A critical Review of Yehualashet and Germinah (2015)

Internationalization drivers of small and medium sized

manufacturing enterprises in Ethiopia: the case of leather and leather
products industry

Reviewed by
Adisu Negash adisuneg2@gmail.com

August, 2022
Addis Ababa, Ethiopia

[0]
 The abstract:

The abstract is perfectly written. First, it sufficiently provides a summary of the content of the

research. It shows the objective of the study. Moreover, it explains why the research was carried

out and that’s because much research work has not been done to comprehend the process of firm

internationalization in Ethiopia. It also mentions the main findings of the study and its

significance.

The introduction:   

 Briefly, although the introduction is too short, it is precise, clear and sufficient to understand

what the researchers intends to examine in this study. It shows the objective of the study to

explore determinant factors that motivate business internationalization among Ethiopian SMEs in

the manufacturing industry and to identify the pattern and mode of entry followed by Ethiopian

SMEs in the manufacturing industry to expand their business in foreign markets. However, it

does not have some clarification regarding what does internationalization means and how it

processes. And also the conceptual or theoretical framework has not been identified. In addition,

tables and graphs presented in was not clear and understandable fashion. Although type of data

and statistical analysis method was clearly indicated, and it appropriate, numbers of sample

participated was clear, and it would be better clarifying the technics of sampling and the total

population from which sampling was taken.

[1]
 1. Summary of the article focusing on the following major issues

Internationalization drivers of small and medium sized manufacturing enterprises in Ethiopia: the
case of leather and leather products industry: International Research Journal of Problems and
Perspectives in Management, Volume 13, Issue 4, 2015 The article of “Internationalization
drivers of small and medium sized manufacturing enterprises in Ethiopia: the case of leather and
leather products industry” was authored in 2015 by Yehualashet Demeke, Ph.D., Assistant
Professor-College of Business and Economics, Arsi University, Assela, Ethiopia and Germinah
Evelyn Chiloane- Tsoka D.Com. in Entrepreneurship, Department of Business Management,
Preller Street, Muckleneuk Ridge, Pretoria, South Africa. The article was originally published on
International Research Journal of Problems and Perspectives in Management in 2015.

The aim of the study is to show the most important factors driving internationalization process of
Ethiopian SMEs operating in leather and leather products industry located in Addis Ababa.
When we see the research methodology, the study is explanatory research type and has used firm
export propensity as dependent variable and export driving factors as explanatory variables.
Mixed research design approach through survey and semi-structured interviews and about forty
four secondary sources of data are used to obtain the required data and stratified random
sampling technique is used to recruit the required respondents. The study has used adequate and
reliable data and makes use of factor analysis and binary logistic regression analysis to test
hypotheses. Based on the research findings, the writers argue the internal and external factors
influencing internationalization of Ethiopian SMEs in manufacturing industry are managerial
factors; financial stimuli; research and development factor; marketing related factors, production
related factors, foreign market stimuli, intermediaries’ related stimuli, competition related,
domestic government stimuli, foreign government stimuli and domestic market stimuli. The
study shows that SMEs join international market due to external pull factors instead of internal
push factors. They have become involved in international business activities: external pull
factors from domestic and foreign governments, market factors, industrial factors and internal
push factors as entrepreneurial orientation of managers, availability of resources to run export
operations.

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 2. Evaluation of the article

A country to be benefitted from SMEs through international governments, international agencies

and the private sector must collaboratively work together, government need to encourage export
policy which create enabling environment for export promotion in order to mitigate barriers
occurred due to, competition policy, legislative and regulatory frameworks, telecommunications
infrastructure and research. In addition to this, the quality of the export items needs improvement
and productivity needs to be maximized and to do that the government needs to make
arrangements and agreements for Ethiopian SMEs to share the experience of the developed
countries’ SMEs. The study also has indicated the need of further research areas to understand
the dynamics of SMEs internationalization drivers which should consider comparative study
which could benefit from cross country comparisons in this respect and worth investigating to
explore patterns of similarity and differences between the internationalization process of
Ethiopia SMEs and that of SMEs from other developing economies.

3. Comments on strengths and weaknesses of the article

From the above findings and discussions of the study we can understand that the study focused
on export as means for SMEs penetration in to the global market. Other global market entry
modes of joint venture, FDI, management contracting and the like were not treated in this study.
The study only focused on one aspect of firm internationalization (outward internationalization
through export). However, the study has great contribution for Ethiopia since we are giving
much emphasis for the development our economy starting from SMEs for the future major
industries. The government and SMEs firm owners can learn much from the study and take their
assignment for further improvements and the study is highly related our course, financial
management. Therefore the following strengths and weaknesses of the article were identified

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Strength

 The findings are linked back to the literature review and the strengths and limitations
of the study were including generalizability discussed. Also in this article a
recommendation for future research was made?
 Type of data and statistical analysis method was clearly indicated, and it appropriate;
numbers of sample participated was clear.
 All books, journals and other media alluded to in the study were accurately
referenced.
 The article is well written- concise and grammatically correct. it is well laid out and
organized.

Weakness

 The technics of sampling was not clearly indicated and the total population from
which sampling was taken not indicated.
 The conceptual or theoretical framework has not been identified.
 Tables and graphs presented in was not clear and understandable fashion.
 it does not have some clarification regarding what does internationalization means

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