Impact of Globalization on the Competitiveness and Sustainability of Small and Medium-Sized Enterprises (SMEs) in Nepal

Abstract

This study examines the impact of globalization on the competitiveness and sustainability of Small and Medium-sized Enterprises (SMEs) in Nepal. Business competitiveness and business sustainability are the dependent variables. The independent variables are access to international markets, technological adoption, foreign direct investment, government policy measures and brand recognition. The primary source of data is used to assess the opinion of respondents regarding access to international markets, technological adoption, foreign direct investment, government policy measures, brand recognition, business competitiveness and business sustainability. The study is based on primary data of 145 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation and multiple regression models are estimated to test the significance and importance of the impact of globalization on the competitiveness and sustainability of Small and Medium-sized Enterprises (SMEs) in Nepal. The study showed a positive impact of access to international markets on business competitiveness and business sustainability. It indicates that higher the access to international markets, higher would be the business competitiveness and business sustainability. Similarly, the study showed a positive impact of technological adoption on business competitiveness and business sustainability. It indicates that use of updated technology leads to increase in business competitiveness and business sustainability. Likewise, the study showed a positive impact of foreign direct investment on business competitiveness and business sustainability. It indicates that increase in foreign direct investments lead to increase in business competitiveness and business sustainability. Further, the study showed a positive impact of brand recognition on business competitiveness and business sustainability. It indicates that a strong brand attracts trust and long-term market position that leads to increase in business competitiveness and business sustainability. In addition, the study showed a positive impact of government policy measures on business competitiveness and business sustainability. It indicates that supportive policies foster stability and development for businesses to thrive.