Constraints, internationalization and growth: A cross-country analysis of European SMEs

Abstract

Small and medium sized enterprises (SMEs) are known to face barriers which limit their ability to grow. We build on resource dependency theory and the resource-based view to investigate how SMEs are able to achieve venture growth in the face of these constraints by adopting internationalization and inter-firm collaboration strategies. Based on a large sample of European SMEs, our research demonstrates the importance of distinguishing between specific dimensions of internationalization and inter-firm collaborations, in particular between exporting and importing, and between formal and informal collaborations – as well as context-specificity of these strategies with respect to the types of constraints SMEs face.