Towards a theory of internationalization: function of human capital development to support entrepreneurship activity in an Asian context

This study provides a theoretical framework in which to understand and compare and contrast the complexity of the small and medium sized enterprise (SME) internationalization process in two major trading blocs in Asia – the Gulf Cooperation Council and the Association of Southeast Asian Nations. It provides a useful analysis of the ways in which transitional and developed economies in Asia conduct their SME internationalization efforts. The study finds that above all else - human capital development is the overriding factor in determining a successful internationalization strategy and that there is a pressing need for scholars to further investigate this subject to determine how best human capital can be enhanced in order to facilitate entrepreneurship and internationalization of SMEs in Asia. Factors which have been identified as essential contributors to Asia’s economic future. By pinpointing that the development of human capital is the most important factor that speeds up the internationalization process of SMEs, governments can save money and develop more cost-efficient plans for helping SMEs achieve higher rates of market penetration. For practitioners, this paper will be useful in providing examples and a discussion of SME internationalization processes in Asia. Managers can learn through experience and example about the best ways in which to foster internationalization.