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What and how do SMEs gain by going international? A longitudinal investigation of financial and intellectual resource growth

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  • Li, Lei
  • Li, Dan
  • Goerzen, Anthony
  • Shi, Weilei (Stone)

Abstract

This study examines the accumulation of financial and intellectual resources of U.S.-based biopharmaceutical SMEs. We find that internationalized SMEs experience better financial resource growth than domestic market-focused SMEs only in the long run. While international expansion per se does not enable SMEs to accumulate more intellectual resources than via domestic expansion, it exerts a positive impact over time for SMEs with strong alliance capabilities. Moreover, we show that alliance capabilities are more important than in-house technological capabilities for key resource accumulation of internationalized SMEs over time. Our results infer that SMEs gain the benefits of resource exploration via international expansion.

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  • Li, Lei & Li, Dan & Goerzen, Anthony & Shi, Weilei (Stone), 2018. "What and how do SMEs gain by going international? A longitudinal investigation of financial and intellectual resource growth," Journal of World Business, Elsevier, vol. 53(6), pages 817-834.
    • Handle: RePEc:eee:worbus:v:53:y:2018:i:6:p:817-834
    DOI: 10.1016/j.jwb.2018.07.001
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