TOWARDS INTERNATIONALIZATION OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs): THE CRITICAL ROLE OF PRODUCT INNOVATION
AbstractInternationalisation of business is not limited solely to large and multinational corporations alone, today the business world has witnessed many case scenarios where Small and Mediumsized Enterprises (SMEs) are predominantly gaining a wave and spaces at the international market. The growing share in the developed and even in the developing economy explains their s t r o n g p a r t i c i p a t i o n t o t h e internationalisation. The aim of this paper is to examine how small and medium-sized enterprises internationalise by using innovative approach to their product development, and how this influences their internationalisation process. The focus therefore is on obtaining better understanding of the role of innovation for the SMEs as a driver for their participation at the international market environment. The paper adopts a literature survey where extant literatures are reviewed with a view to gaining an insight into the role of innovation in the internationalization process. The paper concludes that being innovative and vast in R&D can lead to gaining many accesses to the international market, seeking more opportunity and discovering new market for products and services. It recommends that managers of SMEs should focus on new technology, effective Research and Development, and try to be responsive to market changes in the industry they belong to. This can be achieved by having an effective and efficient management that values innovation for change not for fashion.
Authors who publish with this journal agree to the following terms:
Authors grant the journal copyright
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.