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The internationalization of small and medium-sized enterprises is widely recognized as a key driver of economic growth and competitiveness. This research aims to investigate the mediating role of market orientation in the relationship between human capital and SME internationalization. Drawing upon the resource-based view and market orientation literature, a conceptual model is proposed to examine the association between human capital and SME internationalization and the mediating effect of market orientation. A quantitative research approach, this study employs a structured questionnaire administered to a diverse sample of SMEs operating across various industries. The collected data is subjected to rigorous statistical analyses, including regression analysis and mediation analysis. This is based on the empirical investigation of a sample of 150 small- and medium-sized enterprises in Pakistan. The results reveal a positive relationship between human capital and SME internationalization. Human capital significantly affects SME’s Internationalization with β value as 0.29. The human capital effect on Market orientation shows β value as 0.82. Market orientation significantly affects SMEs Internationalization with β value as 0.53. Further, Market orientation mediates the relationship between human capital and SME Internationalization with an effect of 0.44 at t= 3.02 and LLCI=0.22 and ULCI=0.64. The results underscore the critical mediating role played by market orientation. The implications of these findings are highly significant for both SME practitioners and policymakers. The study highlights the importance of investing in human capital development to enhance SME internationalization. Moreover, it emphasizes the strategic significance of market orientation in facilitating the effective utilization of human capital for successful internationalization outcomes.

Keywords: SME Internationalization, Human Capital, Market Orientation, Resource-based View, Policymakers.