Evidence-based Writing 1 Template

Essay question:

Is the global environment influential and relevant for small, local businesses in New Zealand?

Part One: Sources

Source #1

Type of source (e.g. journal article, website, etc)

Journal article Scholarly or non-scholarly

Scholarly

Full (formatted) APA 7th reference

Jin, H., & Hurd, F. (2018). Exploring the impact of digital platforms on SME internationalization: New Zealand SMEs use of the Alibaba platform for Chinese market entry. Journal of Asia-Pacific Business, 19(2), 72-95. https://doi.org/10.1080/10599231.2018.1453743

Evaluation (approx. 200-250 words total)

Relevance of the source:

This article investigates how New Zealand’s small and medium-sized businesses are affected by international internet platforms (SMEs). Asia-Pacific companies’ worldwide business methods have changed as a result of digital platforms. However, there is limited knowledge of how digital platforms affect entry strategy in current research on international business. The goal of this article is to investigate the effects that digital platforms have on New Zealand SMEs’ entry into the Chinese market. The results of case study interviews with four SMBs suggest that the use of digital platforms may make it easier for new businesses to get off the ground. This is especially true when getting around resource limitations and connecting to networks. However, local employees are still a necessary component of participating businesses’ market access. The study is important because it shows how SMBs are crucial to economic growth in the majority of Asia-Pacific countries, including New Zealand. In comparison to major enterprises, small and medium-sized businesses (SMEs) often have less funding and resources available on both domestic and foreign markets. SMEs often face challenges when trying to expand internationally, especially in terms of finances and costs. Another common problem is a lack of knowledge and experience in the industry. The paper says that the opportunities provided by digital platforms are exciting but rarely understood given the challenges Asia-Pacific SMBs face when pursuing international development.

Credibility of the source:

The source is credible based on a number of reasons. First, the article is published in a peer-reviewed journal of Asia-Pacific business. This means that other experts in the field have scrutinized the article, made recommendations, and thoroughly reviewed the content. It also uses citations from other verifiable sources and the information therein is up to date.

Source #2

Type of source (e.g. journal article, website, etc)

Journal article Scholarly or non-scholarly

Scholarly

Full (formatted) APA 7th reference

Fiedler, A., Fath, B., & Whittaker, D. H. (2021). The dominant narrative of the New Zealand–China free trade agreement: Peripheral evidence, presumptive tilt and business realities. New Political Economy, 26(3), 328-343. https://doi.org/10.1080/13563467.2020.1755243Evaluation (approx. 200-250 words total)

Relevance of the source:

The SME sector began to experience the effects of a globalized world as soon as New Zealand opened its economy to and with China. Although neoliberal free-trade rhetoric often contradicted people’s abilities and ambitions, it frequently matched and supposedly justified how businesses perceived their chances. The businesses evaluated lacked the scale and resources necessary to capitalize on the opportunity. According to the study, companies nowadays believe that large prospects are easily accessible owing to the way the government communicates on a global scale. Governments have opened local markets to foreign competition with various degrees of enthusiasm. Even though the consequences on specific enterprises are ambiguous, the encouragement of innovation and economic development has shifted from macroeconomic measures to trade liberalization. As a result, enabling institutional change rather than opposing it takes primacy. Existing institutionalist literature studies how rhetoric aids trade liberalization before formal institutions are altered. Despite the fact that the trade debate has evolved significantly, studies show that neoliberal trade principles are still considered when making policy. Despite the fact that neoliberal rhetoric has vigorously promoted free trade as a means of enhancing economic development, scholars have discovered faults in the assumptions that underpin it. The article’s relevance is underlined by its argument that the neoliberal trade narrative may not be as persuasive as it seems at first, further throwing fire to the debate on the impact of trade liberalization on small and medium-sized firms in New Zealand.

Credibility of the source:

One of the most important parts of the argument presented in this article is that the authors provide an unbiased analysis of the issue of internationalization and globalized business environment in New Zealand. There is evidence of examination of issues from more than a singular perspective. Additionally, the sources cited are up to date and credible.

Source #3

Type of source (e.g. journal article, website, etc)

New Zealand government website Scholarly or non-scholarly

Non-scholarly

Full (formatted) APA 7th reference

Ministry of Business, Innovation and Employment. (July 25, 2022). The NZ economy moves from volume to value with Kiwi businesses, including SMEs, becoming more productive. Available at https://www.mbie.govt.nz/business-and-employment/business/support-for-business/small-business/

Evaluation (approx. 200-250 words total)

Relevance of the source:

The article provides relevant government data and statistics on the New Zealand small scale business sector. Government figures show that there are a lot of independent, small, and micro businesses in New Zealand. In New Zealand, there are 546,000 businesses, and 97% of them are extremely tiny. A small business is one with less than 20 employees. They account for 25% of the GDP and 29.3% of the nation’s employment (GDP).

The continuing COVID-19 epidemic’s effects on the nation’s small- and medium-sized company (SME) sector are also covered in the article. Small businesses must overcome the COVID-19’s impacts. This affects not just the owners of thousands of small companies, but also the employees of those enterprises, as well as the whole economy. They contribute to the economy by creating jobs and revenue in diverse regions of the country and by giving our people access to the goods and services they need to thrive.

The government’s statistics has given me vital information that I can use in my research to make sure that New Zealand’s small businesses can compete effectively on a global level. To encourage the development and profitability of small businesses, a thorough awareness of their needs is required. Second, helping startup companies, emerging companies, and expanding companies requires making it easier to get capital. Third, help small businesses so they may expand and reach their full potential. The government should make enabling people to achieve their objectives its top priority rather than maintaining the law.

Credibility of the source:

The source is from the ministry of Business, Innovation and Employment. This means that the information therein is reliable and can be verified. The statistical information provided can be linked to current government projections, calculations, and available data.

Part Two: Essay

Is the global environment influential and relevant for small, local businesses in New Zealand?

I believe that small companies are the engine that drives New Zealand’s economy forward, and I believe that the global economy will have both good and bad effects on local and small businesses throughout the nation. Despite being a tiny nation, New Zealand’s market is always expanding even with the knowledge that the country’s population is just around 4.5 million (Ministry of Business, Innovation and Employment, 2022). Due to the country’s location and size of its market, New Zealand’s firms have little choice but to seek out business prospects overseas and compete on the global market in order to maintain and expand their operations. This is due to the fact that there are not many customers in the market. According to the Small and Medium-Sized Enterprises (SMEs) Strategy developed by the Ministry of Business, Innovation and Employment of New Zealand, the country’s economy is significantly reliant on its SMEs, as are the economies of a considerable number of other OECD member nations (2022). The great majority of job vacancies in New Zealand are generated by small and medium-sized enterprises, sometimes known as SMEs. Consequently, the emphasis of the globalization of the New Zealand economy is often on these small and medium-sized enterprises (SMEs), indicating that there may be both positive and negative repercussions. Not only is a small, local firm impacted by the global economy, but it also benefits enormously from it and the effect and relevance of the global economy is closely related to the approach taken by a small-scale business.

Over the last few decades, the massive concept of globalization has emerged as the single most influential force driving the global economy (Fiedler, Fath, & Whittaker, 2021). In addition to the business sector, this event impacts numerous sectors of society, the environment, and the economy as a whole. Every industry and business has been affected by these developments. The majority of these developments are the result of factors such as intensified competitiveness, fast technical advancement, and expanded information dissemination (Jin & Hurd, 2018). Small and local firms in New Zealand will need to keep a few important aspects of globalization’s core consequences in mind if they intend to stay up with these advancements and remain competitive in their respective industries. Not only is a small, local firm impacted by the global economy, but it also benefits enormously from it. Its relevance is closely related to the approach selected by the SME. A small, local firm in New Zealand may confront a number of challenges, including increased rivalry, the transfer of knowledge and skills, the introduction of new technologies, and the expansion of the market.

The most significant side effect of globalization is a heightened competitive atmosphere. Competition is an influential and relevant factor because it affects how a firm performs on both national and international grounds. This rivalry, according to Jin and Hurd (2018) may be influenced by a variety of factors, including as the pricing and costs of products and services, the targeted market, the rate of technical innovation, the speed with which firms respond, and the speed with which they produce items. A company may increase its market share by cutting the price of the products it manufactures and sells in order to attract more customers. The behaviour of consumers has altered as a consequence of their increasing adaptability and availability to a wider variety of alternatives (Fiedler, Fath, & Whittaker, 2021). People want, for example, to get goods and services in a manner that is both quicker and less time-consuming than what they are used to. Additionally, they want things that are not only inexpensive but also of the highest quality. Something must alter if the organization is to meet all of these expectations. If this does not occur, the firm should anticipate a decline in sales, which would result in a loss of money and market share. Due to the significance of pricing and client preferences in the global market, a business must always be prepared for fluctuating costs and preferences.

Exchange of technology is a positive impact of the global environment that has relevance and influence on a small and local company. One of the clearest indications that we live in a globalized society is when companies that wish to do business globally utilize innovative technology tactics to capitalize on new market prospects. Jin and Hurd (2018) found this to be one of the most effective methods to observe the effects of globalization on society. Internet and e-commerce give a once-in-a-lifetime opportunity for small and medium-sized enterprises (SMEs) interested in expanding their presence in new international markets. One of the most essential methods for companies to ensure the quality of their goods and services is via the use of technology, which is gaining significance in this regard. On the other hand, the organization will be required to give substantial more funding. Utilizing the most current technical breakthroughs is essential for small and local companies in New Zealand to improve service quality and increase revenue (Fiedler, Fath, & Whittaker, 2021). Both the rate at which new technologies are created and the rate at which existing technologies are disseminated have grown as a direct effect of globalization. Markets are now mostly driven by consumer desires. The majority of firms that operate in sectors where big amounts of capital are needed are vulnerable to risk. Consequently, these businesses must be able to adapt swiftly to changes in client and market demand. In addition to great technology management, these companies must have effective research and development administration.

Knowledge and information transfer also impact how a firm operates and interacts in the relevant industry. In today’s high-tech society, information is a crucial component of production that is both incredibly costly and extremely useful (Fiedler, Fath, & Whittaker, 2021). People are able to easily communicate and exchange information across international borders. If given the opportunity to utilize its knowledge and abilities, a corporation may demonstrate its ability to adapt to the global changes that are happening continuously. This issue is quite similar to one which arises when nations exchange technological information (Jin & Hurd, 2018). Due to the frequent and rapid changes in the market, it is essential to exchange knowledge and apply one’s skills and experience as quickly as possible.

In summary, as a consequence of extensive liberalization efforts, New Zealand’s economy is currently among the most open in the world. The influences and relevance of the global environment for the small and local companies cannot be ignored. As more established, larger firms enter the market in New Zealand, small and local companies are forced to adapt, innovate, and expand in order to survive. That said, the global environment has also opened them to more suppliers, more consumers, increased knowledge transfer, and exchange of technology. The nation’s small company sector will have to work extremely hard to bring about the desired shift, since a significant number of the nation’s larger companies are now owned and operated abroad.

References

Fiedler, A., Fath, B., & Whittaker, D. H. (2021). The dominant narrative of the New Zealand–China free trade agreement: Peripheral evidence, presumptive tilt and business realities. New Political Economy, 26(3), 328-343. https://doi.org/10.1080/13563467.2020.1755243Jin, H., & Hurd, F. (2018). Exploring the impact of digital platforms on SME internationalization: New Zealand SMEs use of the Alibaba platform for Chinese market entry. Journal of Asia-Pacific Business, 19(2), 72-95. https://doi.org/10.1080/10599231.2018.1453743

Ministry of Business, Innovation and Employment. (July 25, 2022). The NZ economy moves from volume to value with Kiwi businesses, including SMEs, becoming more productive. Available at https://www.mbie.govt.nz/business-and-employment/business/support-for-business/small-business/