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On the relationship between firm size, resources, age at entry and internationalization: the case of Slovenian SMEs

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  • Mitja Ruzzier
  • Maja Konecnik Ruzzier

Abstract

Export marketing and international business literature support the view that firm size-a reflection of number of employees, and sales-is positively related to export intensity and is a distinguishing factor between internationalized and non-internationalized firms. According to the resource-based view heterogeneous resource profiles that enable firms to achieve competitive advantage in international markets may be also such differentiating factors. On the other hand, as a result of the process of globalization and the increasing number of born global firms, firm age at entry into foreign markets is becoming negatively related to internationalization. Our findings just partly confirm the trends above. Using a regression model on the selected sample of 247 Slovenian small and medium enterprises, we have confirmed the hypotheses that internationalized companies are significantly larger (in terms of sales) and have more specialized resources (human, organizational, and financial resources) than non-internationalized companies. Organizational and human resources and the number of employees were positively and significantly related, while the age of companies at the start of their international activities was negatively related, to the extent of companies' internationalization. Different implications and conclusions for researchers and entrepreneurs are derived.

Suggested Citation

  • Mitja Ruzzier & Maja Konecnik Ruzzier, 2015. "On the relationship between firm size, resources, age at entry and internationalization: the case of Slovenian SMEs," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(1), pages 52-73, February.
    • Handle: RePEc:taf:jbemgt:v:16:y:2015:i:1:p:52-73
    DOI: 10.3846/16111699.2012.745812
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    Cited by:

    1. Bongsuk Sung & Woo-Yong Song, 2021. "Are Political Factors More Relevant Than Economic Factors in Firm-Level Renewable Energy Technology Export? Evidence from Path Analysis," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    2. Xie, Qunyong, 2023. "Firm size and Chinese firms' internationalization speed in advanced and developing countries: The moderating effects of marketization and inward FDI," Journal of Business Research, Elsevier, vol. 159(C).
    3. Ranajoy Bhattacharyya & Ripudaman Bhardwaj, 2022. "The Effect of Coronavirus Pandemic on the Rupee Dollar Exchange Rate," Working Papers 2264, Indian Institute of Foreign Trade.
    4. Musa Abdu & Babangida Muhammad Musa & Adamu Jibir, 2022. "Firm-level study of the drivers of internationalization of small- and medium-scale enterprises in Sub-Saharan Africa," SN Business & Economics, Springer, vol. 2(6), pages 1-25, June.
    5. S Thayyil & P M Habeeburahiman, 2022. "Determinants of SEZ Units' Export Performance and the Mediating Effects of Commitment, Knowledge and Capabilities," Economic Issues Journal Articles, Economic Issues, vol. 27(2), pages 87-103, September.
    6. Eduardo Saucedo & Jorge Gonzalez, 2021. "Exchange Rate Pass-Through to Prices in Mexico: A Study of the Main Border and Non-Border Cities," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(2), pages 1-24, Abril - J.
    7. Pongelli, Claudia & Majocchi, Antonio & Bauweraerts, Jonathan & Sciascia, Salvatore & Caroli, Matteo & Verbeke, Alain, 2023. "The impact of board of directors’ characteristics on the internationalization of family SMEs," Journal of World Business, Elsevier, vol. 58(2).
    8. Biru, Ashenafi & Filatotchev, Igor & Bruton, Garry & Gilbert, David, 2023. "CEOs’ regulatory focus and firm internationalization: The moderating effects of CEO overconfidence, narcissism and career horizon," International Business Review, Elsevier, vol. 32(3).
    9. Ipsmiller, Edith & Dikova, Desislava, 2021. "Internationalization from Central and Eastern Europe: A systematic literature review," Journal of International Management, Elsevier, vol. 27(4).
    10. Morais, Flávio & Ferreira, João J., 2020. "SME internationalisation process: Key issues and contributions, existing gaps and the future research agenda," European Management Journal, Elsevier, vol. 38(1), pages 62-77.
    11. Eduardo Saucedo & Jorge Gonzalez, 2021. "Exchange Rate Pass-Through to Prices in Mexico: A Study of the Main Border and Non-Border Cities," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(2), pages 1-24, Abril - J.
    12. Sugandha Huria & Kriti Sharma & Neha Jain & Ashley Jose, 2022. "Digitalization and Exports: A case of Indian Manufacturing MSMEs," Working Papers 2261, Indian Institute of Foreign Trade.
    13. Karthik, D. & Upadhyayula, Rajesh & Basant, Rakesh, 2015. "Strategic Paths and Performance of Born Globals: A Study of Indian IT Firms," IIMA Working Papers WP2015-03-36, Indian Institute of Management Ahmedabad, Research and Publication Department.
    14. Abdul Rashid & M. Kabir Hassan & Hafsa Karamat, 2021. "Firm size and the interlinkages between sales volatility, exports, and financial stability of Pakistani manufacturing firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 111-134, March.
    15. Gladys Mireya Valero Córdoba & Manuel Rodenes & Gladys Elena Rueda, 2016. "La internacionalización de las empresas exportadoras. Estado de la cuestión," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 8, pages 127-147, December.
    16. Ankur Roy & Chandra Sekhar & Vishal Vyas, 2016. "Barriers to internationalization: A study of small and medium enterprises in India," Journal of International Entrepreneurship, Springer, vol. 14(4), pages 513-538, December.

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