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After the global financial crisis the role of small and medium-sized enterprises (SMEs) in the international trade of a country has increased. Governments try to support these companies and help them in their internationalization process. The need for assistance for SMEs in internationalization process is greater compared to the large multinational enterprises, as SMEs lack necessary resources and expertise for internationalization. It is argued that engaging in alliance with home-based non-governmental organizations (NGOs) can help SMEs to overcome those difficulties and internationalize more effectively and perform better. In our proposed model, the alliance between NGO and SME foster internationalization and increase the performance through enhancing international network, international entrepreneurship, and trust with the foreign partner. International experience is viewed as a moderator and propose that SMEs with lower international experience benefit more from these alliances.

The Role of NGO–SME Cooperation in Internationalization Process and Performance of SMEs