The internationalization of SMEs: developing and testing a multi-dimensional measure on Slovenian firms

Abstract

The internationalization of small and medium-sized enterprises (SMEs) is explored by focusing on a clarification of the internationalization construct. A set of hypotheses is conceptually developed, including the main dimensions of internationalization (operation mode, market, product, time and performance). The proposed multi-dimensional internationalization construct is empirically tested.Questionnaire data were collected from a sample of 161 Slovenian SMEs. Scales were tested for reliability and validity. Key data analysis (confirmatory factor analyses and structural equation modelling) was conducted using the EQS structural equation modelling software.The multi-dimensionality of the developed SME internationalization construct is confirmed. The findings support the proposed SME internationalization hypotheses for the product, time and performance dimensions in full, and the operation mode and market dimensions in part. The proposed internationalization construct can be considered to be a valid measure of the internationalization of SMEs by capturing their multi-dimensionality.The new construct advanced in this study is richer than previous research and offers a relatively complete picture that can be used as a research framework in future examinations of internationalization. The developed internationalization construct advances SME internationalization theory and is informative for practitioners in developing SME internationalization programmes.

Keywords:

• internationalization
• SMEs
• construct development
• Slovenia

Acknowledgements

The authors would like to thank the editor and the two helpful reviewers for their in-depth comments on a previous version of this manuscript.

Notes

Notes

1.  The ‘IPIS–Poslovni register Slovenije’ database is a product of the company Novi Forum. This database includes all Slovenian companies and is based on their annual reporting of their Statement of Assets and Liabilities and Balance Sheet as well as additional reporting to the Central Register of Companies. Based on this database it was possible to select from the entire population of Slovenian companies those companies meeting specific criteria (annual turnover, number of employees, date of establishment, organizational type and other criteria).

2.  The exchange rate at the time the study was prepared was approximately SIT 207 for US$1 and SIT 233 for EUR 1.