Resource-based theory and SMEs internationalisation: evidences from Indian firms

Abstract

This paper examines the role of firm specific resources in the export performance of Indian automobile ancillary SMEs. The firm specific resources studied are: 1) entrepreneurial resources; 2) knowledge-based resources; 3) property-based resources. To gain better insights into the research, the case study method of research has been used. A total of four case studies were analysed qualitatively. The study found that entrepreneurial resources, knowledge-based resources and property-based resources played an important role in the export performance of SMEs. It was also found that global mindset and international networking played an important role in export. Participation in trade fairs was found helpful in augmenting export performance. One of the findings of the study is that SMEs relied more on internally generated financial resources. It was also found that many SME owners were risk averse and were passive exporters and preferred to export through agent.