Commercial Diplomacy and SMEs’ Internationalization in the United Arab Emirates Economy: A Qualitative Study

Ms. Fatima AlSuwaidi; Associate Professor  Muhammad  Raziq; Ms. Uzma  Batool; Assisstant Professor  Mansoor  Ahmad

doi:10.36394/jhss/23/1/19

Authors

Fatima AlSuwaidi * College of Business Administration - University of Sharjah
u19106205@sharjah.ac.ae https://orcid.org/0009-0002-8586-1266
Muhammad Raziq College of Business Administration - University of Sharjah https://orcid.org/0000-0002-7793-1597
Uzma Batool College of Business Administration - University of Sharjah https://orcid.org/0000-0003-4173-1902
Mansoor Ahmad College of Business Administration - University of Sharjah https://orcid.org/0000-0002-2963-6315

DOI:

https://doi.org/10.36394/jhss/23/1/19

Keywords:

Commercial diplomacy, SME internationalization, institutional theory, The United Arab Emirates

Abstract

Purpose: Despite the established role of commercial diplomats in SMEs internationalization, our understanding of how commercial diplomats’ activities facilitate the development of SMEs in international markets remains far from c SMEs owner were SMEs owner were omplete. To fill this lacuna, this study explores the phenomenon of commercial diplomacy within the UAE and its implications for the internationalization efforts of small and medium-sized enterprises (SMEs).

Method: Two sets of data unveiling unique experiences of commercial diplomats and SMEs owners were drawn using semi-structured interviews. Thematic analysis of both the data sets offered unique perspectives.

Findings: The findings suggest the significance of human, financial, and digital resources in supporting the internationalization efforts of SMEs. Furthermore, understanding SME involvement in commercial diplomacy, experiences with UAE support programs, and tactics for entering overseas markets enhances comprehension of SME behavior during global expansion.

Originality: This study contributes by highlighting the importance of institutional elements in influencing SME internationalization plans and offers significant insights for policymakers, practitioners, and researchers aiming to improve SME competitiveness in the global market. The implications of the results have significant importance for governments, business owners, and commercial diplomats.

References

Ackermann, T. and Wuschka, S. (2024), “International Humanitarian Law and International Investment Law: Mapping a Developing Relationship”, Yearbook of International Humanitarian Law, Volume 25 (2022) International Humanitarian Law and Neighbouring Frameworks, pp. 41-69. https://doi.org/10.1007/978-94-6265-619-2_2

Bell, E., Bryman, A. and Harley, B. (2022), Business research methods, Oxford university press. https://doi.org/10.1093/hebz/9780198869443.001.0001

Bose, T. K. (2016), “Critical success factors of SME internationalization”, Journal of Small Business Strategy (archive only), Vol. 26 No. 2, pp. 87-109.

Busschers, S. and Ruël, H. (2012), “The value of commercial diplomacy from an international entrepreneurs perspective”, in Commercial diplomacy and international business: A conceptual and empirical exploration, Emerald Group Publishing Limited, pp. 71-103. https://doi.org/10.1108/S1877-6361(2012)0000009007

Chan, C. M., Teoh, S. Y., Yeow, A. and Pan, G. (2019), “Agility in responding to disruptive digital innovation: Case study of an SME”, Information Systems Journal, Vol. 29 No. 2, pp. 436-455. https://doi.org/10.1111/isj.12215

Chandra, A. A., Paul, J. and Chavan, M. (2020), “Internationalization challenges for SMEs: evidence and theoretical extension”, European Business Review, Vol. 33 No. 2, pp. 316-344. https://doi.org/10.1108/EBR-08-2019-0164

Clark, J. and Jones, A. (2019), “Geopolitical teleconnections: Diplomacy, events, and foreign policy”, Political Geography, Vol. 75, pp. 102049. https://doi.org/10.1016/j.polgeo.2019.102049

Eatough, V. and Smith, J. A. (2017), “Interpretative phenomenological analysis”, The Sage handbook of qualitative research in psychology, pp. 193-209. https://doi.org/10.4135/9781526405555.n12

Gamidullaeva, L. A., Vasin, S. M. and Wise, N. (2020), “Increasing small-and medium-enterprise contribution to local and regional economic growth by assessing the institutional environment”, Journal of Small Business and Enterprise Development, Vol. 27 No. 2, pp. 259-280. https://doi.org/10.1108/JSBED-07-2019-0219

Georgiadou, E. and Hughes, M. (2017), “Theorising family firm internationalisation-Socioemotional wealth: A luxury?”.

Gertz, G. (2018), “Commercial diplomacy and political risk”, International Studies Quarterly, Vol. 62 No. 1, pp. 94-107. https://doi.org/10.1093/isq/sqx079

Hajdukiewicz, A. (2018), “The role of commercial diplomacy in promoting and facilitating international business”, www. ciet. oss. unist. hr, pp. 107.

Huang, Z. A. and Wang, R. (2020), “’Panda engagement’in China’s digital public diplomacy”, Asian Journal of Communication, Vol. 30 No. 2, pp. 118-140. https://doi.org/10.1080/01292986.2020.1725075

Johnson, S. S., Grossman, R., Miller, J. P., Christfort, K., Traylor, A. M., Schweissing, E., Bonaventura, C. D., Salas, E., Kreamer, L. and Stock, G. (2021), “Knowing well, being well: Well-being born of understanding: The science of teamwork”. SAGE Publications Sage CA: Los Angeles, CA. https://doi.org/10.1177/08901171211007955

Kostecki, M. and Naray, O. (2007), “Discussion papers in diplomacy”, Commercial Diplomacy and International Business, Netherlands Institute of International Relations Clingendael.

Lambert, M. J. (2022), Shaping the Message: An Analysis of US National Security Strategy Message Framing by the Government and Media, Robert Morris University.

Lop, G. V. (2017), “Commercial diplomacy in a globalized world”, Przegląd Strategiczny, Vol. 7 No. 10, pp. 367-382. https://doi.org/10.14746/ps.2017.1.20

Lundblad, L. and Obstfelder, J. (2018), “Swedish Commercial Diplomacy in China. A comparative case study of two Swedish organisations”.

Moons, S. and De Boer, R. (2014), “Economic diplomacy, product characteristics and the level of development”, Product Characteristics and the Level of Development (September 2, 2014). https://doi.org/10.2139/ssrn.2544592

Naray, O. (2011), “Commercial diplomats in the context of international business”, in Economic Diplomacy, Brill Nijhoff, pp. 121-148. https://doi.org/10.1163/9789004209619_008

Naray, O. (2012), “Commercial diplomacy: an integrative framework”, International Journal of Diplomacy and Economy, Vol. 1 No. 2, pp. 119-133. https://doi.org/10.1504/IJDIPE.2012.051684

Nurhasdy, R., Nurika, R. R. and Yekti, S. N. (2016), “The Relevance of Bandung Spirit in the Contemporary Global Trade Order”, Sospol: Jurnal Sosial Politik, Vol. 2 No. 1, pp. 137-155. https://doi.org/10.22219/sospol.v2i1.4762

Ratten, V., Dana, L.-P., Han, M. and Welpe, I. (2007), “Internationalisation of SMEs: European comparative studies”, International journal of entrepreneurship and small business, Vol. 4 No. 3, pp. 361-379. https://doi.org/10.1504/IJESB.2007.013257

Refass, S., Lillywhite, J., Salem, F., Akrout, Z., Shaer, S. and Shibl, E. (2023), “The Future of SMEs in the UAE”, Digital Economy series.

Ribau, C. P., Moreira, A. C. and Raposo, M. (2018), “Categorising the internationalisation of SMEs with social network analysis”, International Journal of Entrepreneurship and Small Business, Vol. 35 No. 1, pp. 57-80. https://doi.org/10.1504/IJESB.2018.094264

Valdez-Juárez, L. E. and Castillo-Vergara, M. (2021), “Technological capabilities, open innovation, and eco-innovation: Dynamic capabilities to increase corporate performance of SMEs”, Journal of Open Innovation: Technology, Market, and Complexity, Vol. 7 No. 1, pp. 8. https://doi.org/10.3390/joitmc7010008

Visser, R. and Ruël, H. J. (2014), “Innovation of international business support: a research agenda for commercial diplomacy”, International Journal of Diplomacy and Economy 39, Vol. 2 No. 3, pp. 238-257. https://doi.org/10.1504/IJDIPE.2014.064802

Wang, L. (2020), “Religion in China’s public diplomacy: Transition and institutionalization”, China Quarterly of International Strategic Studies, Vol. 6 No. 04, pp. 371-387. https://doi.org/10.1142/S2377740020500219