Panahi, Pouria; (2022) Towards A New Understanding of Managerial Competencies: In-depth Study of SME Internationalisation. Doctoral thesis (Ph.D), UCL (University College London).

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Abstract

Due to the increasing involvement of enterprises in international markets, the strategic management of the transition of an organisation from purely domestic into a multinational organisation has become increasingly important. The literature shows that a significant number of the organisation that choose to internationalise are SMEs which command little resources to enable this transition. Increased diversity, ambiguity and complexity as well as uncertainty, instability and high levels of competition are considered to be the characteristics of the context of SME internationalisation and the root cause of some of the challenges that SME managers face. This thesis focuses on the ever-growing emphasis on the management of small and medium sized enterprises (SMEs) specifically by exploring the managerial competencies required for SME internationalisation. It aims to identify the managerial competencies required for SME internationalisation. This qualitative study is informed by the grounded theory methodology. Using semi-structured interviews, primary data was collected from interviewing 52 SME managers who were directly involved in the internationalisation of their respective SME. In contrast to existing thinking in strategic management, which outlines a set of competencies (a functionalist perspective) which can be dynamically arranged (dynamic capabilities/entrepreneurship perspective), this study highlights that managerial competency is a unique, individual and dynamic experience. The study highlights that, in practice, SMEs do not engage in a great deal of systematic strategic planning and their managers have significantly different experiences of the SME internationalisation process. This becomes evident in how they perceived themselves and their different individual experiences during the internationalisation of their SMEs. Additionally, the findings indicate that managerial competency may involve an interaction and interrelation with information and the dynamic arrangement of functional competencies, but the focus of academics and practitioners needs to shift to understanding internationalisation as an experience. This thesis investigates the importance of agency and structure and how competency is a negotiation with the environment that is driven by the SME agent (i.e., the manager) via the managerial experience of SME internationalisation. The implication of the thesis is that there is a need for a paradigm shift in existing thinking from theorising managerial competencies required for SME internationalisation (functionalist perspective) to theorising individual managerial experiences of SME internationalisation i.e., agential experience (agency theory perspective). These are experiences which support SME managers in managing their organisations throughout the transitional period and when their organisation has been fully internationalised and is competing in the diverse international environment. Thus, the study highlights that the ontology of SME managerial competency is not understood in full currently. It identifies the paradigm shift that is needed and has developed the theoretical understanding of managerial competencies as an agential experience. The empirical approach reflects future research.

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