The Impact of Innovation on the Internationalization of Small and Middle sized Enterprises

Résumé du document

The present study offers to the reader a considerable bibliography review on internationalisation of small and middle-sized enterprises and raises a question in relation with the extent to which the variable innovation plays a main role in this issue.
This paper was designed with the objective to provide guidelines to small and middle sized enterprises to create and/or maintain international markets orientation. The sampled company for the research was a small firm named Zigfreda, which is a new entrant in the fashion industry.
The findings showed that not much stress was giving towards a single variable such as innovativeness, but to the combination of a number of variables and resources, especially previous international experience. In the final part, the researcher compares the theory against what was found in the collected data and observes a consistency between both.

Extraits

[...] Strub, Joseph J. (2004). Intentia: Stepping Out With Fashion and Style Part Three: Movex, a Case Study of Fashion Industry Software. Retrieved April from http://www.technology-evaluation.com. van Hoorn, T. P. (1979). Strategic Planning in Small and Medium-sized Companies. Long Range Planning Welch, D. E., & Welch, L. S. (1996). The internationalization process and networks: a strategic management perspective. [...]

[...] B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management 99-120. Beamish, P.W., & Hugh Munro (1987). The Export Performance of Small and Medium-Sized Canadian Manufacturers. Journal of Small Business and Entrepreneurship, spring, 38-43. Bettis, A. R., & Hitt, A. M. (1995). The New Competitive Landscape. Strategic Management Journal, l6, 7-19. [...]

[...] However, not much stress was giving towards a single variable such as innovativeness, but to the combination of a number of variables. Additionally, besides pursuing unique characteristics for its product/service, generally firms also face the lack of internationalization experience, which is not the case of the sampled firm. Zigfreda demonstrated to have the requisite uniqueness, skills, and know-how sufficiently developed, therefore exporting is almost a natural extension of their current business activities. Moreover, the company internationalized as a result of proactive rather than reactive factors and did not consider internationalization due to a saturated or stagnant home market. [...]

[...] Moen, O. (1999). The relationship between firm size, competitive advantages and export performance revisited. International Small Business Journal 53-72. Muniz-Martinez, N. (1998). The internationalisation of European retailers in America: the US experience. International Journal of Retail and Distribution Management 29-37. Ohmae, K. (1990). The Borderless World. New York: Harper Business. Oviatt, M. [...]

[...] Japan has a highly developed sophistication of marketing infrastructure and a high competitive intensity. Zigfreda's challenge is increased by their moderate degree of product exposure in this export market and unfamiliarity of its export customers upon its products. The company has not experienced many problems with legal and regulatory barriers in this export market Export Performance of the Venture The initial strategic objectives set by the management in entering the market above were basically to gain a foothold in the export market, respond to competitive pressure, increase the profitability of the company, and mainly to expand strategically into foreign markets. [...]