A culturally contingent view of the RBV in SMES internationalization

Abstract

This study advances a culturally contingent approach to the resource-based view (RBV) by theorizing how national culture may affect the ways SMEs evaluate their resource endowments before deciding to internationalize. Comparing 1060 SMEs from 4 advanced and 11 emerging and developing economies, and accounting for the SME's national culture, our study departs from universalistic assumptions about the role of resources as a barrier to SME internationalization. SME internationalization research has often emphasized nations' economic status to explain why and when firms expand globally; we demonstrate that its effects are conflated with culture, obscuring critical dynamics in the process. Our findings extend RBV theory by introducing “cultural resource valuation” as a key mechanism, highlighting, for instance, a more nuanced role for networking capabilities in supporting the successful internationalization of SMEs than previously argued. We conclude that both managers and policymakers must recognize this cultural contingency, as Western-derived generalizations may misalign with domestic trade imperatives in diverse contexts. Doing so offers both theoretical nuance and practical guidance for SME internationalization.