatively just as likely to apply for needed financing. The third chapter proposes a new means of assessing the economic impact of the Canadian CGS, the Canada Small Business Financing (CSBF) program. The Canadian CGS is a mechanism by which the Government of Canada guarantees a specific portion of a loan in the event of default. The new measure improves on an existing measure that seeks to evaluate the performance of CGSs: the incrementality rate (a measure that evaluates the extent to which loans advanced under the CGS program would not otherwise have been approved by lenders—the counterfactual). The new measure developed in this chapter gauges lenders’ moral hazard; that is, the extent to which lenders take excessive risks by betting on overly risky loans because they know that the losses would be covered by the program. This cannot be captured by the incrementality rate. The chapter reports on the evaluation of the CSBF performance based on both measures, the traditional incrementality rate and the new measure of lenders’ excess risk taking. It finds that the CSBF is not incremental, with a low incrementality rate of 5.3 per cent. The findings also suggest that lenders do not engage in excessive risk-taking behavior, as evidenced by an almost zero risk-taking rate. While Canadian banks do not particularly exhibit a willingness to allocate guaranteed loans to women and visible minorities (the groups of firms that are subject to statistical discrimination per Chapter II), they tend to allocate more guaranteed loans to growth-oriented borrowers, consistent with the CSBF’s objective to support the growth of small businesses (ISED Canada, 2016). Finally, the CSBF incrementality rate does not vary significantly between recession (following the 2007-2008 crisis) and post-recession time periods.

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Syftet med denna uppsats är att öka förståelsen för SME företagens val av finansiering och val av kapitalbudgeteringsteknik.  Vidare är syftet att se hur finansieringsvalet och valet av kapitalbudgeteringsteknik förhåller sig till varandra. Detta är viktigt av anledningen att SME företagen bidrar till sysselsättningsskapandet i samhället, och finansieringsvalet och användandet av kapitalbudgeteringstekniker kan vara fundamentala för deras bidrag. För att erhålla en djupare förståelse har ett kvalitativt tillvägagångssätt valts där sju tillverkande SME företag i Sverige intervjuats. De huvudsakliga resultaten är följande, (1) SME företag använder mestadels återinvesterat kapital och undviker att finansiera investeringar från utomstående finansiella institutioner. Vidare, (2) användes mindre sofistikerade kapitalbudgeteringstekniker oavsett valet av finansieringskälla. Däremot, (3) upplever SME företagen en finansiell press från finansiella institutioner när de lider av likviditetsbegränsningar. Detta resulterar i att SME företagen lägger en payback period på investeringen för att tillgodose kraven från de finansiella institutionerna. Denna uppsats avslutas med riktlinjer för framtida forskning. / The purpose of this thesis is to increase understanding of the financial choices made by SMEs and the choice of capital budgeting techniques. Furthermore, to see if the choice of financing have an influence on the choice of capital budgeting technique. This is important since SMEs contribute to employment in the society and the financial choice and use of capital budgeting techniques could be crucial to their contribution. To capture in-depth understanding, this thesis have used a qualitative approach and interviewed seven manufacturing SMEs located in Sweden. The main findings are the following, (1) SMEs mainly use reinvested capital and avoid financing if possible from financial institutions. Furthermore, (2) less sophisticated capital budgeting techniques was used regardless of financial choice. However, (3) when SMEs suffer from liquidity problems they express to feel financial pressure from financial institutions. Which leads to SMEs putting a payback period on the investment to satisfy the demands from financial institutions. This thesis concludes with guidelines for future research.

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Enterprise resource planning (ERP) systems are considered the price of entry in today's business environment, and the number of small and medium-sized enterprises (SME) retiring legacy systems in favor of ERP systems is increasing exponentially. However, there is a lack of knowledge and awareness of ERP systems and their potential benefit and effect on performance, and overall value to SMEs. While ERP adoption costs and potential benefits are high, it is not apparent whether the end result will translate into higher productivity for SMEs. The goal of this study is to evaluate the benefits that accrue to a firm on adoption of an ERP system. In the context of SME, a production function approach is used to assess benefits over short and long term. In addition to the production function approach, a variety of related methods such as those based on stock market valuation and Tobin's Q are examined. Data were collected using the well-known CRSP datasets for SMEs. Analysis of data suggests that ERP implementation has no effect on firm's performance as measured by profit margins, Tobin's Q ratio and Labor productivity. In fact, ERP investments do not yield noticeable improvements on the performance measures even four years after implementation. Weaknesses in data suggest that the conclusion may be seen as tentative. The results of this research study, added value to the academic knowledge base by helping to understand the effects ERPs have on SMEs overall performance.

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This thesis is concerned with the topic of the strategic management of technology as a source of competitive advantage in small high tech firms. The main objectives of this thesis were: to examine the corporate and technology strategy formulation processes within small high tech firms; to identify any change in these processes as the business and its core technologies mature; and to explore the role of the technical entrepreneur in initiating a strategic orientation within such firms. Empirical research proceeded in two phases. Phase One involved a postal survey based upon 519 small high tech firms located in UK science parks. 30 respondent firms were selected for Phase Two of empirical research, where in-depth company interviews were employed to investigate further the phenomena under scrutiny. Successful small high tech firms exhibit a strategic transformation over their life cycle. More formalised strategic management processes are implemented within such firms to support the organisation's evolution from an inward-looking orientation at inception focusing upon technological possibilities generated through R&D efforts, towards an outward orientation as core technologies mature, emphasising the need more closely to identify market opportunities in order to guide R&D activity. This research has confirmed that the professional orientation of company directors will determine whether technological considerations are subsumed within strategic planning processes, or whether they implicitly drive business activities. The required strategic reorientation of the business is unlikely to be achieved where management skills remain focused within narrow technical spheres and thus technological considerations dominate the strategy formulation process throughout each life cycle stage. Ultimately, the key determinant of success in the small high tech firm will be the ability of the technical entrepreneur to initiate a strategic orientation within the firm; this will require that he adapts philosphically and managerially as the firm grows, as core technologies mature and as marketing imperatives become the predominant force within the firm's chosen industry.

The aim of the study is to investigate how owner-managers of Chinese SMEs explore and exploit knowledge while growing SMEs in the spirit of Wu Wei. SME growth has been an increasingly important topic, where there is an important link between SME leadership, knowledge and growth. However, a large body of existing research treats knowledge as a static or reified asset or resource such that these studies are mainly concerned with how to create, acquire, transfer or manage knowledge. Following that, the research methods tend to be dominated by quantitative analysis, and weighs towards large organizations in developed economies. Drawing on the data collected in China, this study employs a mixed-methods approach by administering 103 surveys, wherefrom nine owner-managers are isolated for in-depth interviews at three business stages of SMEs (micro, small and medium). By attending to three dimensions (genuine Wu Wei, You Wei and Wu Bu Wei) of a Chinese Daoist Wu Wei perspective, it re-examines the link between SME leadership, knowledge and firm growth. This empirically-derived work shows evidence of subtle changes embedded in the growing process: While owner-managers stress keeping inherent openness to explore knowledge (genuine Wu Wei) and strategically exploit knowledge deployed in their everyday leadership practice (You Wei), growth evolves as a spontaneous and continuous accomplishment (Wu Bu Wei). By adopting a Wu Wei perspective, this study makes distinctive contributions to the understanding of leadership, knowledge and growth, where leadership and knowledge co-evolve and disseminate in the dynamic processes of growing as ‘leadership becoming’ rather than ‘knowledge leadership’. Whilst fostering the co-flow and co-evolution of leading, knowing and growing, the owner-managers undertake the role of knowledge generalist, knowledge supervisor and knowledge mentor within micro, small and medium firms.