Title: Examining SME performance: the role of innovation, R&D and internationalisation

Authors: Timothy L. Pett, James A. Wolff

Addresses: Center for Entrepreneurship, W.F. Barton School of Business, Wichita State University, Wichita, KS 67260-0147, USA. ' Center for Entrepreneurship, W.F. Barton School of Business, Wichita State University, Wichita, KS 67260-0147, USA

Abstract: SME capabilities have long been viewed as a means for firms to succeed in the marketplace. Within this paper, we develop the theoretical underpinnings for hypothesised relationships between SME capabilities (innovation, R&D activities and internationalisation) on two-distinct forms of SME performance (sales growth and profitability). Multiple regression analyses is used to test the proposed relationships using questionnaire data from 181 mid-western-based SMEs. Significant relationships were found among the innovation, R&D activities and internationalisation capabilities for both forms of performance. A discussion of the implications for these findings with respect to managerial practice and future research is provided.

Keywords: small and medium-sized enterprises; SMEs; SME performance; SME capabilities; innovation; R&D activities; research and development; internationalisation; sales growth; profitability.

DOI: 10.1504/IJEV.2011.041277

International Journal of Entrepreneurial Venturing, 2011 Vol.3 No.3, pp.301 - 314

Published online: 24 Oct 2014 *

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