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Service innovation and internationalization in SMEs: Implications for growth and performance

Author

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  • Kunttu, Anna
  • Torkkeli, Lasse

Abstract

We investigate the relationship between the management of innovations and internationalization among small- and medium-sized enterprises (SMEs). The literature has yielded mixed results on how innovation impacts internationalization and performance of SMEs, while simultaneously neglecting the role of service innovations (SI), in particular. Thus, using a sample of 104 Finnish SMEs, we examine how engaging in SI impacts their growth, international performance and international expansion. We find that engaging in SI has a positive relationship with international performance, but not with the growth or degree of internationalization (DOI) among the companies. We then discuss the implications on innovation management and corporate strategy.

Suggested Citation

  • Kunttu, Anna & Torkkeli, Lasse, 2015. "Service innovation and internationalization in SMEs: Implications for growth and performance," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 26(2), pages 83-100.
    • Handle: RePEc:rai:mamere:mrev-2015-02-kunttu
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    Cited by:

    1. Morais, Flávio & Ferreira, João J., 2020. "SME internationalisation process: Key issues and contributions, existing gaps and the future research agenda," European Management Journal, Elsevier, vol. 38(1), pages 62-77.

    More about this item

    Keywords

    service innovation; innovation management; international performance; business growth;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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