Cloud computing utilization and mitigation of informational and marketing barriers of the SMEs from the emerging markets: Evidence from Iran and Turkey

Abstract This study seeks to investigate the effectiveness of Cloud Computing Utilization (CCU) in the mitigation of informational and marketing barriers for SMEs from the Emerging Market-Countries (EM-SMEs). A quantitative-research methodology was applied to collect data by using self-administered questionnaires from top managers of 227 SMEs based in Iran and Turkey. The study contributes theoretically to both small business and international business literature by developing a new classification of the internationalization barriers that EM-SMEs face, and proposing a series of cloud computing (CC) solutions for mitigating these barriers, resulting in the creation and testing of a new model. The empirical findings confirm that CCU can help EM-SMEs to mitigate a series of informational and marketing barriers. The key practical contributions of the study offer insights to both EM-SMEs and Cloud-Service-Providers (CSPs) on the extent to which CCU is effective in mitigating the internationalization barriers faced by EM-SMEs.

[1]  Peter E.D. Love,et al.  Risks and rewards of cloud computing in the UK public sector: A reflection on three Organisational case studies , 2017, Information Systems Frontiers.

[2]  Tage Koed Madsen,et al.  Differences and similarities between born globals and other types of exporters , 2000 .

[3]  Rubén Fernández-Ortiz,et al.  Why Don't We Use the Same Export Barrier Measurement Scale? An Empirical Analysis in Small and Medium‐Sized Enterprises , 2010 .

[4]  J. Mathews.  Dragon multinationals: New players in 21st century globalization , 2006 .

[5]  Leonidas C. Leonidou,et al.  Barriers to export management: an organizational and internationalization analysis , 2000 .

[6]  Bong Gyou Lee,et al.  Marketing insights for mobile advertising and consumer segmentation in the cloud era: A Q–R hybrid methodology and practices , 2015 .

[7]  Jörg Blasius,et al.  The Effects of Cultural Distance, Free Trade Agreements, and Protectionism on Perceived Export Barriers , 2008 .

[8]  Louis Raymond,et al.  International Journal of Information Management Information Management for the Internationalization of Smes: an Exploratory Study Based on a Strategic Alignment Perspective , 2022 .

[9]  P. P. McDougall,et al.  Defining International Entrepreneurship and Modeling the Speed of Internationalization , 2005 .

[10]  Roman Golov,et al.  Obstacles to foreign direct investment in Russia , 2000 .

[11]  Michael R. Mullen,et al.  Structural equation modelling: guidelines for determining model fit , 2008 .

[12]  Ø. Moen,et al.  Born Global or Gradual Global? Examining the Export Behavior of Small and Medium-Sized Enterprises , 2002 .

[13]  J. Johanson,et al.  The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments , 1977 .

[14]  Jim Bell,et al.  A comparative study of the export problems of small computer software exporters in Finland, Ireland and Norway , 1997 .

[15]  Yen-Chun Jim Wu,et al.  Entrepreneurship through the platform strategy in the digital era: Insights and research opportunities , 2019, Comput. Hum. Behav..

[16]  Mike W. Peng,et al.  Strategy Research in Emerging Economies: Challenging the Conventional Wisdom , 2005 .

[17]  Colin C. Williams,et al.  Beyond Legitimate Entrepreneurship: The Prevalence of Off-the-Books Entrepreneurs in Ukraine , 2009 .

[18]  G. Knight,et al.  Innovation, organizational capabilities, and the born-global firm , 2004 .

[19]  Dr Martin Lipscomb.  Senior Lecturer , 2002 .

[20]  Subhajyoti Bandyopadhyay,et al.  Cloud computing - The business perspective , 2011, Decis. Support Syst..

[21]  José Pla-Barber,et al.  Accelerated internationalisation: evidence from a late investor country , 2006 .

[22]  Michelle Wye Leng Fong,et al.  Technology Leapfrogging for Developing Countries , 2009 .

[23]  Ø. Moen,et al.  Executive Insights: Use of the Internet in International Marketing: A Case Study of Small Computer Software Firms , 2003 .

[24]  G. Knight,et al.  Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective , 2007 .

[25]  L. Welch,et al.  Internationalization: Evolution of a Concept , 1988 .

[26]  R. Abramson,et al.  Tricks and traps in structural equation modelling: a GEM Australia example using AMOS graphics , 2005 .

[27]  Monika Petraite,et al.  Systemic Factors for the Formation of a Born Global R&D Intensive Firm , 2013 .

[28]  S. Tamer Cavusgil,et al.  Born Global Firms: A New International Enterprise , 2009 .

[29]  Rudolf R. Sinkovics,et al.  Drivers and Performance Outcomes of Relationship Learning for Suppliers in Cross-Border Customer–Supplier Relationships: The Role of Communication Culture , 2010 .

[30]  John Kuada,et al.  Cross-Cultural Interactions and Changing Management Practices in Africa: A Hybrid Management Perspective , 2006 .

[31]  Jitesh J. Thakkar.  Introduction to Structural Equation Modelling , 2020 .

[32]  Murat Hakan Altıntaş,et al.  The effects of export barriers on perceived export performance: An empirical research on SMEs in Turkey , 2007 .

[33]  Man Zhang,et al.  International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China , 2009 .

[34]  Philip E. T. Lewis,et al.  Research Methods for Business Students , 2006 .

[35]  Geoffrey N. Soutar,et al.  Combined effects of incentives and barriers on firms' export decisions , 1996 .

[36]  P. Ellis,et al.  Marketing in Cyberspace: What Factors Drive E-Commerce Adoption? , 2004 .

[37]  Jim Bell,et al.  ‘New-wave’ global firms: Web 2.0 and SME internationalisation , 2010 .

[38]  Dothang Truong.  How Cloud Computing Enhances Competitive Advantages: A Research Model for Small Businesses , 2010 .

[39]  CompTIA.  What is SaaS , 2020 .

[40]  Don Tapscott,et al.  Grown Up Digital: How the Net Generation is Changing Your World , 2008 .

[41]  David L. Dean,et al.  Revisiting firm characteristics, strategy, and export performance relationship , 2000 .

[42]  Eileen Fischer,et al.  International entrepreneurship in internet-enabled markets , 2011 .

[43]  Hung Kyu Kim,et al.  Consumer Segmentation Based on Smart Device Users’ Perception of Mobile Advertising , 2011 .

[44]  Pat H. Dickson,et al.  The Influence of National Culture on the Formation of Technology Alliances by Entrepreneurial Firms , 2000 .

[45]  Craig C Julian,et al.  The Impact of Barriers to Export on Export Marketing Performance , 2005 .

[46]  Sonia Su¡rez-Ortega,et al.  Export Barriers , 2003 .

[47]  Victor Jupp,et al.  Data Collection and Analysis , 2012, Violent Resistance.

[48]  B. Tabachnick,et al.  Using Multivariate Statistics , 1983 .

[49]  Neal Leavitt,et al.  Is Cloud Computing Really Ready for Prime Time? , 2009, Computer.

[50]  Glen Hornby,et al.  Perceptions of Export Barriers and Cultural Issues: The SME E-Commerce Experience , 2002, J. Electron. Commer. Res..

[51]  Benjamin M. Oviatt,et al.  A framework for understanding accelerated international entrepreneurship , 1999 .

[52]  Arjan Durresi,et al.  Cloud computing: networking and communication challenges , 2012, IEEE Commun. Mag..

[53]  Andreu Blesa,et al.  The influence of marketing capabilities on economic international performance , 2008 .

[54]  Temi Abimbola,et al.  The effects of entrepreneurial marketing on born global performance , 2009 .

[55]  T. Madsen,et al.  The internationalization of Born Globals: An evolutionary process? , 1997 .

[56]  Rudolf R. Sinkovics,et al.  Information technology and organizational performance within international business to business relationships: A review and an integrated conceptual framework , 2008 .

[57]  Randy H. Katz,et al.  A view of cloud computing , 2010, CACM.

[58]  Zahir Irani,et al.  Evaluating the use and impact of Web 2.0 technologies in local government , 2015, Gov. Inf. Q..

[59]  Rudolf R. Sinkovics,et al.  ICT and MNE reorganisation: the paradox of control , 2007 .

[60]  J. Hair.  Multivariate data analysis , 1972 .

[61]  Ian Fillis,et al.  Barriers to internationalisation , 2002 .

[62]  Z. Irani,et al.  Critical analysis of Big Data challenges and analytical methods , 2017 .

[63]  Shailaja Venkatsubramanyan,et al.  ICT Leap-frogging Enabled by Cloud Computing for Emerging Economies: A Case on Streamlining India’s Grain Supply Chains , 2012 .

[64]  Martin Johanson,et al.  Speed of SME Internationalization and Performance , 2015, Management International Review.

[65]  Nabil Sultan,et al.  loud computing for education : A new dawn ? , 2009 .

[66]  Deeksha A. Singh,et al.  Export Performance of Emerging Market Firms , 2009 .

[67]  Dave Crick,et al.  The Decision to Discontinue Exporting: SMEs in Two U.K. Trade Sectors , 2002 .

[68]  Angela da Rocha,et al.  Perception of export barriers to Mercosur by Brazilian firms , 2001 .

[69]  N. Coviello,et al.  The resource dynamics of international new venture networks , 2007 .

[70]  Khalil Al-Hyari,et al.  Barriers to internationalisation in SMEs: evidence from Jordan , 2012 .

[71]  Arumugam Seetharaman,et al.  The usage and adoption of cloud computing by small and medium businesses , 2013, Int. J. Inf. Manag..

[72]  C. Christopher Baughn,et al.  SME exporting challenges in transitional and developed economies , 2006 .

[73]  José Carlos Pinho,et al.  Exporting barriers: Insights from Portuguese small- and medium-sized exporters and non-exporters , 2010 .

[74]  F. Piller,et al.  Reducing the risks of new product development , 2006 .

[75]  George Tesar,et al.  Longitudinal study of exporters and nonexporters: A focus on smaller manufacturing enterprises , 1998 .

[76]  Louis Raymond,et al.  The Assimilation of E-business in Manufacturing SMEs: Determinants and Effects on Growth and Internationalization , 2005, Electron. Mark..

[77]  Xi Chen,et al.  Cold chain logistics system based on cloud computing , 2012, Concurr. Comput. Pract. Exp..

[78]  R. Rajendran,et al.  Influence of Information Systems Strategic Orientation on SMEs’ Perception of Export Barriers , 2019, Entrepreneurship and Development in South Asia: Longitudinal Narratives.

[79]  Leonidas C. Leonidou,et al.  An Analysis of the Barriers Hindering Small Business Export Development , 2004 .

[80]  James C. Anderson,et al.  The effect of sampling error on convergence, improper solutions, and goodness-of-fit indices for maximum likelihood confirmatory factor analysis , 1984 .

[81]  Tsung-Yin Ou,et al.  The Strategic Research on Integrating Service Model for SMEs Cloud Supply Chain in Taiwan , 2014, Int. J. Electron. Bus. Manag..

[82]  Ying-Han Chen,et al.  Effect of digital transformation on organisational performance of SMEs: Evidence from the Taiwanese textile industry's web portal , 2016, Internet Res..

[83]  Gyorgy Todoran,et al.  CLOUD COMPUTING AND BIG DATA AS CONVERGENT TECHNOLOGIES FOR RETAIL PRICING STRATEGIES OF SMEs , 2014 .

[84]  Eldrede Kahiya.  Export barriers and path to internationalization: A comparison of conventional enterprises and international new ventures , 2013 .

[85]  Andy P. Field,et al.  Discovering Statistics Using SPSS , 2000 .

[86]  Susana Pérez López,et al.  Information Technology Competency, Knowledge Processes and Firm Performance , 2012, Ind. Manag. Data Syst..

[87]  Ikhlaas Gurrib,et al.  Explaining the Internationalization Process of Malaysian Service Firms , 2010 .

[88]  Patrick De Pelsmacker,et al.  Marketing Research with SPSS , 2008 .

[89]  P. P. McDougall,et al.  Toward a theory of international new ventures , 1994 .

[90]  Luis Rodero-Merino,et al.  A break in the clouds: towards a cloud definition , 2008, CCRV.

[91]  Rudolf R. Sinkovics,et al.  Do born global SMEs reap more benefits from ICT use than other internationalizing small firms , 2012 .

[92]  Jenny Darroch,et al.  Barriers to Internationalisation: A Study of Entrepreneurial New Ventures in New Zealand , 2004 .

[93]  Daekwan Kim,et al.  The internationalization of US Internet portals: does it fit the process model of internationalization? , 2003 .

[94]  Donald R. Cooper,et al.  Business Research Methods , 1980 .

[95]  Tarun Kanti Bose.  Critical Success Factors of SME Internationalization , 2016 .

[96]  Rubén Fernández Ortiz,et al.  Why don't we use the same export barrier measurement scale? An empirical analysis in small and medium-sized enterprises , 2010 .

[97]  Robert L. Grossman,et al.  The Case for Cloud Computing , 2009, IT Professional.

[98]  Tsung-Hsien Kuo,et al.  The mediate effect of learning and knowledge on organizational performance , 2007, Ind. Manag. Data Syst..

[99]  Piyush Verma,et al.  Exploring suitability of cloud computing for small and medium-sized enterprises in India , 2017 .

[100]  Bradley R. Barnes,et al.  Investigating the Export Marketing Activity of SMEs Operating in International Healthcare Markets , 2006 .

[101]  Jay B. Barney,et al.  How entrepreneurial firms can benefit from alliances with large partners , 2001 .

[102]  Timothy L. Wilson,et al.  Internetworked after-sales service , 2004 .

[103]  Luciano Ciravegna,et al.  Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry , 2009 .

[104]  Erik Elmroth,et al.  The Cloud Supply Chain : A Framework for Information, Monitoring, Accounting and Billing , 2011, CloudCom 2011.

[105]  Perry R. Hinton.  SPSS Explained , 2004 .

[106]  Tapan S. Parikh.  Engineering rural development , 2009, CACM.

[107]  R. Gulati.  Alliances and networks , 1998 .