Abstract
Although there are several studies analysing how innovation capabilities influence export performance, this study aims to present the impact of a set of internal innovation capabilities on export performance of small and medium-sized firms (smes), with the mediating role of entrepreneurial orientation contingent upon the proactive or reactive behaviour of the firms to external stimuli. The study involves the analysis of 147 questionnaire‐based survey of managers from plastic manufacturing smes operating in Portugal that were subjected to a Partial Least Squares-Structural Equation Modelling (PLS-SEM) technique. The results show that proactive firms to external stimuli are not only better at innovating but also their entrepreneurial orientation capabilities underpin a better performance in international markets when compared with firms that react to external stimuli. This study has implications for smes aiming at increasing their export performance and innovativeness. For practitioners the findings of this study should enable smes owner/managers to better understand the possible impacts of innovation capabilities and entrepreneurial orientation on export performance, and thus lead to more effective smes management.
Highlights
Internationalisation and innovation are important for small and medium-sized firms (SMEs) (Golovko, Valentini 2011)
Taking into account the importance of Entrepreneurial orientation (EO) (Lee et al 2001), this study seeks to complement previous studies and analyse how EO mediates the innovation-export performance relationship taking into account two different perspectives that are common among SMEs: the influence of external stimuli in their proactive and reactive behaviour in the internationalisation process (Westhead et al 2004)
This paper focuses on SMEs of the plastic industry in Portugal, which is characterised by an average export intensity of 56%, between 2010 and 2014, and by a strong innovation capacity
Summary
Internationalisation and innovation are important for small and medium-sized firms (SMEs) (Golovko, Valentini 2011). Few empirical studies report a positive relationship between firm-related innovation capabilities and export performance on SMEs (Guan, Ma 2003; Garcia-Morales et al 2006; Oura et al 2016). The main objective of this paper is to examine how internal innovation capabilities influence the export performance of SMEs. Taking into account the importance of EO (Lee et al 2001), this study seeks to complement previous studies and analyse how EO mediates the innovation-export performance relationship taking into account two different perspectives that are common among SMEs: the influence of external stimuli in their proactive and reactive behaviour in the internationalisation process (Westhead et al 2004). Previous studies analyse the relationship between innovation capabilities and export performance in industrial SMEs from a wide range of sectors (Guan, Ma 2003; Oura et al 2016). Ribau et al SMEs innovation capabilities and export performance: an entrepreneurial orientation view
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
