External Financing, Export Intensity and Inter‐Organizational Collaborations: Evidence from Canadian SMEs

Abstract

Drawing on institutional theory, resource-based perspective and internationalization theory, we propose that the domestic collaborations of small and medium-sized enterprises (SMEs) have a direct positive effect on their export intensity, as well as an indirect effect through enhancing these firms' access to external financing. We test our hypotheses on a sample of 151 Canadian manufacturing SMEs and find partial support for the indirect relationship. Overall, our results suggest that domestic collaborations positively affect SMEs' access to equity financing but not to bank financing. While both equity and bank financing are found to enhance these firms' export intensity, bank financing seems to have a greater impact. The implications of these results are discussed.