Managerial Capabilities and the Internationalization Process of Small and Medium Enterprises: The Sustainable Role of Risk and Resource Management

Tengfei Shen () and Alina Badulescu ()
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Tengfei Shen: International College, Shinhan University, Seoul 11644, Republic of Korea
Alina Badulescu: Department of Economics and Business, University of Oradea, 410087 Oradea, Romania

Sustainability, 2025, vol. 17, issue 15, 1-22

Abstract: This study explores the internationalization of small and medium enterprises (SMEs), emphasizing the critical role of competent managerial abilities. Specifically, it investigates the sustainable role of managerial capabilities in directly facilitating SMEs’ entry into international markets, or whether these capabilities first assist in risk management and resource utilization, supporting international expansion. We propose that SMEs with skilled and capable managers are better equipped to manage internal risks and leverage available resources, thereby enhancing their internationalization efforts. Drawing on empirical data from 191 Chinese SMEs, our findings support the proposed model, revealing that managerial capabilities contribute to internationalization indirectly—this relationship is fully mediated by risk management and resource utilization. This study recommends that SMEs prioritize building a sustainable management team capable of navigating internal challenges to successfully pursue international growth. Our research contributes to the resource-based view and the Uppsala model of internationalization by contextualizing the role of managerial capabilities, risk management, and resource utilization in the internationalization processes of SMEs.

Keywords: top management; risk; resources; internationalization; SMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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