Human and social capital interplay among internationalizing SMEs

Abstract

Purpose

This paper aims to provide an explanation for foreign small‐ and‐medium‐sized enterprise' (SMEs) internationalization results in China based on human and social capital interactions.

Design/methodology/approach

The results of a qualitative comparative case study drawing on primary (interviews, observations) and secondary data (reports) are reported.

Findings

The paper finds that human capital dimensions interact and influence social capital development for internationalization purposes. Different types of social capital can be developed (domestic or international) with different effects on internationalization. Similarities with Chinese guanxi practices are also established.

Research limitations/implications

The present paper provides a starting‐point for further research in SME internationalization and entrepreneurs' characteristics in China regardless of cultural traits typically invoked: quantitative analysis, extension to a different context of internationalization or use of different descriptors of human and social capital, etc.

Practical implications

The paper highlights the importance for internationalization agents (such as public agencies) to provide not only cultural training but also, above all, personal coaching to develop some international human capital traits (international orientation, international business skills, etc.) and sectoral connections.

Originality/value

The paper extends the traditional culture‐based guanxi paradigm of internationalization in China to a social capital based approach of emerging entrepreneurship.

Citation

Goxe, F. (2010), "Human and social capital interplay among internationalizing SMEs", Journal of Knowledge-based Innovation in China, Vol. 2 No. 1, pp. 73-88. https://doi.org/10.1108/17561411011031990