Place of Origin Resources and Globalisation Forces in International Business: Mediating Role of Food Entrepreneurship Orientation in Smes

Abstract

Introduction: The current study aimed to shed light on the influence of place of origin resources and globalization forces in motivating the organic food small and medium enterprises to expand their business internationally. A quantitative approach was adopted to achieve the previously mentioned aim for this study. An online survey questionnaire was filled out by a convenient sample of 211 owners, above managers position, managers and assistant managers in organic food small and medium enterprises (SMEs) in Malaysia. Smart PLS software version 4 was used to test the proposed hypotheses. The results of the study accepted the hypotheses which indicated the place of origin resources and globalisation forces are able to enhance the engagement in international business activities for food industry, with the driving of entrepreneurship orientation in the industry. The study recommended supporting the place of origin resources and globalisation forces for expand the business internationally for the organic food SMEs in Malaysia.   Objective: This study aimed to identify the impact of place of origin resources and globalization forces on organic food small and medium enterprises (SMEs) for engaging in international business.   Theoretical Framework: Drawing the therories of institutional theory, network theory and resource-based view (RBV) theory, this study focuses on several constructs and their interconnections namely globalization forces, resources, entrepreneurship orientation, international business, small and medium entreprises.   Method: The quantitative approach used in the current study to obtain the primary data allowed the researcher to produce statistics and numbers that could be used to describe the phenomena and highlight its advantages In order to accurately represent the study population, a sample of 300 respondents in SMEs was chosen. An Excel file was downloaded from Google Forms six weeks after the survey had been distributed electronically, and it revealed that (211) legitimate questionnaires had been received.   Results and Discussion: The results obtained revealed place of origin resources, globalization forces and entreprenruship orientation are crucial factors in motivating the company to engaging in international business activities.   Research Implications: This study serves as a guide for the enterpreneurs of SMEs to identify the opportunity for expanding their business to overseas. Entrepreneurs who seek global exposure can gain invaluable international experience that will set them apart in the employment market and have a good impact on a world that is rapidly changing and becoming more linked.   Originality/Value: This study has enlarged the body literature of international business topic, which produce through empirical research on resources, globalization forces, entrepreneurship orientation, as well as develop the organic food industry, especially the SMEs in Malaysia.