Jordanian Small and Medium Enterprises (SMEs) Barriers to Enter into Foreign Markets
The study identified the key barriers that confront Jordanian SMEs to inter into foreign markets. A field study was conducted to collect data from a sample of (60) SMEs foreign trade units, represent Jordanian SMEs, engaged in exporting into foreign markets, or strive to enter into those markets. The most important findings were: language difference between home and host country, difference in social approaches between home and host country, insufficient R&D investments, legal procedural complexity in the home country, lack of express service within the home economy, corruption in the home economy have a significant effect on Jordanian SMEs entry into foreign markets. At individual institutional barrier level, the difference in social approaches is the most important barrier for Jordanian SMEs, followed by legal procedural complexity. The findings of the paper correspond with previous research findings on legal procedural complexity in the home country, differences in social approach between participating firms also increase complexity in the exporting process and hence, affect entry into foreign markets, language barriers indicate lower language ability of home firm communication flow with its foreign parallel one. Lack of express service within the home economy, corruption, R&D investments are also work as constraints to SMEs entry into foreign markets. Researcher presented a set of recommendations, the most important ones were: Investing and supporting Jordanian SMEs more actively is the most realistic strategy as the country, as many other emerging countries, suffer from an inadequate supply of capital to support growth of larger industries. Jordanian SMEs owners and managers needed to be responsive about the different entry modes available to firms in the context of the operating environment. The policymakers along with other stakeholders should address and support Jordanian SMEs to overcome those barriers, and facilitate a smooth internationalization process to ensure the expected pace of national development. The identification of barriers that confront Jordanian SMEs to enter into a foreign market is important, since they, like most other SMEs in an emerging economy, cannot undertake independent research considering resource limitation, therefore, Jordanian government along with other formal authorities should undertake and finance this independent research.
Keywords - Market entry, SMEs, barriers, Emerging economy.