Abstract
This study explores how absorptive capacity affects the growth of international small firms. First, it considers the direct effect of internationalization on growth; and, than, it juxtaposes two hypotheses: (1) absorptive capacity moderates the relationship between small firm internationalization and growth; or (2) absorptive capacity mediates the relationship between small firm internationalization and growth. Longitudinal data provides support for the direct effect of internationalization on growth and for the mediating role of absorptive capacity.
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