FORMULATING AND CONDUCTING INTERNATIONAL STRATEGIES IN EGYPTIAN SMES IN AN UNSTABLE ECONOMIC AND POLITICAL SITUATION

Year 2016, Volume: 2 Issue: 5, 603 - 611, 26.08.2016

Hanan Gouda

Abstract

International joint venture (IJV) longevity and stability are frequently used as indicators of collaborative success. The SMEs with wide target to the global market can pursue different international strategic approaches to the targeted markets. The international strategies distinguish three types of globally oriented strategies: the global, the multinational and the multifocal strategies while instability factors influence the organizational behaviours and could have a negative impact on the conducting of the international strategy and the achievement of its goals.

Based on this fact, formulating and conducting an international strategy in an unstable economic and political situation requires either the good knowledge of international competitive rules in an industry and its segments with a high consideration and comprehension of the economic and political situation, or an adapted globalization model capable to face the common challenges of instability.

This paper synthesizes the theoretical and methodological rationales for this approach, taking example of some of the Egyptian SMEs with implications for theory development. A corporate strategy perspective on IJVs is provided, which proposes that the effects of IJV dynamics are meaningfully considered at the parent firm level, and the impact of IJV longevity versus instability depends upon factors such as: the firm’s collaborative objectives, post exchange conditions, identification of the strategic issues in different categories of countries, the type of actions to take and the integration and coordination of activities and the IJV's specific governance trajectory. The analysis aids in interpreting prior research and points to the value of more integrative, contingency perspectives on the strategy of globalization and their evolution.

Keywords: International strategy, SMEs, joint venture, instability, organizational behavior, globalization models, success.

Keywords

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