How SMEs use foreign customers to develop new products

What is it about?

This study investigates how can benefit from pursuing locally (rather than globally) oriented internationalization strategies. The theoretical model investigates how the local sales concentration and relationship-specific commitment of SMEs relates to new product development. The results imply that investments which enable collaboration in important business relationships are crucial requisites for keeping firms innovative and in pace with market fluctuations.

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Why is it important?

It shows that SMEs are dependent on close customer relationships that can stimulate market learning. Business relationships make firms more closely connected to specific foreign markets and provide impetuses which enable firms to stay relevant to specific customers.

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