Pathway-specific effects of internationalization on the entrepreneurial orientation–innovation relationship in SMEs

Purpose To examine how internationalization influences the relationship between entrepreneurial orientation (EO) and innovation in small and medium-sized enterprises (SMEs) using the knowledge-based view framework. Design/methodology/approach Data from 224 SMEs across 22 countries were analysed using structural equation modelling. SMEs were categorized into internationalization pathways based on timing, scale and scope. The relationships among EO, internationalization and new product development (NPD) were assessed. Findings Both EO and internationalization positively affect NPD. However, internationalization does not generally strengthen the EO-NPD link. The impact varies by internationalization pathway: early regional internationalizers show the strongest EO-NPD relationship, while late broad-scope internationalizers and born globals exhibit weaker or non-significant links. This underscores the importance of timing, scale and scope in internationalization. Originality/value This study offers new insights into how different internationalization pathways influence the EO-innovation relationship in SMEs, emphasizing the roles of timing, scale and scope. Integrating the knowledge-based view highlights the need for SMEs to align internationalization strategies with entrepreneurial capabilities to enhance innovation outcomes.