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Title: Innovation propensity and international development of small and medium firms: the moderating effects of corporate governance structure

Authors: Christian Corsi; Antonio Prencipe

Addresses: Facoltà di Scienze della Comunicazione, Università degli Studi di Teramo, Via R. Balzarini 1, 64100 Teramo, Italy ' Facoltà di Scienze della Comunicazione, Università degli Studi di Teramo, Via R. Balzarini 1, 64100 Teramo, Italy

Abstract: The paper aims to explore the moderating effects of governance structure on the relationship between innovation propensity and international development of SMEs. Based on agency and organisational learning theories, we hypothesise that ownership concentration, institutional ownership, family-owned firm, and foreign group affiliation have positive moderating effects on the innovation-internationalisation relationship. Using a sample of 2,876 Italian firms, the results suggest that ownership concentration and foreign group affiliation positively moderate the relation between innovation and international development. Institutional investors seem to have no interest in being involved in innovative processes or, to some extent, in the international expansion. Family-owned firms have a positive influence on international development only when they interact with the innovation efforts of the firms.

Keywords: business development; SME; internationalisation; innovation; family ownership; institutional ownership; ownership concentration; foreign business group.

DOI: 10.1504/IJEIM.2018.089717

International Journal of Entrepreneurship and Innovation Management, 2018 Vol.22 No.1/2, pp.80 - 102

Available online: 26 Jan 2018 *

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