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date: 03 June 2020

Abstract and Keywords

Small and medium-sized enterprises (SMEs) have considerable economic significance in emerging economies. They provide the greater proportion of employment and create many new jobs. They have a major potential role in such countries’ economic development through the promotion of innovation and entry into the world market. This chapter examines the innovation and internationalization strategies pursued by emerging economy SMEs (EE SMEs) and the factors influencing these. Innovation and internationalization tend to be mutually reinforcing, though the role they play in SME business models can vary according to the context, such as the industry to which an SME belongs. The chapter is organized in terms of four major analytical perspectives which inform studies of international business and international entrepreneurship. These are (1) the contextual perspective (with special reference to institutions); (2) the resource-based view; (3) the network perspective; and (4) the entrepreneurial perspective. Between them, these perspectives identify many features of the environment, the firm, and its leaders that are relevant to understanding innovation and internationalization among EE SMEs. While each perspective has its own distinct focus and rationale, the factors they highlight are in practice connected.

Keywords: SMEs, analytical perspectives, emerging economies, innovation, internationalization

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