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

Author

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  • Hyunsuk Lee
  • Donna Kelley
  • Jangwoo Lee
  • Sunghun Lee

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.

Suggested Citation

  • Hyunsuk Lee & Donna Kelley & Jangwoo Lee & Sunghun Lee, 2012. "SME Survival: The Impact of Internationalization, Technology Resources, and Alliances," Journal of Small Business Management, Taylor & Francis Journals, vol. 50(1), pages 1-19, January.
    • Handle: RePEc:taf:ujbmxx:v:50:y:2012:i:1:p:1-19
    DOI: 10.1111/j.1540-627X.2011.00341.x
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    Cited by:

    1. Luca Sensini & Maria Vazquez, 2023. "Effects of Working Capital Management on SME Profitability: Evidence from an Emerging Economy," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(4), pages 1-85, February.
    2. Luiz Antonio de Camargo Guerrazzi & Fernando Antonio Ribeiro Serra & Manuel Portugal Ferreira & Vanessa Vasconcelos Scazziota, 2022. "Using Meta-Analytic Structural Equation Modelling to Advance Entrepreneurship Research: A Study on the Liabilities of Newness and Smallness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 603-631, November.
    3. Michael Neubert, 2023. "A Systematic Literature Review about the Speed of Internationalization," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(2), pages 1-80, February.
    4. Francesco Debellis & Michele Pinelli & Marcel Hülsbeck & Anne Heider, 2023. "Ownership, governance, and internationalization in family firms: a replication and extension," Small Business Economics, Springer, vol. 61(4), pages 1437-1459, December.
    5. Aleksandr Kljuènikov & Mehmet Civelek & Vladimír Krajèík & Petr Novák & Michal Èervinka, 2022. "Financial performance and bankruptcy concerns of SMEs in their export decision," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 867-890, September.
    6. Leković, Bojan & Amidžić, Renata & Vojinović, Dragan & Ivanović-Đukić, Maja, 2023. "Drivers for the Internationalization of Nascent Entrepreneurs and New Business Owners in Southeast European Countries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 28(1), pages 182-214.
    7. Amelia U. Santos-Paulino & Claudia Trentini & Hamidreza Bakhtiarizadeh, . "Internationalization of small and medium-sized enterprises: A new assessment," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    8. David B. Audretsch & Christina Guenther, 2023. "SME research: SMEs’ internationalization and collaborative innovation as two central topics in the field," Journal of Business Economics, Springer, vol. 93(6), pages 1213-1229, August.

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