SME Survival: The Impact of Internationalization, Technology Resources, and Alliances

Hyunsuk Lee, Donna Kelley, Jangwoo Lee and Sunghun Lee

Journal of Small Business Management, 2012, vol. 50, issue 1, 1-19

Abstract: This research examines the impact of internationalization on small and medium enterprise (SME) survival, and the direct and moderating effects of technology resources and research and development (R&D) alliances. Our survey examination of 1,612 Korean SMEs reveals that sales internationalization is associated with better survival prospects, suggesting that failure risk does not increase with cross‐border sales. In addition, though technology resources provide no direct survival benefits, R&D intensity acts as a moderator in the internationalization‐to‐survival relationship. R&D alliances, on the other hand, are directly linked with survival but do not show a moderating effect. This supports the liabilities of newness and smallness view that external relationships can help counter survival threats but suggests that the accumulation of technology resources may be more important when firms seek international expansion.

Date: 2012
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DOI: 10.1111/j.1540-627X.2011.00341.x

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