Organizational Resources and Internationalization of Born-global SMEs: Empirical Evidence from Pakistan

Abstract

This thesis explores the role of human capital for early internationalization of SMEs also known as born-global firms. Drawing from the resource-based view and network theory, a conceptual model is proposed. This model conceptualizes that internal (human capital and learning orientation) and external (foreign alliances) resources facilitate the early and rapid internationalization of born global SMEs especially in the context of a developing economy – Pakistan. The hypotheses of the proposed model were empirically tested on a sample of 112 born-global SMEs of the ICT sector of Pakistan. The findings of this research have demonstrated that the integration of RBV and network theory can be used to illustrate the internationalization of born global SMEs. The indirect role of learning orientation in facilitating a positive relationship between human capital and internationalization of born global firms in the presence of a higher number of foreign alliances is examined. For the managers of born-global SMEs, it is imperative to develop its human capital for its rapid internationalization. Likewise, the development of human capital can assist firms to strengthen their learning orientation through better networking in the form of foreign alliances in international markets. Hence, this study provides a holistic view of how and when the juxtaposition of internal and external resources paves the way for internationalization of born global SMEs.