On the relationship between size, capabilities and internationalisation: an explorative analysis on Italian subcontracting SMEs

The relationship between firm size and internationalization is still a puzzling one. Adopting a resource-based perspective, the aim of this article is to deepen the relationships between industrial subcontractors' capabilities, their size and internationalization. We focus on subcontracting small and medium enterprises (SMEs) since the increasing global fragmentation of production 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. Results confirm the importance of specific capabilities in fostering subcontractors’ internationalization processes. However, they also show that the importance of those capabilities changes substantially in subcontractors of different size.