Pathways to innovation in Romanian software SMEs: Exploring the impact of interdependencies between internationalisation and knowledge sources

Yoruk, Deniz E. and Bunduchi, Raluca and Yoruk, Esin and Crisan-Mitra, Catalina and Salanta, Irina-Iulia and Crisan, Emil L. (2021) Pathways to innovation in Romanian software SMEs: Exploring the impact of interdependencies between internationalisation and knowledge sources. Journal of International Management, 27 (4). ISSN 1075-4253

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This study explores the interdependent effects of internationalisation and sources of internal and external knowledge on the level of innovation. We present possible pathways that small innovative Romanian software product provider firms pursue to reconfigure their resources to be competitive beyond CEE. This product provider segment of the software development industry exhibits characteristics of innovation-driven economy in specific Romanian city-regions. We examine fourteen SMEs that develop their own products using fuzzy-set Qualitative Comparative Analysis. fsQCA allows us to methodologically differentiate between the distinct pathways to high-level and low-level innovation based on the sources of knowledge and the degree of internationalisation of the product market. We find that internationalisation accelerates the level of product innovation; but together with knowledge sources, it becomes a critical differentiator between high and low-level innovation products. We also find that while combining internal knowledge sources with internationalisation is an effective way for early and gradual internationalisers to introduce high-level innovation products, some internationalised firms rely on the advantages of early internationalisation to the exclusion of external knowledge sources. Moreover, if internationalised, local market-oriented firms can move beyond low-level innovation. Our findings extend the current understanding of the dynamics of SME internationalisation and innovation in the CEE context.

Item Type: Article
Identification Number:
Date: 23 July 2021
Uncontrolled Keywords: product innovation, SME internationalisation, knowledge sources, Romania, software development industry, qualitative comparative analysis
Subjects: N100 Business studies
N200 Management studies
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Centre for Enterprise, Innovation and Growth
Depositing User: Deniz Yoruk
Date Deposited: 02 Aug 2021 17:54
Last Modified: 02 Aug 2021 17:54

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