The internationalization drivers of subcontracting SMEs. An empirical analysis on the double linkage between relational resources and capabilities, network position and degree of internationalization

Industrial subcontractors’ internationalization processes are typically close related to their customers’ one. As a consequence, subcontractors should keep close to them if they want to increase their chances to internationalize on their turn or to increase their degree of internationalization. However, keeping close to major customers imply the possess and the development of an adequate set of resources and capabilities (R&C) that are typically relational: from co-design activities, to just-in-time delivering, from production process co-development to shared innovation practices. Within this paper we hypothesize the existence of a causal relationship between subcontractors’ relational R&C and their degree of internationalization. However, this relationship is mediated by subcontractors’ network strength ties. Hence, the higher their relational R&C, the more favorable their positioning and, on its turn, the higher their international profile. A multivariate causal model has been tested through structural equation modeling on a sample of 104 Italian subcontracting SMEs. Data are strongly coherent with the theoretical model and suggest the overall validity of the research hypothesis.