On the relationship between size, capabilities and internationalization: An explorative analysis of Italian subcontracting SMEs

The relationship between firm size and internationalisation is a puzzling one. This paper adopts a resource-based perspective to provide an analysis of the relationship between the capabilities, size and internationalisation of industrial subcontractors, with the aim of deepening the understanding of this relationship. We focus on subcontracting small and medium enterprises (SMEs), since the increasing global fragmentation of production has modified their role within global supply networks. They are connective nodes able to provide to their clients both flexibility and effectiveness through their bridging capabilities. The results confirm the importance of specific capabilities in fostering subcontractors’ internationalisation process. However, they also show that the importance of those capabilities changes substantially in subcontractors of different sizes.