The Foreign Migrant Workers in the Internationalization Process of Japanese SMEs

a multiple-case study

Abstract

This study aims to contribute to the understanding of internationalization process of Small and Mediumsized Enterprises （SMEs） by investigating the roles of foreign migrant workers. The recent findings in SME internationalization studies have highlighted the importance of human resources and CEO’s experiences and skills in accumulating network and knowledge resources throughout the internationalization process. Less been studied are the characteristics and potential roles of foreign migrant workers in this process. Through a qualitative exploratory study on thirteen Japanese SMEs, this study found that the foreign migrant workers are diverse and complex groups of human resources, and they could facilitate Japanese SME internationalization process by playing two important roles in networking and learning activities: catalyst and social glue. This qualitative approach also helped us discover and identify patterns and linkages between the management of incoming foreign migrant workers and the outward internationalization of Japanese SMEs. Well-designed international human resource management （IHRM） policies were found critical to nourish and develop the potential capacities of foreign migrant workers. Moreover, CEO’s active involvement in communication is also vital to the integration of foreign migrant workers in the organizational strategy. Discussions on the theoretical implications on SME internationalization literature and IHRM are provided, along with practical implications for SME managers and migration policy makers.