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Turning social capital into business: A study of the internationalization of biotech SMEs

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  • Lindstrand, Angelika
  • Melén, Sara
  • Nordman, Emilia Rovira
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    Abstract

    This study examines how individuals' social capital and its dimensions affect biotech SMEs' acquisition of foreign market knowledge and financial resources during their internationalization processes. To examine these processes, we conducted a longitudinal cross-case study of 14 Swedish biotech SMEs. The results show not only that all dimensions (structural, relational, and cognitive) of social capital affect the acquisition of foreign market knowledge and financial resources, but also that the usefulness of individuals' social capital often changes during SMEs' internationalization. Social capital use can contribute to a rapid internationalization; however, this may impede a firm's understanding of a foreign market. We thus find that those biotech SMEs that experienced an incremental internationalization process were the most successful.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 20 (2011)
    Issue (Month): 2 (April)
    Pages: 194-212

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    Handle: RePEc:eee:iburev:v:20:y:2011:i:2:p:194-212

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    Related research

    Keywords: Biotech SMEs High-tech SMEs Internationalization process Social capital;

    References

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    Cited by:
    1. Suh, Yongyoon & Kim, Moon-Soo, 2014. "Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea," International Business Review, Elsevier, vol. 23(1), pages 115-129.

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