Enhancing the sales benefits of radical product innovativeness in internationalizing small and medium-sized enterprises

Abstract

This study draws on resource-based theory to examine the strategic orientation conditions under which radical product innovation capability is more or less beneficial. To test these relationships, this study conducts multiple survey studies among international small and medium-sized enterprises (SMEs) in developed and developing economies. This study finds that, although a positive association exists between radical product innovativeness and sales performance in the context of a developed economy, the relationship is non-significant in a developing market context. In addition, across both the developed and developing economy contexts, when high levels of radical product innovativeness exist, as well as when entrepreneurial orientation increases in magnitude, a corresponding increase in sales performance occurs. Similarly, this study finds that, across both contexts, high market-orientation levels strengthen the effect of radical product innovativeness on sales performance.