Exploring the role of internal resources, capabilities, and external enablers in Chinese SMEs’ international expansion

Abstract

This study explores the internationalisation of Chinese small and medium-sized enterprises (SMEs) as a result of leveraging both internal and external resources and capabilities. The resource-based view (RBV) and capability perspective are used to enhance current knowledge on this emerging phenomenon. In addition to the resources and capabilities that inherently exist within the firms, resources controlled by external stakeholders can also be utilised by firms to achieve international success. The empirical analysis draws on data obtained from forty interviews with senior managers in Chinese-based internationalised SMEs across various industries. To enable voices from different perspectives to be heard, interviews were also conducted with other stakeholders of SMEs, namely representatives from three universities and one digital platform. The findings showcase the specific sets of resources and capabilities that can influence international outcomes of firms, including speed and mode of foreign market entry. Moreover, the findings also highlight three ways in which the various resources and capabilities can interact to facilitate firms’ internationalisation. In so doing, this study contributes to the IB literature by elucidating the facilitators of Chinese SMEs’ internationalisation through the lens of RBV. By configuring and recombining certain resources and capabilities, Chinese SMEs across different industries can achieve rapid internationalisation and/or enter foreign markets with high-commitment foreign market entry modes.