Barriers to Enter into Foreign Markets: Evidence from SMEs in an Emerging Economy

Design/methodology/approach – This study has collected primary data through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse firms from micro and macro level. Following the running example based case study approach, this paper has developed and validated a partial least square based structural model (PLS-SEM) to assess the key barriers to entering foreign markets. Findings – In entering into foreign markets, and emerging economies, this study has identified key socio-economic barriers faced by Bangladeshi SMEs. Additionally, the study has successfully framed the obstacles as a second order hierarchical model. Originality/value – Consider that foreign market entry is perhaps more affected by social barriers as explained by existing theories, including the Uppsala model. Using institutional interpretation, this study reveals that in developing countries, SME international market expansion is more sensitive to the existence of economic barriers.