Lobalisation and Organizational Behavior: The difficulties in scaling up of small and medium enterprises in the manufacturing sector in Uzbekistan

1. Introduction

Research Aim: the aim of the study is to understand how globalization has affected the growth potential and growth challenges encountered by small and medium enterprises in the manufacturing sector in Uzbekistan

2. Research Questions:

2.11. What are the implications of globalization for the growth of SMEs in the manufacturing sector in Uzbekistan?
2.2. What are the strategies being pursued by SMEs to seek growth in context of the global business environment?

3.Literature Review Profile:

There is significant literature on the growth of SMEs and how they are adapting to the global environment. The case of Uzbekistan becomes very pertinent because SMEsa interface with the global environment in this country is relatively new. In the western world SME growth and particularly their internationalization is already being heralded as the route out of the present economic downturn.

The fundamental premise is that SMEs have an advantage of flexibility because of their size. This allows them to be more adaptable and flexible in coping with external business environment and the changes therein. However, as they grow, management complexities and rigidities in process and practices increase. Growth is thus a dilemma and in the context of global markets growth is imperative for exploiting it and for resisting the pressures of consolidation and takeovers by larger organizations.

In the manufacturing industries in Uzbekistan these aspects become highly contextual to the nature of the industry and the profile of SMEs therein. These are subject to the growth-flexibility tradeoff that generically affect the innovation potential of SMEs but at the same also need to be reflected in the business and cultural specificities in Uzbekistan that could moderate or amplify such effects. These contextual factors will also impact the nature of growth aspirations, along with the market, regulation and capital structure effects with respect to globalization.

In Uzbekistan the manufacturing sector is central to economic performance and the role SMEs have to play in any developing country is very central. These two premises further establish the relevance and importance of this study.

4. Research Methodology

The inductive research study will be informed by secondary sources of information and primary data collection from SMEs in the manufacturing sector in SMEs. A structured instrument will be deployed for this and proxy indicators will be developed for variables identified in the literature review and associated hypotheses.

The sample will be drawn from at least 6 SMEs in the manufacturing sector in Uzbekistan and will comprise a sample of at least 30 respondents. Responses on growth strategies and challenges will be analysed using correlation analysis and potentially also using regressions. In the case of the latter because of low sample size (due to access issues) data will be simulated using a factor of standard deviations to extend the data (Monte-Carlo Simulation) to a requisite frame for analysis. Appropriate references from research will be used to validate this technique.

5. Discussion and Conclusions

The study will be able to not only explain the implications of globalization on growth strategies of SMEs in Uzbekistan and in the manufacturing sector, but also see how generic explanations of SME growth and strategic behavior apply. The discussions will argue this based on the findings from this empirical study. The conclusions will reflect on the questions asked upfront in the study to provide focused responses and also elicit limitations of the findings the study
presents.

6. Sources for the Outline

Bartlett, C. A., & Ghoshal, S. 1987. Managing across borders: new organizational responses. Sloan Management Review (Fall ), pp.43-53

BERR, Annual Small Business Survey 2006/07, available at uk/
files/file42727.doc

Delmar, F., Davidsson, P., Gartner, W. 2003 a?Arriving at the high-growth firmaJournal of Business Venturing, Vol. 18, issue 2. pp. 189-217

Gibbons, J. D.1985 Nonparametric Statistical Inference. New York: Marcel Dekker, 71-72.