Abstract
In the internationalization process, SMEs are constrained in two ways: liability of foreignness and liability of smallness. While the former is a barrier for all firms the latter is particularly related to SMEs.
Extant literature acknowledges that the ability of SMEs to overcome the liability of foreignness is related to the acquisition of experiential market knowledge that allows SMEs to understand the causal linkages between actions and outcomes within the international environment. Furthermore, SMEs often have to compensate for internal resource deficiencies originating from their liability of smallness by seeking external resources both at the home location but also across the national boundaries. While both views on learning from and for exporting are complementary, their crossing impact measured through international growth is an effect still to be studied.
Our paper aims at providing an understanding on the combinative effect of cross-border collaboration for innovation and international experience on international sales growth. In dealing with the research questions, this paper draws upon unique firm level survey data collected in 2014 across the Adriatic regions of Italy. Our results show how both international experience and international collaboration in innovation are positively associated to international sales’ growth. More in particular, for Italian SMEs, innovative collaboration with partners from Adriatic countries matters.
References
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Becattini, G. (1979). Dal settore industriale al distretto industriale. Alcune considerazioni sull'unità di indagine dell'economia industriale: Il mulino.
Bortoluzzi, G., Chiarvesio, M., Di Maria, E., & Tabacco, R. (2014). Exporters moving toward emerging markets: a resource-based approach. International Marketing Review, 31(5), 506-525.
Bortoluzzi, G., Chiarvesio, M., & R., T. (2015). Managing distribution networks in emerging markets. Evidence from the furniture sector. European Business Review, 27(6).
Brusco, S., & C., S. (1981). Artisan production and economic growth. In F. Wilkinson (Ed.), the dynamics of labour market segmentation. London: Academic Press.
Cainelli, G., & De Liso, N. (2005). Innovation in industrial districts: evidence from Italy. Industry and Innovation, 12(3), 383-398.
Caroli, M.G. & Lipparini A. (2002), Le piccole e medie imprese italiane ei percorsi di crescita internazionale: il quadro di riferimento, in Caroli M.G., Lipparini A.(a cura di), Piccole imprese oltre confine, Carocci, Roma, 19-48.
Cassiman, B., & Golovko, E. (2010). Innovation and internationalization through exports. Journal of International Business Studies, 42(1), 56-75.
Castellani, D., & Zanfei, A. (2007). Internationalisation, Innovation and Productivity: How Do Firms Differ in Italy? The World Economy, 30(1), 156-176.
Černe, M., Jaklič, M., & Škerlavaj, M. (2013). Decoupling management and technological innovations: Resolving the individualism–collectivism controversy. Journal of International Management, 19(2), 103-117.
Chetty, S., Eriksson, K., & Lindbergh, J. (2006). The effect of specificity of experience on a firm's perceived importance of institutional knowledge in an ongoing business. Journal of International Business Studies, 37(5), 699-712.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152.
Colombo, M. G., Laursen, K., Magnusson, M., & Rossi-Lamastra, C. (2012). Introduction: Small Business and Networked Innovation: Organizational and Managerial Challenges. Journal of Small Business Management, 50(2), 310-339.
Costa, S., & Margani, P. (2009). Credit crunch in Italy: Evidence on new ISAE survey data. Paper presented at the Fourth joint EU-OECD Workshop on Business and Consumer Opinion Surveys.
Damijan, J. P., Kostevc, Č., & Polanec, S. (2010). From innovation to exporting or vice versa? World Economy, 33(3), 374-398.
Dana, L.P. & Wright, R.W. (2004). Emerging Paradigms of International Entrepreneurship. In L.P. Dana (Ed.), Handbook of Research on International Entrepreneurship (pp. 3-15). Cheltenham, UK: Edward Elgar.
Ebersberger, B., & Herstad, S. (2013). The relationship between international innovation collaboration, intramural R&D and SMEs’ innovation performance: A quantile regression approach. Applied Economics Letters, 26, 626-630.
Eriksson, K., Johanson, J., Majkgard, A., & Sharma, D. (1997). Experiential knowledge and cost in the internationalization process. Journal of International Business Studies, 337-360.
Evangelista, R., Iammarino, S., Mastrostefano, V., & Silvani, A. (2002). Looking for regional systems of innovation: evidence from the Italian innovation survey. Regional Studies, 36(2), 173-186.
Fitjar, R. D., & Rodríguez-Pose, A. (2012). Firm collaboration and modes of innovation in Norway. Research Policy, 42(1), 128-138.
Fombrun, C., & Ginsberg, A. (1990). Shifting gears: Enabling change in corporate aggressiveness. Strategic Management Journal, 11(4), 297-308.
Freeman, J., Carroll, G. R., & Hannan, M. T. (1983). The Liability of Newness: Age Dependence in Organizational Death Rates. American Sociological Review, 48(5), 692-710.
Fuà, G., & Zacchia, C. (Eds.). (1983). Industrializzazione senza fratture. Bologna: il Mulino.
Gankema, H., Snuif, H., & Zwart, P. (2000). The internationalization process of small and medium-sized enterprises: an evaluation of stage theory. Journal of Small Business Management, 38(4).
Golovko, E., & Valentini, G. (2011). Exploring the complementarity between innovation and export for SMEs’ growth. Journal of International Business Studies, 42(3), 362-380.
Grillitsch, M., & Trippl, M. (2014). Combining knowledge from different sources, channels and geographical scales. European Planning Studies, 22(11), 2305-2325.
Hashi, I., & Stojčić, N. (2013). The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4. Research Policy, 42(2), 353-366.
Hewitt-Dundas, N. (2006). Resource and Capability Constraints to Innovation in Small and Large Plants. Small Business Economics, 26(3), 257-277.
Hilmersson, M., & Jansson, H. (2012). International network extension processes to institutionally different markets: Entry nodes and processes of exporting SMEs. International Business Review, 21(4), 682-693.
Hottenrott, H., & Lopes-Bento, C. (2014). (International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes. Research Policy, 43(6), 1055-1066.
Hultman, M., Katsikeas, S., & M., R. (2011). Export promotion strategy and performance: the role of international experience. Journal of International Marketing, 19(4), 17-39.
Johanson, J., & Vahlne, J. (1977 ). The internationalization process of the firm-a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23-32.
Johanson, J., & Wiedersheim, P. (1975). The internationalization of the firm—four swedish cases. Journal of Management Studies, 12(3), 305-323.
Lages, L. F., Jap, S. D., & Griffith, D. A. (2008). The Role of Past Performance in Export Ventures: A Short-Term Reactive Approach, . Journal of International Business Studies, 39(2), 304–325.
Lasagni, A. (2012). How Can External Relationships Enhance Innovation in SMEs? New Evidence for Europe. Journal of Small Business Management, 50(2), 310-339.
Laursen, K., & Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27(2), 131–150.
Majocchi, A., Bacchiocchi, E., & Mayrhofer, U. (2005). Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships. International Business Review, 14(6), 719-738.
Majocchi, A., & Zucchella, A. (2003). Internationalization and performance findings from a set of Italian SMEs. International Small Business Journal,, 21(3), 249-268.
Monducci, R., Anitori, P., Oropallo, F., & Pascucci, C. (2010). Crisi e ripresa del sistema industriale italiano: tendenze aggregate ed eterogeneità delle imprese. Economia e politica industriale.
Muscio, A. (2007). The impact of absorptive capacity on smes' collaboration. Economics of Innovation and New Technology, 16(8), 653-668.
Nieto, M. J., & Santamaría, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27(6-7), 367-377.
Özsomer, A., & Gençtürk, E. (2003). A resource-based model of market learning in the subsidiary: The capabilities of exploration and exploitation. Journal of International Marketing, 11(3), 1-29.
Pagano, A. (2009). The role of relational capabilities in the organization of international sourcing activities: A literature review. Industrial Marketing Management, 38(8), 903-913.
Paoloni, M., Cesaroni, F.M. & Demartini, P. (2005). Internazionalizzazione e comunicazione finanziaria delle piccole e medie imprese. Milano: F.Angeli.
Pietrobelli, C., Rabellotti, R., & Sanfilippo, M. (2011). Chinese FDI strategy in Italy: the ‘Marco Polo’effect. International Journal of Technological Learning, Innovation and Development, 4(4), 277-291.
Piore, M., & Sabel, C. (1984). The second industrial divide: possibilities for prosperity. New York: Basic books.
Qian, L., & Delios, A. (2008). Internalization and experience: Japanese banks’ international expansion, 1980–1998. Journal of International Business Studies, 39(2), 231-248.
Salomon, R. M. (2006). Spillovers to foreign market participants: Assessing the impact of export strategies on innovative productivity. Strategic Organization, 4(2), 135-164.
Sousa, C., & Bradley, F. (2008). Antecedents of international pricing adaptation and export performance. Journal of World Business, 43(3), 307-320.
Sousa, C.M.P., Martínez-López, F.J., & Coelho, F. (2008) The determinants of export performance: a review of the research in the literature between 1998 and 2005. International Journal of Management Reviews. 10 (4): 343-374.
Theodosiou, M., & Leonidou, L. (2003). Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. International Business Review, 12(2), 141-171.
Zahra, S., Ireland, R., & Hitt, M. (2000). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43(5), 925-950.
Balcet, G., & Evangelista, R. (2005). Global technology: innovation strategies of foreign affilliates in Italy. Transnational corporations, 14(2).
Barca, F. (Ed.). (1997). Storia del capitalismo italiano. Rome: Donzelli.
Becattini, G. (1979). Dal settore industriale al distretto industriale. Alcune considerazioni sull'unità di indagine dell'economia industriale: Il mulino.
Bortoluzzi, G., Chiarvesio, M., Di Maria, E., & Tabacco, R. (2014). Exporters moving toward emerging markets: a resource-based approach. International Marketing Review, 31(5), 506-525.
Bortoluzzi, G., Chiarvesio, M., & R., T. (2015). Managing distribution networks in emerging markets. Evidence from the furniture sector. European Business Review, 27(6).
Brusco, S., & C., S. (1981). Artisan production and economic growth. In F. Wilkinson (Ed.), the dynamics of labour market segmentation. London: Academic Press.
Cainelli, G., & De Liso, N. (2005). Innovation in industrial districts: evidence from Italy. Industry and Innovation, 12(3), 383-398.
Caroli, M.G. & Lipparini A. (2002), Le piccole e medie imprese italiane ei percorsi di crescita internazionale: il quadro di riferimento, in Caroli M.G., Lipparini A.(a cura di), Piccole imprese oltre confine, Carocci, Roma, 19-48.
Cassiman, B., & Golovko, E. (2010). Innovation and internationalization through exports. Journal of International Business Studies, 42(1), 56-75.
Castellani, D., & Zanfei, A. (2007). Internationalisation, Innovation and Productivity: How Do Firms Differ in Italy? The World Economy, 30(1), 156-176.
Černe, M., Jaklič, M., & Škerlavaj, M. (2013). Decoupling management and technological innovations: Resolving the individualism–collectivism controversy. Journal of International Management, 19(2), 103-117.
Chetty, S., Eriksson, K., & Lindbergh, J. (2006). The effect of specificity of experience on a firm's perceived importance of institutional knowledge in an ongoing business. Journal of International Business Studies, 37(5), 699-712.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152.
Colombo, M. G., Laursen, K., Magnusson, M., & Rossi-Lamastra, C. (2012). Introduction: Small Business and Networked Innovation: Organizational and Managerial Challenges. Journal of Small Business Management, 50(2), 310-339.
Costa, S., & Margani, P. (2009). Credit crunch in Italy: Evidence on new ISAE survey data. Paper presented at the Fourth joint EU-OECD Workshop on Business and Consumer Opinion Surveys.
Damijan, J. P., Kostevc, Č., & Polanec, S. (2010). From innovation to exporting or vice versa? World Economy, 33(3), 374-398.
Dana, L.P. & Wright, R.W. (2004). Emerging Paradigms of International Entrepreneurship. In L.P. Dana (Ed.), Handbook of Research on International Entrepreneurship (pp. 3-15). Cheltenham, UK: Edward Elgar.
Ebersberger, B., & Herstad, S. (2013). The relationship between international innovation collaboration, intramural R&D and SMEs’ innovation performance: A quantile regression approach. Applied Economics Letters, 26, 626-630.
Eriksson, K., Johanson, J., Majkgard, A., & Sharma, D. (1997). Experiential knowledge and cost in the internationalization process. Journal of International Business Studies, 337-360.
Evangelista, R., Iammarino, S., Mastrostefano, V., & Silvani, A. (2002). Looking for regional systems of innovation: evidence from the Italian innovation survey. Regional Studies, 36(2), 173-186.
Fitjar, R. D., & Rodríguez-Pose, A. (2012). Firm collaboration and modes of innovation in Norway. Research Policy, 42(1), 128-138.
Fombrun, C., & Ginsberg, A. (1990). Shifting gears: Enabling change in corporate aggressiveness. Strategic Management Journal, 11(4), 297-308.
Freeman, J., Carroll, G. R., & Hannan, M. T. (1983). The Liability of Newness: Age Dependence in Organizational Death Rates. American Sociological Review, 48(5), 692-710.
Fuà, G., & Zacchia, C. (Eds.). (1983). Industrializzazione senza fratture. Bologna: il Mulino.
Gankema, H., Snuif, H., & Zwart, P. (2000). The internationalization process of small and medium-sized enterprises: an evaluation of stage theory. Journal of Small Business Management, 38(4).
Golovko, E., & Valentini, G. (2011). Exploring the complementarity between innovation and export for SMEs’ growth. Journal of International Business Studies, 42(3), 362-380.
Grillitsch, M., & Trippl, M. (2014). Combining knowledge from different sources, channels and geographical scales. European Planning Studies, 22(11), 2305-2325.
Hashi, I., & Stojčić, N. (2013). The impact of innovation activities on firm performance using a multi-stage model: Evidence from the Community Innovation Survey 4. Research Policy, 42(2), 353-366.
Hewitt-Dundas, N. (2006). Resource and Capability Constraints to Innovation in Small and Large Plants. Small Business Economics, 26(3), 257-277.
Hilmersson, M., & Jansson, H. (2012). International network extension processes to institutionally different markets: Entry nodes and processes of exporting SMEs. International Business Review, 21(4), 682-693.
Hottenrott, H., & Lopes-Bento, C. (2014). (International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes. Research Policy, 43(6), 1055-1066.
Hultman, M., Katsikeas, S., & M., R. (2011). Export promotion strategy and performance: the role of international experience. Journal of International Marketing, 19(4), 17-39.
Johanson, J., & Vahlne, J. (1977 ). The internationalization process of the firm-a model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23-32.
Johanson, J., & Wiedersheim, P. (1975). The internationalization of the firm—four swedish cases. Journal of Management Studies, 12(3), 305-323.
Lages, L. F., Jap, S. D., & Griffith, D. A. (2008). The Role of Past Performance in Export Ventures: A Short-Term Reactive Approach, . Journal of International Business Studies, 39(2), 304–325.
Lasagni, A. (2012). How Can External Relationships Enhance Innovation in SMEs? New Evidence for Europe. Journal of Small Business Management, 50(2), 310-339.
Laursen, K., & Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27(2), 131–150.
Majocchi, A., Bacchiocchi, E., & Mayrhofer, U. (2005). Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships. International Business Review, 14(6), 719-738.
Majocchi, A., & Zucchella, A. (2003). Internationalization and performance findings from a set of Italian SMEs. International Small Business Journal,, 21(3), 249-268.
Monducci, R., Anitori, P., Oropallo, F., & Pascucci, C. (2010). Crisi e ripresa del sistema industriale italiano: tendenze aggregate ed eterogeneità delle imprese. Economia e politica industriale.
Muscio, A. (2007). The impact of absorptive capacity on smes' collaboration. Economics of Innovation and New Technology, 16(8), 653-668.
Nieto, M. J., & Santamaría, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27(6-7), 367-377.
Özsomer, A., & Gençtürk, E. (2003). A resource-based model of market learning in the subsidiary: The capabilities of exploration and exploitation. Journal of International Marketing, 11(3), 1-29.
Pagano, A. (2009). The role of relational capabilities in the organization of international sourcing activities: A literature review. Industrial Marketing Management, 38(8), 903-913.
Paoloni, M., Cesaroni, F.M. & Demartini, P. (2005). Internazionalizzazione e comunicazione finanziaria delle piccole e medie imprese. Milano: F.Angeli.
Pietrobelli, C., Rabellotti, R., & Sanfilippo, M. (2011). Chinese FDI strategy in Italy: the ‘Marco Polo’effect. International Journal of Technological Learning, Innovation and Development, 4(4), 277-291.
Piore, M., & Sabel, C. (1984). The second industrial divide: possibilities for prosperity. New York: Basic books.
Qian, L., & Delios, A. (2008). Internalization and experience: Japanese banks’ international expansion, 1980–1998. Journal of International Business Studies, 39(2), 231-248.
Salomon, R. M. (2006). Spillovers to foreign market participants: Assessing the impact of export strategies on innovative productivity. Strategic Organization, 4(2), 135-164.
Sousa, C., & Bradley, F. (2008). Antecedents of international pricing adaptation and export performance. Journal of World Business, 43(3), 307-320.
Sousa, C.M.P., Martínez-López, F.J., & Coelho, F. (2008) The determinants of export performance: a review of the research in the literature between 1998 and 2005. International Journal of Management Reviews. 10 (4): 343-374.
Theodosiou, M., & Leonidou, L. (2003). Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. International Business Review, 12(2), 141-171.
Zahra, S., Ireland, R., & Hitt, M. (2000). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43(5), 925-950.
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