Business group affiliation and SMEs’ international sales intensity and diversification: A multi-country study

This study examines the impact of business group (BG) affiliation on international sales intensity and diversification in small medium-sized enterprises (SMEs) by using a multi-country sample over 13,000 SMEs from 34 European countries. Drawing revised Uppsala internationalization model network theory, this paper suggests that effects BG depend geographical dispersion ties, size age firm, institutional support home country. Thus, we find interfirm networks form BGs are double-edged sword can have both favorable unfavorable consequences for sales, depending BG’s ties. In addition, results reveal is more beneficial smaller countries with lower dependent resources embedded within networks.