The role of banks in the internationalization process of SMEs : blessing or curse?

Schüffel, Patrick (School of Management Fribourg, HES-SO // University of Applied Sciences Western Switzerland) ; Baldegger, Rico (School of Management Fribourg, HES-SO // University of Applied Sciences Western Switzerland) ; Tuchschmid, Nils S. (School of Management Fribourg, HES-SO // University of Applied Sciences Western Switzerland) ; Kaiser, Alexander (School of Management Fribourg, HES-SO // University of Applied Sciences Western Switzerland)

This study investigates the role of banks in the internationalization process of small and medium sized enterprises (SME). It first proposes a conceptual model of the effects a bank’s involvement in the internationalization activities of an SME may have and subsequently tests it. As banks may serve as facilitators for internationalizing SMEs we argue that high levels of bank involvement yield benefits to the internationalizing SME. Ceteris paribus it is therefore expected that SMEs which cooperate closely with their banks throughout their internationalization process internationalize broader and faster. The empirical results from the analysis of internationalizing Switzerland-based SMEs support this notion. SMEs that closely work with their corporate banks fare significantly better in their internationalization endeavors than their peers which do not involve banks. Moreover the involvement of banks has a positive effect on the levels of entrepreneurial orientation and the opportunity recognition capabilities of SME. The article contributes to the ongoing dialog in international business entrepreneurship literatures, especially by suggesting new antecedents to the internationalization success of SMEs.


Keywords:
Conference Type:
full paper
Faculty:
Economie et Services
School:
HEG-FR
Subject(s):
Economie/gestion
Publisher:
Dubai, United Arab Emirates, 2-5 July 2017
Date:
Dubai, United Arab Emirates
2-5 July 2017
2017
Pagination:
33 p.
Published in:
Proceedings of the AIB 2017 Annual Meeting
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2017-10-15, last modified 2019-06-19

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