Small and medium-sized enterprises (SMEs) are increasingly playing an important role in the economic development of many emerging economies, particularly as they gradually become more involved in global markets through various means of internationalization. While the institutional environments in these emerging economies have progressed significantly toward market economies in recent years, providing SMEs with many opportunities, there are still considerable challenges that constrain SMEs’ performance and growth. Many are pushed abroad as the result of discrimination in the domestic market. Given that the governments in many emerging economies are more interested in supporting large domestic and multinational firms through a variety of investment incentives, these ventures are at a great disadvantage in seeking resources in the domestic market.
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