Zahra, Shaker A, Ucbasaran, Deniz and Newey, Lance R. (2009) Social knowledge and SMEs’ innovative gains from internationalization. European Management Review, Vol.6 (No.2). pp. 81-93. ISSN 1740-4754

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Abstract

Faced with rising competition in their domestic markets and attracted to opportunities in foreign markets, smaller and medium-sized enterprises (SMEs) are increasingly looking towards internationalization as a means of creating and sustaining competitive advantage. This has heightened researchers' interest in examining the benefits of internationalization beyond just financial outcomes. Internationalization can promote learning and the accumulation of the knowledge, skills and capabilities that SMEs need to survive and prosper. Learning and knowledge accumulation can also improve SMEs' product innovations. Using data from 384 US-based SMEs, we find that having a wider international market scope exposes SMEs to a rich network of information that encourages and enhances future product innovation. Similar results are observed when SMEs use high control or high involvement modes of entry in foreign markets. Our analyses also show that social knowledge magnifies and strengthens the effects of international market scope and mode of entry (high control as well as high involvement) on SMEs' product innovation.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	European Management Review
Publisher:	Elsevier Inc.
ISSN:	1740-4754
Date:	2009
Volume:	Vol.6
Number:	No.2
Number of Pages:	13
Page Range:	pp. 81-93
Identification Number:	10.1057/emr.2009.6
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/44694

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