CAGE Distance Framework on Behaviour of Small and Medium Sized Enterprises (SMEs) in the International Supplier Selection Process (Brunei)

By: Nabilah Jeffery
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The CAGE distance framework has been used in the area of semi-globalisation and business expansion. Numerous number of works extended from the CAGE distance framework, which revolves around the areas of internationalisation. This research has sought to find out the applicability of CAGE distance framework in a different context: international supplier selection process in cross-border trading. The research further draws on a specific trading process: the supplier selection process between the Bruneian small and medium sized enterprises (SMEs) and its suppliers from its neighbouring countries in the pursuit to test the applicability. The findings have suggested the lack of processual nature in CAGE distance framework proves to be unsuitable to analyse the behaviour of the small and medium sized businesses in their crossborder trading activities, particularly in their supplier selection process. The only prominent finding conformed to the CAGE distance framework is the cultural distance between Bruneian SMEs and its suppliers from the neighbouring countries. The rest did not apply to the underlying motivation behind the SMEs supplier selection, which further contributes to future suggestions on the direction of the research

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