Innovation and Performance: Differential Learning from International versus Domestic Sales among Australian Small- and Medium-Enterprises

• Main Authors: TAN, Alex Tai Loong, FAN, Terence P. C.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: export; SMEs; learning; innovation; internationalization; Business; Entrepreneurial and Small Business Operations; Strategic Management Policy; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4279
• Institution: Singapore Management University

This study investigates the link between international sales experience in the past and the probability of the focal firm developing innovations, and in turn, the link between innovations and future sales performance. Using data from Australian small- and medium-sized enterprises, the positive relations in the two links are confirmed. However, innovations that present a mediating variable between international sales experience in the past and future sales are only significant in boosting domestic (and total sales), but not future international sales. In contrast, domestic sales experience in the past actually reduces the probability of firms developing innovations.