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RESEARCH PRODUCT

Effect of SMEs' International Experience on Foreign Intensity and Economic Performance: The Mediating Role of Internationally Exploitable Assets and Competitive Strategy

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In this paper, we study the relationship between the international experience of small and medium-sized enterprises (SMEs) and their economic performance using intangible and financial asset stock, competitive strategy, and international intensity as mediating factors. The RBV provides the theoretical framework to develop a theoretical model postulating that international experience has an indirect effect on foreign growth and economic performance. This model was used to test a sample of 394 Spanish SMEs through the modelization of a structural equations system. Results show that superior economic performance is only achieved by SMEs that can turn the knowledge they gain from international experience into a large endowment of internationally exploitable intangible assets (irrespective of the fact that these assets form the basis for strengthening international intensity) and into a differentiation competitive strategy.