Antecedent and outcomes of innovation-based growth strategies for exporting SMEs

Purpose - The purpose of this paper is to investigate the antecedent and outcomes of different types of innovation as complementary growth strategies, which may enable exporting small-to medium-sized enterprises (SMEs) to achieve success in export markets. Design/methodology/approach - This study is based upon a quantitative survey on Norwegian exporting SMEs. A total of 380 questionnaires were received representing 16.8 per cent response rate. A structural equation modelling analysis is carried out on the sample. Findings - The study finds positive and significant associations between the firm's growth ambition and the pursuance of product and business model innovations. Moreover, the firm's export degree and scope has a significant and positive association with its product innovation strategy, but the association with its business model innovation is significantly negative. Research limitations/implications - The study's findings indicate that future studies should incorporate different types of innovation strategies since their associations with export performance differ substantially. Treating innovation as a general construct appears to be too simplistic. Practical implications - The study's results indicate that focus on product innovation enhances the export performance of SMEs, but that focus on business model innovation has a negative impact. The latter may be too costly and distract focus from the firm's core competences, whereas product innovation can be assumed to provide further competitive strength. Originality/value - By taking a holistic approach towards innovation, this study addresses a gap in the literature on innovation and exporting in SMEs in order to investigate the association between different types of innovation-based growth strategies and the firms' export prosperity.