Dealing with the tensions between innovation and internationalization in SMEs: A dynamic capability view. (4th March 2022)

• Record Type: Journal Article
• Authors: Battaglia, Daniele; Neirotti, Paolo
• Is Part Of: Journal of small business management. Volume 60:Number 2(2022)
• Page Start: 379
• Page End: 419
• Publication Date: 2022-03-04
• Subjects: Dynamic capabilities -- innovation -- internationalization -- international experience -- university-industry collaboration -- export -- small and medium enterprises (SMEs) -- profitability; Small business -- Management -- Periodicals; 658.022
• DOI: 10.1080/00472778.2020.1711635
• Languages: English
• ISSNs: 0047-2778

Abstract

ABSTRACT: Previous literature disagrees on the fact that innovation and internationalization are decisions with a complementary effect on the performance of small and medium enterprises (SMEs) performance. We reconcile the contrasting views on this topic by using a dynamic capability perspective. We show that the simultaneous involvement in research and development (R&D) and export activities positively impacts SMEs' profitability when such firms collaborate with universities and research centers, or when their international experience involves a diverse set of geographical markets. The magnitude of these moderations is different for low and high performers, thereby showing the lack of a "one best way" to successfully achieve complementarity between R&D and internationalization decisions.