Role of Resources in the Internationalisation of Small and Medium Enterprises (SMEs)

Abstract

Using a cross-sectional survey, this study investigates the relationship between firm resources (human capital, organisational capital and physical capital) and internationalisation of Small and Medium Enterprises (SMEs). Data was collected from 248 SMEs using self-administered questionnaires. Data was analysed using correlations and regression models. The study has established that a positive change in human capital, organisational capital and physical capital leads to a significant change in the internationalisation of SMEs. It has also established that an increase in physical resources weakens the predictive power of organisational capital resources in the internationalisation of SMEs. This study contributes to the scanty body of knowledge in the area of SME internationalisation in a resource perspective by drawing on empirical evidence from a developed country context. SMEs need to understand how to utilise their resources and strategically plan on how to deploy them at the right time and in right quantities. Future research can undertake further exploration using a longitudinal methodology to examine the interaction of the resources in the international process.