Firm age, sales growth and survival of internationalized SMEs: does human capital play a role?

Channappa Santhosh

Journal of Economic and Administrative Sciences, 2021, vol. 39, issue 4, 1180-1194

Abstract: Purpose - This paper aims to explore the moderating effect of human capital in the form of a CEO’s educational background and firm age at the time of internationalization on growth and survival. Design/methodology/approach - The research study is based on primary data gathered from 102 internationalized small and medium enterprises (SMEs) belonging to the engineering industry in Bangalore district, Karnataka, India. Findings - The results reveal that human capital significantly improves sales growth but had no impact on the survival of internationalized SMEs. Practical implications - The paper includes practical implications for the CEOs of SMEs to successfully strategize their efforts towards growth and survival in the international market. Originality/value - This research study enhances the importance of human capital and its impact on the growth and survival of internationalized SMEs in the context of an emerging economy where research studies are limited and largely unexplored till date.

Keywords: Internationalization; SMEs; Firm age; Sales growth; Survival; Human capital (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jeaspp:jeas-09-2020-0168

DOI: 10.1108/JEAS-09-2020-0168

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