The role of resources in the internationalisation of high technology SMEs in Portugal

Drawing on the Resource-Based View of the Firm (RBV) the study suggests a set of mainly knowledge-based resources, specific to high technology SMEs, at firm and individual levels, explaining why in the same industry, some firms consistently outperform others in international markets.A conceptual framework drawing on the RBV and on Transaction Costs Economics (TCE) was developed and operationalised.Empirical research proceeded in two phases. Phase one involved 12 exploratory interviews, respectively with 8 chief executives of high technology SMEs and with 4 experts and academics in the area of enquiry. The role of these exploratory interviews was to qualitatively identify and examine valuable resources to high technology SMEs emphasised or not in the extant literature and that have been included in phase two, which was concerned with a mail survey where 106 firms filled and returned the questionnaire.The data collected provided the basis upon by using multivariate statistical techniques three sets of hypotheses, were developed, tested and discussed: (i) to examine the impact that resources have on firm international performance; (ii) to examine the influence that resources have on the entry mode in the main foreign market: independent vs. contractual arrangement; (iii) to examine the relationship between the use of a contractual arrangement in the main foreign market entry mode and performance in that same market, while considering resources as moderator influences in that relationship.The study main findings suggest the great importance for high technology SME superior international performance of the human capital of the entrepreneur/chief executive as well as the need of building a stronger technology-base through a greater emphasis on R&D activities, by hiring high skilled personnel and capitalising on continuous innovations based on technologies that are new to the market.