Abstract

One of the key objectives of this paper is to identify the impacts of internationalisation of
SMEs on firm performance. Although there have been a number of research that examined
the relationship between SME internationalisation and firm performance, research from the
context of smaller developing economies are really scant. This is against the fact that SMEs
are main vehicle for growth in those economies and extensive research on various dimensions
of SMEs including its impact on firm performance may help to better understand the
operational aspects of SMEs in those economies. Using primary data and structural equation
modelling to analyse those data, the paper has found that internationalisation of SMEs has
significant impact on both financial and non-financial performance of SMEs in Bangladesh.
More specifically, the paper has found that internationalisation impacts in two dimensions
(Financial impacts and non-financial impacts) with 8 indicators (higher sales, higher profit,
assets maximization, market expansion, competitive advantage, better reputation, better
customer service and added knowledge).