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

Hyunsuk Lee · Donna J. Kelley · Jangwoo Lee · Sunghun Lee

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International Business and FDI Firm Innovation and Growth Business Strategy and Innovation

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.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1984A resource‐based view of the firm 1983An Evolutionary Theory of Economic Change.1992Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology 1993The cornerstones of competitive advantage: A resource‐based view 1989Asset Stock Accumulation and Sustainability of Competitive Advantage 1996Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration

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