“…Numerous scholars reveal empirical evidence that foreign ownership is associated with better performance via monitoring of managers' actions (Ben‐Nasr, 2016; Denis et al, 1999; Gillan & Starks, 2003). Bürker, Franco, and Minerva (2013) indicate that according to the internalisation theory, foreign‐owned firms acquire superior intangible assets coming from the parent company (e.g., technology, managerial skills, production method, brand names). Technology is also an important contributor to SMEs in the long run because direct investment flows from developed countries to developing countries, bringing with it higher‐ranking technology, organisational capital, and access to international capital markets; this would be the best way to improve firm performance in the host countries (Chari, Chen, & Dominguez, 2012; Hallward‐Driemeier, Wallsten, & Xu, 2006).…”