Traditional Versus Born-Global Theories and the Internationalisation of Halal Food SMEs from an SSMC: Conceptual Framework and New Propositions

Abstract

An integrated framework for the internationalisation process of halal meat manufacturing small and medium enterprises (SMEs) from a small-sized Muslim country (SSMC) hardly exists, despite the importance of internationalisation for firm performance and economic growth. The main aim of this study is to propose a framework for the role of traditional versus born-global theories in explaining the internationalisation process of halal meat SMEs from SSMCs. Specific weightage is given to the importance of small-sized country factors and halal food industry factors in influencing internationalisation. On the basis of a critical literature review, we develop the following novel propositions. First, halal meat SMEs are more likely experiencing the fast born-global model of inward internationalisation by importing raw meat from large-sized countries, due to the shortage of skilled manual labour in their home country needed to produce halal meat at competitive prices. Second, the psychic distance is less relevant for the inward internationalisation of halal meat SMEs from SSMCs to large-sized foreign countries, because large countries have labour and economies of scale advantages for producing halal meat. Third, halal food SMEs are more likely to experience the slow/incremental Uppsala model of outward internationalisation because of the requirement for obtaining halal certification both at home and from host countries, which require time. Fourth, the psychic distance is more relevant for outward internationalisation because halal meat SMEs from SSMCs are more likely to export to Muslim countries. Finally, inward internationalisation precedes outward internationalisation for halal meat SMEs from SSMCs. Implications are drawn for theory, future research and policy/practice.