The impact of human capital, networking and institutional environment on internationalization of SMEs

Abstract

Internationalization of SMEs plays significant role in the growth of small and open economies in terms of revenue generation, creation of new workplaces, economic development of nations, industries and productivity. SMEs due to shortage of resources, intense competition and globalization of the economy are forced to internationalize. However, in some cases internationalization process of SMEs is not fluent and contains some barriers. Corresponding to this government reconsider the policies and tries to facilitate international trade. The researches try to exanimate the current situation and emphasize the success factors and potential barriers. The paper aims to examine the impact of human capital, networking and institutional environment on internationalizations process of SMEs. This study showed that the main success factors of internationalization are associated with qualities of entrepreneur, business networks and government assistance.