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Technology Innovation in Internationalising SMEs

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  • Emilia Rovira Nordman
  • Daniel Tolstoy

Abstract

This study investigates the potential effects of product flexibility and personal interaction on technology innovation in the realm of the foreign customer relationships of small and medium-sized enterprises (SMEs). The results of a linear structural relations (LISREL) analysis of 188 relationships between Swedish SMEs and their foreign customers demonstrate that SMEs' product flexibility stimulates personal interaction in foreign customer relationships, which in turn enhances the firms' technology innovation. The findings suggest that personal interaction reinforces a trusting relationship and, thereby, facilitates processes by which the knowledge of the involved parties is combined into new technological solutions. Hence, we conclude that product flexibility and personal interaction with foreign customers are important strategic factors for SMEs' technological innovation in foreign markets.

Suggested Citation

  • Emilia Rovira Nordman & Daniel Tolstoy, 2011. "Technology Innovation in Internationalising SMEs," Industry and Innovation, Taylor & Francis Journals, vol. 18(7), pages 669-684, October.
    • Handle: RePEc:taf:indinn:v:18:y:2011:i:7:p:669-684
    DOI: 10.1080/13662716.2011.604472
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    Cited by:

    1. Bagheri, Mahshid & Mitchelmore, Siwan & Bamiatzi, Vassiliki & Nikolopoulos, Konstantinos, 2019. "Internationalization Orientation in SMEs: The Mediating Role of Technological Innovation," Journal of International Management, Elsevier, vol. 25(1), pages 121-139.
    2. Nordman, Emilia Rovira & Tolstoy, Daniel, 2016. "The impact of opportunity connectedness on innovation in SMEs’ foreign-market relationships," Technovation, Elsevier, vol. 57, pages 47-57.
    3. Eva Tomášková & Lucie Kaòovská, 2022. "Impact of cooperation flexibility on innovation flexibility in SMEs," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 533-566, June.
    4. Patrizia de Luca & Giovanna Pegan, 2016. "Business innovation and Internationalisation: Focus on the Italian Coffee Industry," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(2), pages 63-81.
    5. Meyer Susanne & Berger Martin, 2014. "Internationalisation of research and development activities of small and medium-sized enterprises in Austria: Strategic drivers for spatial organisation," ZFW – Advances in Economic Geography, De Gruyter, vol. 58(1), pages 1-17, October.

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