The innovative product development of internationalising SMEs

The purpose of this paper is to examine the impact of two kinds of experiential knowledge on the knowledge development and innovative product development (IPD) of internationalising small and medium-sized enterprises (SMEs). From this examination, six hypotheses are generated. The results of a linear structural relations (LISREL) analysis of 188 SMEs show that experiential knowledge – in the shape of relationship knowledge and network knowledge – has a direct effect on the knowledge development of internationalising SMEs and their foreign customers and an indirect effect on IPD. Resource-constrained SMEs, thus, use experiential knowledge acquired from foreign business relationships as a means to enable knowledge development, leading to innovative activities like IPD.

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