Export Development of SMEs: Do Managers’ Human and Social Capital Make any Difference?

Abstract

In small and medium-sized enterprises (SMEs), critical decisions – such as those related to internationalization – usually do not derive from a structured discussion among managers, but rather are often taken by a single decision- maker, either (one of) the founder(s) or an export manager. This study investigates whether the individual characteristics of the decision-maker – specifically, aspects related to human capital and to social capital – affect export profile (export speed and degree of internationalization) and whether such impact is mediated by risk propensity and risk perception. Three control variables were used – industry export propensity, firm size and degree of (dis)satisfaction with the performance of domestic operations. An online self- administered survey produced 241 responded questionnaires, of which only 71 fit the eligibility criteria (small or medium firm size firm and decision-maker in the firm for at least three years before the first exports took place). The model parameters were...