EconPapers    
Economics at your fingertips  
 

Exploring the complementarity between innovation and export for SMEs’ growth

Elena Golovko and Giovanni Valentini
Additional contact information
Elena Golovko: Department of Organization & Strategy, CIR and CentER, Tilburg University, Tilburg, the Netherlands
Giovanni Valentini: Bocconi University, Milan, Italy

Journal of International Business Studies, 2011, vol. 42, issue 3, 362-380

Abstract: In this paper, we advance and test the idea that innovation and export are complementary strategies for SMEs’ growth. We argue that innovation and export positively reinforce each other in a dynamic virtuous circle, and we identify and describe the process through which this complementarity relationship takes place. Participating in export markets can promote firms’ learning, and thus enhance innovation performance. At the same time, through innovation, firms can enter new geographical markets with novel and better products, therefore making exports more successful, and, by the same token, they can also improve the quality – and consequently increase the sales – of the products sold domestically. We test our theory using an unbalanced panel of Spanish manufacturing firms over the period 1990–1999. We find robust empirical support for our hypothesis: consistent with the presence of complementarity, we show that the positive effect of innovation activity on firms’ growth rate is higher for firms that also engage in exports, and vice versa. Furthermore, we show that, Ceteris paribus, firms’ adoption of one growth strategy (e.g., entering export markets) positively influences the adoption of the other (e.g., innovation).

Date: 2011
References: Add references at CitEc
Citations View citations in EconPapers (38) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v42/n3/pdf/jibs20112a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v42/n3/full/jibs20112a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:42:y:2011:i:3:p:362-380

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Series data maintained by Sonal Shukla ().

 
Page updated 2018-02-15
Handle: RePEc:pal:jintbs:v:42:y:2011:i:3:p:362-380