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Innovation, internationalisation and the performance of microbusinesses

Henley, Andrew and Song, Meng 2019. Innovation, internationalisation and the performance of microbusinesses. International Small Business Journal 10.1177/0266242619893938

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Abstract

This article integrates internationalisation, and specifically exporting, into a conceptualisation of how innovation production leads to productivity performance in microbusinesses employing less than ten people. Innovation production is reframed for the microbusiness context by focusing on knowledge acquisition and formalisation rather than on R&D activity. Propensity score matching analysis is used to investigate British microbusiness survey data. It finds a causal process in which innovation promotes exporting activity. This in turn leads to improved productivity. In contrast to research on larger businesses, the study finds no direct link between innovation production and productivity. These findings are robust to various checks for potential endogeneity arising from feedback into innovation from internationalisation and from self-selection of high productivity firms into exporting.

Item Type: Article
Date Type: Published Online
Status: In Press
Schools: Business (Including Economics)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
Uncontrolled Keywords: Entrepreneurship; Microbusiness; Innovation; Internationalisation; Productivity
Publisher: SAGE Publications (UK and US)
ISSN: 0266-2426
Date of First Compliant Deposit: 20 November 2019
Date of Acceptance: 20 November 2019
Last Modified: 12 Mar 2020 20:01
URI: http://orca.cf.ac.uk/id/eprint/127012

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