Intellectual Capital and SMEs’ Internationalization; the Relation Via (In) Tangible Resources Acquisition

This research examines if intellectual capital facilitates Small and Medium Enterprises (SMEs) in the acquisition of (in)tangible resources in the host and international market to expedite the internationalization process. We surveyed 271 Chinese SMEs and employed structural equation modelling in AMOS to test the hypothesized relationships. The results revealed that intellectual capital significantly improves internationalization process of Chinese SMEs. Moreover, we found that intellectual capital does not significantly help in acquiring national (in)tangible resource acquisition of international tangible resources while it has an insignificant influence on (in)tangible resource acquisition as well as international intangible resource acquisition. Both national tangible resources and intangible resources have an insignificant influence on internationalization while international (in)tangible resources significantly promote Chinese SMEs towards internationalization. Size of firms and educational background play a prominent role in internationalization route of SMEs. This study partially support claim that both theories can be complemented in terms of internationalization process. This study recommends SMEs to investment in intellectual capital that may help in acquisition of external resources (all types) that are essential for internationalization. This study suggests policy makers to formulate strategic policies and regulations for national resources that can be accessed by ventures easily for internationalization process. Other useful implications are discussed. This research contributes the RBV and internationalization theory in the context of SMEs. To the best of our search and knowledge, we did not find any study addresses the role of intellectual capital in domestic and foreign resource acquisition for internationalization process.