A capabilities perspective on the joint effects of internationalization time, speed, geographic scope and managers’ competencies on SME survival

• Published in: Journal of world business : JWB Vol. 55; no. 6; p. 101110
• Main Authors: Freixanet, Joan, Renart, Gemma
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01-10-2020; Elsevier Advanced Technology Publications
• Subjects: Analysis; Business failures; Business schools; Dynamic capabilities; Earliness of internationalization; Firm survival; Geographic diversification; Globalization; International new ventures; Internationalization process theory; New business enterprises; Small and medium sized companies; Dynamic capabilities; Geographic diversification; Firm survival; Earliness of internationalization; Internationalization process theory; International new ventures
• ISSN: 1090-9516
• DOI: 10.1016/j.jwb.2020.101110

This study examines the effect of key internationalization contingencies on SME survival. We argue early internationalization increases the probability of firm failure, while international experience reduces it. However, the survival odds among international new ventures may be improved by their post-entry international expansion scope and speed, and by managers’ competencies. These internationalization facets provide firms with opportunities to develop and exploit their resources and capabilities, and thus enhance their survival chances. Drawing on a sample of 271 manufacturers followed between 2005 and 2014, we find results that provide support to most of our arguments, and hold theoretical and managerial relevance.