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Internationalization moderating the relationship between investment and innovation in small businesses in Latin America

Internacionalização moderando a relação entre investimento e inovação em pequenas empresas na América Latina

Abstract

Objective:

This paper's main objective was to examine the extent to which internationalization efforts moderate the relationship between investments in research and development (R&D) and innovation outputs taken by small businesses, that is, small and medium-sized enterprises - SMEs. Methodology: The methodology used consisted of quantitative research with data from 10,621 SMEs, from 17 countries in Latin America. The present study involved factorial and regression analysis as well.

Main results:

The results obtained led to the conclusion that internationalization efforts have a positive and statistically significant influence on innovation outputs, allowing SMEs in Latin American countries to increase their competitiveness through constructing or improving products, services, or processes.

Theoretical contributions:

At the end of the research, it was also concluded that R&D investments positively influence innovation outputs and that companies that invest in R&D and additionally employ internationalization efforts are more likely to present innovation.

Relevance and originality:

It was the first time that a study jointly and empirically evaluated the moderating effect of internationalization efforts on the relationship between investments in R&D and innovation outputs, totaling a sample of 10,621 SMEs.

Managerial and social contributions:

This study also contributed to the knowledge of Latin America, therefore, it is expected that a greater understanding of the barriers to the development of SMEs will be achieved, through the advancement of internationalization efforts, investment in R&D and innovation. In this way, the aim is to encourage academics and practitioners to search for solutions to break these barriers.

Keywords:
Internationalization efforts; R&D investment; Innovation outputs; Small Business

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