Innovation strategy and export intensity of Chinese SMEs: the moderating role of the home-country business environment

Drawing upon a contingency approach, the present study investigates which types of technological innovations are effective in increasing Chinese exporting SMEs' degree of internationalization (measured as export intensity) within the Chinese institutional context. Our research highlights that the impact of their technological innovation inputs (external and internal R&D intensity) and outputs (product and process innovations) on their degree of export internationalization is contingent upon several home-specific business-environmental constraints. Thus, the better Chinese exporting SMEs align their technological innovation strategy with the local institutional environment, the more they can increase their export intensity.