Publicly funded business advisory services and entrepreneurial internationalization

Abstract

This article examines whether and how publicly sponsored advisory services can encourage small and medium-sized firms to increase their degree of internationalization. We argue that professional advisors have an impact upon the knowledge and skills firms develop to enhance internationalization. The data examined are drawn from a publicly funded organization providing advisory services to entrepreneurial firms; they show a significant relationship between receipt of advice and the development of internationalization-related knowledge and competences. Knowledge, competences, and advice are all significant predictors that firms will adopt strategies conducive to initiating or expanding internationalization. Moreover, the results suggest that various forms of advisory services should be explicitly considered in assessing the factors which contribute to dynamic capabilities. However, pertinent public policy initiatives should incorporate performance metrics that capture the impact of such advisory services in enhancing the internationalization capabilities of entrepreneurial firms.