Overcoming Resource Constraints Through Internationalization? An Empirical Analysis of European SMEs

Previous research has indicated that firms can use internationalization as a strategy to access or build up resources. Such a strategy may be of particular interest or even necessary for firms that lack specific resources. Based on resource dependency theory and the model for entrepreneurial internationalization this paper explores whether resource scarcities in terms of labor, finance and technology provide an incentive for small and medium-sized enterprises (SMEs) to aim to access or accumulate lacking resources through internationalization. A number of hypotheses are tested using firm-level data from the ENSR Enterprise Survey for 18 European countries. The results support that perceived resource deficiencies increase the probability for SMEs to use internationalization as a means for accessing or accumulating lacking resources