A Review of the Literature of the Relationship between Innovation and Internationalization of SMEs and Future Prospects

Abstract

Innovation and internationalization are important strategic choices for SMEs. Previous studies have explored the relationship between them based on different theories. Innovation and internationalization have different mutual relationships in different regions and industries. In developed countries, innovation and internationalization are the “old topics” in academic research field. Whether internationalization has an impact on innovation remains questionable. In emerging markets, the relationship between innovation and internationalization presents different characteristics. The shortage of resources makes it hard to adopt both innovation and internationalization strategies. Combing the existing literature, this paper classifies the theoretical basis and research level of the literature, systematically analyzes the interaction of innovation and internationalization, and summarizes the existing research framework. Based on this, the future research directions in this field are pointed out.