TY - JOUR
T1 - International High-Tech SMEs Amid Geopolitical Pressures
AU - Sinani, Evis
AU - Zilja, Flladina
N1 - Epub ahead of print. Published online: 07 November 2024.
PY - 2024/11/7
Y1 - 2024/11/7
N2 - In the wake of increased geopolitical tensions, we investigate the impact of geopolitical risk on the investments of international high-tech small and medium-sized enterprises (SMEs). Prior research on SME internationalization has primarily emphasized the importance of home and host-country institutions and political risk, with limited attention given to geopolitical risk as a distinct contextual factor. Drawing on international relations literature, we posit that geopolitical risk, captured by diplomatic relations between home and host countries, creates political legitimacy concerns for international high-tech SMEs, discouraging their international investments. This effect is contingent on SME innovation (through patents) and the scope of international diversification. Analysing data from international high-tech SMEs and their subsidiaries for the period 2009–2022, we find consistent evidence for our hypotheses.
AB - In the wake of increased geopolitical tensions, we investigate the impact of geopolitical risk on the investments of international high-tech small and medium-sized enterprises (SMEs). Prior research on SME internationalization has primarily emphasized the importance of home and host-country institutions and political risk, with limited attention given to geopolitical risk as a distinct contextual factor. Drawing on international relations literature, we posit that geopolitical risk, captured by diplomatic relations between home and host countries, creates political legitimacy concerns for international high-tech SMEs, discouraging their international investments. This effect is contingent on SME innovation (through patents) and the scope of international diversification. Analysing data from international high-tech SMEs and their subsidiaries for the period 2009–2022, we find consistent evidence for our hypotheses.
U2 - 10.1111/1467-8551.12875
DO - 10.1111/1467-8551.12875
M3 - Journal article
SN - 1045-3172
JO - British Journal of Management
JF - British Journal of Management
ER -