International experience and absorptive capacity: the impact on SMEs growth

In hi-tech sectors combining intensive R&D efforts with an international market presence is a strategic imperative for all firms, including SMEs. However, for such enterprises the combination of these two goals is more problematic than for their larger counterparts. Accordingly this paper analyzes the tension generated on SMEs' performance by contemporary innovation and internationalization activities, looking for moderators who enable SMEs' fast growth. From a theoretical standpoint we claim that the experience in exploiting innovation knowledge (i.e. realized absorptive capacity) and in internationalization (i.e. international learning intensity and diversity), are positive moderators of the negative interplay exerted by R&D and export on SMEs' revenues growth. Empirically, we found support to this view on a sample of 221 Italian SMEs. Specifically, we show that the realized absorptive capacity and the international learning intensity of SMEs are positive and significant moderators of such interplay, while the diversity of international learning has a positive moderation's effect. Theoretical and practical implications of this relationship are as well discussed.