[International SMEs Experience on Foreign Intensity and Economic Performance]

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University

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ABSTRACT

In this paper, we study the relationship between the international experience of small and medium-sized enterprises (SMEs) and their economic performance using intangible and financial asset stock, competitive strategy, and international intensity as mediating factors. The RBV provides the theoretical framework to develop a theoretical model postulating that international experience has an indirect effect on foreign growth and economic performance. This model was used to test a sample of 394 Spanish SMEs through the modelization of a structural equations system. Results show that superior economic performance is only achieved by SMEs that can turn the knowledge they gain from international experience into a large endowment of internationally exploitable intangible assets (irrespective of the fact that these assets form the basis for strengthening international intensity) and into a differentiation competitive strategy. Do small and medium-sized enterprises (SMEs) with international experience obtain higher profits than other SMEs? The academic jury is still out on this question; there are contradictions in the empirical literature on the direct effects of experience on performance that have been highlighted in previous reviews of the state of the art. Our work shows that greater economic performance due to international growth will not result from SMEs' international experience alone. We hypothesize that international experience will only be transformed into outstanding results when the firm takes full advantage of this learning to increase its stock of internationally exploitable intangible assets (irrespective of the fact that these assets form the basis for strengthening international intensity) or to direct its competitive strategy toward differentiation.

TABLE OF CONTENT

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Aim of the research3

Research Questions3

Hypothesis4

Structure of the thesis4

CHAPTER 2: LITERATURE REVIEW5

International Experience and Stock of Assets5

Stock of Assets, International Intensity and Performance8

Competitive Strategy, Stock of Assets and Economic Performance12

Internationalization of Family SMEs14

Opportunity Recognition15

Network Ties15

Activeness and Alertness in the Search for Opportunities16

Prior Knowledge17

International Opportunity Recognition17

Conceptual Overview18

Strategizing for SME Business Success20

Critical Commentary21

Internationalization Model22

Entry Modes23

International Franchising and Licensing24

Definitions Of Franchising And Licensing24

Franchising25

Licensing26

Franchising vs. licensing26

Benefits of franchising27

Agency Theory And Franchising27

Resource Scarcity29

Contributions Of Agency And Resource Scarcity Theory29

International Franchising30

International Licensing32

Multinational SME Corporations34

The First MNC35

The Benefits of MNCs36

MNCs, Power, and Globalization37

The MNC, Business Ethics, and Society: International Corporate Responsibility38

Bribery, Business Gifts, and the Foreign Corrupt Practices Act (FCPA)38

Host Country Obligations40

Cultural Imperialism42

Monitoring MNCs43

Increased Responsibilities Of Business Firms46

Globalization, The Postnational Constellation, And The New Challenges For Corporate Social Responsibility48

The Responsibility Of Business To Society: Premises Of The Instrumental Approach To CSR50

MSMEs and Global Value Chains52

Upgrading MSMEs for Better Business Linkage53

Small Multinational Enterprises under Globalization55

The Context: Globalization56

Findings On ISMEs57

Key Theoretical Perspectives60

Research Directions63

Strategic Planning in New Ventures and Young ...