Focusing on the importance of going for global and building a network theory, we propose and test a framework of international trade antecedents of micro, small and medium-sized enterprises (MSMEs). Whilst the internationalization of firms has been investigated immensely, there is a little study about what drives of international trades of MSMEs which has a crucial role in the food sector of Italian economy. These firms survive and operate under variety of circumstances, resulting in particular manners they leverage their capabilities and competencies. The analysis of survey data from 1157 MSMEs in three Italian industries of food sector reveals that the international trade intensity not only is positively related to their sunk costs ratio, financial slack intensity and technological capabilities, but also has a U-shaped linkage with the number executive managers. Our study find evidence that many MSMEs in Italian food sector do have potential to go global and internationalize their business if they leverage their competences.
- international trade disputes
- Micro Small and medium-sized enterprises
- Sunk cost
- Financial slack