Innovation and Competitiveness: Key Drivers of SME Internationalization
Innovation and Competitiveness: Key Drivers of SME Internationalization

Author(s): Tihana Koprivnjak Popović
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: SME; Internationalization; Innovation; Competitiveness; Qualitative research
Summary/Abstract: Small and medium-sized enterprises (SMEs) gain a competitive advantage through continuous innovation, which is crucial for their competitiveness on the market and their internationalization. By offering more valuable goods and services than their competitors, SMEs can thrive despite their different starting position compared to large companies. The dynamic competitive environment and changing customer preferences require constant innovation in products and services. This innovation is essential for long-term sustainability, growth and international competitiveness. Research shows that innovative SMEs are more successful in international markets. Innovation and internationalization are complementary processes that drive the growth and development of a company. Access to foreign resources, knowledge and capital increases competitiveness and mitigates weaknesses. The study uses qualitative research, including in-depth interviews with Croatian manufacturing SMEs, to investigate the role of innovation in internationalization. The results confirm that innovation is a key driver of competitiveness and successful market entry.

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