Influence of Information Systems Strategic Orientation on SMEs’ Perception of Export Barriers

Internationalization of Small and Medium Enterprises (SMEs) drives economic development at national, regional and international levels. In the globalized business environment, international entrepreneurship enables SMEs to become ‘born global’. These born global SMEs also face a number of external and internal obstacles and encounter a substantial number of barriers in the process of internationalization. This research study attempts to examine the impact of strategic orientation of their information systems on the perception of internationalization export barriers. A mail survey with a structured questionnaire was conducted among exporters in an industrial cluster of India. The collected data from the valid 127 responses were then analyzed using structural equation modeling. The results obtained revealed a significant negative relationship between the perception of these SMEs towards internationalization export barriers and their information systems strategic orientation. The empirical evidence from this study shows how information systems and their strategic orientation could not only facilitate SMEs to overcome their internationalization export barriers, but also enable them to become internationally competitive in emerging economies. This study emphasizes the need for focusing on the Information Systems strategic management practices in the SMEs, particularly in the context of their internationalization.