Going global : Institutional barriers to internationalism for smaller Indian exporters

This exploratory study provides insight into the major institutional barriers to internationalisation for smaller firms from one of the two big emerging markets (BEMs) in the Asia Pacific rim: India, the other being China. Firms in transition economies face institutional barriers such as government interference, corruption and rapid environmental change due to the presence of underdeveloped institutions. In contrast, firms from developed markets operate in an institutional environment that can be described as more suitable to their growth and expansion. The current study extends knowledge by exploring the major institutional barriers to internationalisation for smaller exporting firms from a BEM perspective relying on institutional theory as a key theoretical underpinning. The study incorporates a qualitative research design based on 12 Indian exporters. Findings reveal that smaller Indian exporters face barriers to internationalisation in securing specific targeted information from institutions such as local chambers of commerce forcing firms to rely on network contacts in order to enter overseas markets. Restrictive government policies were also found to hinder the internationalisation of firms that sought to expand into the international market prior to the liberalisation of the Indian economy.