The internationalization of SMEs: developing and testing a multi-dimensional measure on Slovenian firms

The internationalization of small and medium-sized enterprises (SMEs) is explored by focusing on a clarification of the internationalization construct. A set of hypotheses is conceptually developed, including the main dimensions of internationalization (operation mode, market, product, time and performance). The proposed multi-dimensional internationalization construct is empirically tested.Questionnaire data were collected from a sample of 161 Slovenian SMEs. Scales were tested for reliability and validity. Key data analysis (confirmatory factor analyses and structural equation modelling) was conducted using the EQS structural equation modelling software.The multi-dimensionality of the developed SME internationalization construct is confirmed. The findings support the proposed SME internationalization hypotheses for the product, time and performance dimensions in full, and the operation mode and market dimensions in part. The proposed internationalization construct can be considered to be a valid measure of the internationalization of SMEs by capturing their multi-dimensionality.The new construct advanced in this study is richer than previous research and offers a relatively complete picture that can be used as a research framework in future examinations of internationalization. The developed internationalization construct advances SME internationalization theory and is informative for practitioners in developing SME internationalization programmes.