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New product development in foreign customer relationships: A study of international SMEs
Stockholm Sch Econ, Dept Mkt & Strategy, POB 6501, S-11383 Stockholm, Sweden..
Stockholm Sch Econ, Dept Mkt & Strategy, POB 6501, S-11383 Stockholm, Sweden..ORCID iD: 0000-0003-3737-6055
Stockholm Sch Econ, Dept Mkt & Strategy, POB 6501, S-11383 Stockholm, Sweden..
2017 (English)In: Entrepreneurship and Regional Development, ISSN 0898-5626, E-ISSN 1464-5114, Vol. 29, no 2, p. 1-20Article in journal (Refereed) Published
Abstract [en]

This  study  identifies  a  gap  in  research  concerning  how  small  and  medium-sized  enterprises  (SMEs)  can  benefit  from  pursuing  locally  (rather    than    globally)    oriented    internationalization    strategies.    Becoming  overly  dependent  on  one  single  foreign  market  could  potentially   reduce   the   inflow   and   diversity   of   new   knowledge   that  can  serve  as  input  for  new  product  development.  This  study  discusses  how  this  risk  can  be  minimized.  In  this  endeavour  we  create  a  theoretical  model  that  investigates  how  the  local  sales  concentration and relationship-specific commitment of SMEs relates to new product development. To do this we draw on the behavioural internationalization  process  framework.  The  theoretical  model  is  tested on an effective sample of 188 Swedish SMEs. The results show that  relationship-specific  commitment  mediates  the  effect  of  local  sales concentration on new product development. The implication is that investments which enable collaboration in important business relationships are crucial requisites for keeping firms innovative and in  pace  with  market  fluctuations.  The  findings  thus  contribute  to  international business literature by showing that a local market scope of operations combined with a relationship orientation are beneficial for new product development in international SMEs.

Place, publisher, year, edition, pages
Routledge, 2017. Vol. 29, no 2, p. 1-20
Keywords [en]
International SMEs; business relationships; new product development; local sales concentration
National Category
Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-42776DOI: 10.1080/08985626.2017.1336257OAI: oai:DiVA.org:mdh-42776DiVA, id: diva2:1291229
Funder
Swedish Research Council, 421-2013- 949Available from: 2019-02-23 Created: 2019-02-23 Last updated: 2019-03-26Bibliographically approved

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Publisher's full texthttps://www.researchgate.net/publication/317354439_New_product_development_in_foreign_customer_relationships_a_study_of_international_SMEs

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CiteExportLink to record
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