Title: Key risk factors in internationalisation of Czech engineering small and medium-sized firms

Authors: Martina Toulová; Marcela Tuzová; Lucie Veselá

Addresses: Department of Marketing and Trade, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic ' Department of Marketing and Trade, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic ' Department of Marketing and Trade, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

Abstract: In the Czech Republic, engineering industry is one of the most export-oriented industries and it contributes highly to the GDP growth. To be successful in internationalisation, the firms must be aware of risks they may encounter in foreign markets. However, the literature shows that risk management is not so developed in SMEs even though they are more exposed to risks and are more vulnerable than large multinational companies. This paper aims to identify the most important risk factors in foreign expansion of Czech engineering SMEs in order to determine what may be the greatest threat for them in the internationalisation process. Moreover, it deals with the risk management practices which these firms apply. The paper is processed on the basis of primary data collected via questionnaire survey among Czech engineering firms conducted in 2014. The risk matrix was applied in order to identify the key risk factors for engineering SMEs.

Keywords: SME internationalisation; engineering SMEs; small and medium-sized enterprises; engineering industry; risk factors; risk matrix; risk management; risk perception; Uppsala model; market risks; commercial risks; Czech Republic; foreign markets.

DOI: 10.1504/IJBG.2016.078840

International Journal of Business and Globalisation, 2016 Vol.17 No.3, pp.404 - 422

Received: 09 Jun 2015
Accepted: 21 Oct 2015

Published online: 27 Aug 2016 *

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