Abstract
In a world characterized by globalization, where the internationalization of businesses is pivotal for their prosperity, innovation is emerging as a pivotal strategic choice influencing their growth and competitive edge. Despite the broad consensus on the growing importance of internationalization and innovation, some questions arise about the relationship of innovation with entry modes with less commitment to the market and with destination markets with less risks. In order to determine whether there is a pattern of relationship between internationalization modes, destination markets, and innovation for Portuguese firms, the objective is to study this possibility. To achieve this goal, we carried out an online questionnaire survey to collect data. The questionnaire was carefully designed based on a literature review and included various variables related to the internationalization of firms. It was sent to all 8183 firms listed in the AICEP database of Portuguese internationalized firms through Google Forms tool. The data was collected over an 8-month period, starting in May 2019. To analyze the data, we used IBM SPSS Statistics 27.0 software, applying a quantitative approach. We employed Quantitative Analysis Methodologies: Univariate and Multivariate Exploratory Factorial Analysis (EFA), Correlation analysis and the nonparametric tests Chi-square and Mann-Whitney. Based on the findings, the empirical evidence clearly demonstrates that firms employing internationalization modes demanding higher commitment, along with those targeting geographically and psychologically distant markets, place significantly greater emphasis on innovation as a pivotal factor driving their international expansion.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Zucchella, A., Siano, A.: Internationalization and innovation as resources for SME growth in foreign markets: a focus on textile and clothing firms in the Campania Region. Int. Stud. Manag. Organ. 44(1), 21–41 (2014)
Genc, E., Dayan, M., Genc, O.F.: The impact of SME internationalization on innovation: the mediating role of market and entrepreneurial orientation. Ind. Mark. Manage. 82, 253–264 (2019)
Gjergji, R., Lazzarotti, V., Visconti, F., Saha, P.: Internationalization and innovation performance: the role of family management. Economia Aziendale Online- 10(2), 321–343 (2019)
Saridakis, G., Idris, B., Hansen, J.M., Dana, L.P.: SMEs’ internationalisation: when does innovation matter? J. Bus. Res. 96, 250–263 (2019)
Alayo, M., Iturralde, T., Maseda, A.: Innovation and internationalization in family SMEs: analyzing the role of family involvement. Eur. J. Innov. Manag. 25(2), 454–478 (2022)
Do, H., Nguyen, B., Shipton, H.: Innovation and internationalization in an emerging market context: moderating effects of interpersonal and organizational social networks. J. Int. Manag. 29(2), 101014 (2023)
Lee, Y., Hemmert, M.: Performance implications of combining innovation and internationalization for Korean small-and medium-sized manufacturing firms: an exploration–exploitation perspective. Asian Bus. Manag. 22(1), 1–25 (2023)
Sapienza, H.J., Autio, E., George, G., Zahra, S.A.: A capabilities perspective on the effects of early internationalization on firm survival and growth. Acad. Manag. Rev. 31, 914–933 (2006)
Chang, C.H., Chang, C.H., Hsu, P.K., Yang, S.Y.: The catalytic effect of internationalization on innovation. Eur. Financ. Manag. 25(4), 942–977 (2019)
Heunks, F.J.: Innovation, creativity and success. Small Bus. Econ. 10, 263–272 (1998)
Audretsch, D.B., Coad, A., Segarra, A.: Firm growth and innovation. Small Bus. Econ. 43, 743–749 (2014)
Onetti, A., Zucchella, A., Jones, M.V., McDougall-Covin, P.P.: Guest editor’s introduction to the special issue: entrepreneurship and strategic management in new technology based companies. J. Manage. Governance 16(3), 333–336 (2012)
Golovko, E., Valentini, G.: Exploring the complementarity between innovation and export for SMEs’ growth. J. Int. Bus. Stud. 42(3), 362–380 (2011)
Stoian, M.C., Rialp, J., Dimitratos, P.: SME networks and international performance: unveiling the significance of foreign market entry mode. J. Small Bus. Manage. 55(1), 128–148 (2017)
Du, J., Zhu, S., Li, W.H.: Innovation through internationalization: a systematic review and research agenda. Asia Pac. J. Manage. 1–35 (2022)
Mathews, J.: Dragon multinationals: new players in 21st century globalization. Asia Pac. J. Manage. 23(1), 5–27 (2006)
Bagheri, M., Mitchelmore, S., Bamiatzi, V., Nikolopoulos, K.: Internationalization orientation in SMEs: the mediating role of technological innovation. J. Int. Manag. 25(1), 121–139 (2019)
Sarkar, S.: Empreendedorismo e Inovação. Third Edition. Escolar Editora (2014)
Klass, D., Wood, M.: Propensity to innovate: driving innovation in a professional services firm. In: 23rd ANZAM Conference 2009: Sustainable Management and Marketing (2009)
Wan, D., Ong, C.H., Lee, F.: Determinants of firm innovation in Singapore. Technovation 25(3), 261–268 (2005)
Jones, M.V.: First steps in internationalisation: concepts and evidence from a sample of small high-technology firms. J. Int. Manag. 7(3), 191–210 (2001)
Majocchi, A., Zucchella, A.: Internationalization and performance: findings from a set of Italian SMEs. Int. Small Bus. J. 21(3), 249–268 (2003)
Vila, N., Kuster, I.: The importance of innovation in international textile firms. Eur. J. Mark. 41(1/2), 17–36 (2007)
Abubakar, Y.A., Hand, C., Smallbone, D., Saridakis, G.: What specific modes of internationalization influence SME innovation in sub-saharan least developed countries (LDCs)? Technovation 79, 56–70 (2019)
Zahra, S.A., Ireland, R.D., Hitt, M.A.: International expansion by new venture firms: international diversity, mode of market entry, technological learning, and performance. Acad. Manag. J. 43(5), 925–950 (2000)
Kafouros, M.I., Buckley, P.J., Sharp, J.A., Wang, C.: The role of internationalization in explaining innovation performance. Technovation 28(1–2), 63–74 (2008)
Radas, S., Božić, L.: The antecedents of SME innovativeness in an emerging transition economy. Technovation 29(6–7), 438–450 (2009)
Zahra, S.A., Ucbasaran, D., Newey, L.R.: Social knowledge and SMEs’ innovative gains from internationalization. Eur. Manag. Rev. 6(2), 81–93 (2009)
Álvarez, I., Marín, R.: Entry modes and national systems of innovation. J. Int. Manag. 16(4), 340–353 (2010)
Li, G.: A review of the literature of the relationship between innovation and internationalization of SMEs and future prospects. Am. J. Ind. Bus. Manag. 10(03), 619 (2020)
Sass, M.: Internationalisation of innovative SMEs in the Hungarian medical precision instruments industry. Post-Communist Econ. 24(3), 365–382 (2012)
Azar, G., Drogendijk, R.: Psychic distance, innovation, and firm performance. Manag. Int. Rev.. Int. Rev. 54, 581–613 (2014)
Alvarez, R., Robertson, R.: Exposure to foreign markets and plant-level innovation: evidence from Chile and Mexico. J. Int. Trade Econ. Dev. 13(1), 57–87 (2004)
Acknowledgments
This work was supported by the FCT Fundação para a Ciência e a Tecnologia, I.P. [Project UIDB/05105/2020].
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Azevedo, M., Lobo, C.A., Pereira, C.S., Durão, N. (2024). Exploring the Relationship Between Innovation, Entry Modes and Destination Countries. In: Guarda, T., Portela, F., Diaz-Nafria, J.M. (eds) Advanced Research in Technologies, Information, Innovation and Sustainability. ARTIIS 2023. Communications in Computer and Information Science, vol 1936. Springer, Cham. https://doi.org/10.1007/978-3-031-48855-9_1
Download citation
DOI: https://doi.org/10.1007/978-3-031-48855-9_1
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-48854-2
Online ISBN: 978-3-031-48855-9
eBook Packages: Computer ScienceComputer Science (R0)