The role of product innovation for the internationalization of small and medium-sized enterprises (SMEs)

Internationalisation of business is not limited solely to large and multinational corporations alone, today the business world has witnessed many case scenarios where Small and Medium-sized Enterprises (SMEs) are predominantly gaining a wave and spaces at the international market.The growing share in the developed and even in the developing economy explains their strong participation to the internationalisation. The aim of this paper is to examine how small and medium-sized enterprises internationalise by using innovative approach to their product development, and how this influences their internationalisation process. The focus therefore is on obtaining better understanding of the role of innovation for the SMEs as a driver for their participation at the international market environment.The paper adopts a literature survey where extant literatures are reviewed with a view to gaining an insight into the role of innovation in the internationalization process.The paper concludes that being innovative and vast in R&D can lead to gaining many accesses to the international market, seeking more opportunity and discovering new market for products and services.It recommends that managers of SMEs should focus on new technology, effective Research and Development, and try to be responsive to market changes in the industry they belong to.This can be achieved by having an effective and efficient management that values innovation for change not for fashion