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

Deniz E. Yoruk; Raluca Bunduchi; Esin Yoruk; Catalina Crisan-Mitra; Irina Salanta; Emil Crisan

doi:10.1016/j.intman.2021.100874

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

Deniz E. Yoruk, Raluca Bunduchi, Esin Yoruk, Catalina Crisan-Mitra, Irina Salanta, Emil Crisan

Research output: Contribution to journal › Article › peer-review

6 Citations (Scopus)

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Abstract

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.

Original language	English
Article number	100874
Number of pages	22
Journal	Journal of International Management
Volume	27
Issue number	4
Early online date	23 Jul 2021
DOIs	https://doi.org/10.1016/j.intman.2021.100874
Publication status	Published - Dec 2021

Bibliographical note

© 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/10.1016/j.intman.2021.100874

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

Knowledge sources
Product innovation
Qualitative comparative analysis
Romania
SME internationalisation
Software development industry

ASJC Scopus subject areas

Business and International Management
Finance
Strategy and Management

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.intman.2021.100874

Post-PrintAccepted author manuscript, 1.03 MBLicence: CC BY-NC-ND

Cite this

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abstract = "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.",

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