Global Journal of Business Management

Global Journal of Business Management ISSN 2736-1721 Vol. 14 (3), pp. 001-015, March, 2020. © International Scholars Journals

Full Length Research Paper

Internationalization, intangible assets and Taiwanese SMEs’ performance: Evidence of an Asian newly-industrialized economy

Yu-Ching Chiao¹* and Kuo-Pin Yang²

¹Department of Business Administration, National Chung Hsing University, 250 Kuo-Kuang Rd., Taichung 402, Taiwan, R.O.C.

²Department of International Business, National Dong Hwa University, 1, Sec. 2, Da-Hsueh Rd., Hualien 974 Taiwan, R.O.C.

Accepted 21 October, 2019

Abstract

This paper investigates the impact of internationalization and intangible assets on the performance of Small and Medium sized enterprises (SMEs) in newly industrialized economies (NIEs). Examining a sample of 3,194 Taiwanese SMEs, we find that: (1) the relationship between internationalization and performance is characterized by an inverted U-shaped curve; (2) SMEs investing more heavily in research and development achieve greater gains in profitability; and (3) though the hypothesized linear relationship between advertising and profitability is not confirmed, further analysis indicates a U-shaped curvilinearity between the two, suggesting that a minimum level of investment is required if advertising is to be effective.

Key words: Internationalization, intangible assets, performance, SMEs, NIE.