Abstract
We draw on the organizational learning, innovation and international entrepreneurship literatures to develop hypotheses that link two types of international activities - foreign sales and offshoring of knowledge-intensive value chain activities - to new product development capability (NPDC) of SMEs. Furthermore, we also examine the impact of CEOs foreign experience on the NPDC of SMEs. Using a sample of small and medium-size enterprises from three industry sectors in the U.S. and South Korea, we test our hypotheses and find support. Implications of our findings for international entrepreneurship theory and practice are discussed.
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