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Exploring the relationships between innovation and internationalization of small and medium‐sized enterprises: A nonrecursive structural equation model
Author(s) -
Halilem Norrin,
Amara Nabil,
Landry Réjean
Publication year - 2014
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1272
Subject(s) - internationalization , reciprocal , industrial organization , product (mathematics) , investment (military) , business , process (computing) , product innovation , economic geography , economics , international trade , mathematics , political science , computer science , geometry , philosophy , linguistics , politics , law , operating system
This article seeks to provide more insights on the two‐way link between internationalization and innovation by considering total, direct, and reciprocal effects using a nonrecursive structural model. Innovation is defined through product and process development, while internationalization is defined through inward and outward internationalization in both closer and farther markets. The results suggest that these two major sources of growth are linked by different sets of relations, from the investment in product and process innovation to outward internationalization in a closer market, or from inward and outward internationalization in farther markets to the investment in product innovation. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.