Knowledge, location, and internationalization: empirical evidence for manufacturing SMEs

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper investigates the links between locational conditions, innovative capabilities and internationalization of manufacturing SMEs. Two modes of foreign market servicing are explored: exporting activity and relocating of selected business activities abroad. The empirical analysis employs two probit models based on survey of about 3,000 firms. The results reveal that the outputs of SMEs' innovative activities-i.e., product innovations and patent applications-enhance exporting propensity as expected. Nevertheless, the input-side indicator-R&D intensity-appears to exert no impact. Further, the locational factor proximity to research institutions promotes SMEs' engagement in exporting. Regarding the determinants of selective relocations abroad, the findings show that SMEs with a high degree of R&D are less likely to separate production from other operations and relocate it abroad. Moreover, manufacturing SMEs assessing the proximity to research facilities, as well as support from various regional authorities and other bodies as important and good-quality locational conditions, exhibit a significantly lower likelihood to relocate selected activities abroad. Indeed, emphasizing the role of institutional setting in firm activity, our findings coincide in this respect with the previous literature focused on innovative milieu, learning regions and regional innovation systems.

Heterogeneity in top management teams and outward foreign direct investment: evidence from Chinese listed companies

“…Additionally, as the accumulation, articulation, codification, and creation of knowledge are flexible in supporting dynamic capability development (Kogut and Zander 1992;Villar et al 2014), firms that utilize knowledge well can get better prepared for making changes and avoiding rigidities (Easterby-Smith and Prieto 2008). Moreover, knowledge can help firms perceive new business potentials and opportunities in response to environmental changes (Lejpras 2015).…”

Interactions between investments in innovation and SME competitiveness in the peripheral regions

“…Studies on the efficiency of innovation activity among SMEs exist but they tend to have ambiguous findings: in some cases we can find a positive relationship (more innovation, more competitiveness) or a negative relationship (more innovation, less competitiveness) (e.g., Lewandowska & Stopa, 2019;Moen, 2018;Lejpras, 2015;Fitjar & Rodríguez-Pose, 2011;Petrov, 2011). We think that the positive or negative relationship depends on the type of an investment in innovation.…”

Critical success factors for the internationalisation of small–medium enterprises in indonesia

“…The research findings from Czechoslovakia obtained by Musteen and Datta (2011) revealed that SMEs' export performance is influenced directly and indirectly by product innovation capability. Meanwhile, a study of SMEs in Germany found that export propensity is associated with the output of innovation activities such as new product development and the number of patents (Lejpras, 2015). Another SME study conducted in Germany suggested that innovation capability and the adoption of information technology can enhance SMEs' likelihood of accessing the global market (Lecerf & Omrani, 2020).…”