What is it about?
This article looks at how SMEs in Mozambique can improve their success in international markets. Instead of focusing solely on cost reduction, the study explores how a company’s ability to innovate affects export performance. For that 250 managers of SMEs in Mozambique were surveyed to understand how innovation, cost strategies, and export results are connected. The article found that: * SMEs with stronger innovation capabilities tend to perform better in exporting. * Companies that use cost leadership (offering products at lower costs than competitors) and cost focus (keeping costs low in specific market segments) strengthen the positive impact of innovation on export success. * These cost strategies partly explain how innovation leads to better export performance. The study concludes that SMEs in emerging economies like Mozambique can compete internationally by developing innovative abilities while keeping their costs under control.
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Why is it important?
This research is important for several reasons: a) It highlights the role of innovation in emerging economies This study provides valuable evidence from Mozambique, showing that innovation is also a key driver of international success in developing markets. b) It offers practical guidance for SME managers The findings suggest that SMEs should not rely only on low prices to compete globally. Instead, they should: * Invest in innovation (new products, technologies, and processes) * Combine innovation with efficient cost management This balanced approach can lead to stronger export performance. c) It supports economic development SMEs play a major role in job creation and economic growth in emerging countries. Helping them succeed in international markets can: * Increase foreign revenue * Strengthen local industries * Improve competitiveness of the national economy
Perspectives
This manuscript is particularly compelling because it combines two critical aspects of competitiveness: innovation and cost efficiency. In many emerging economies, SMEs often feel pressured to compete primarily on price due to limited resources. This study shows that innovation is not a luxury — it is a powerful tool that can significantly improve export performance, especially when supported by smart cost strategies. By providing real data from Mozambican SME managers, the manuscript gives voice to businesses in emerging markets and offers insights that are grounded in reality. The results suggest that even in resource-constrained environments, SMEs can build innovation capabilities and use strategic cost advantages to compete internationally. This sends an important message to entrepreneurs and policymakers that investment in innovation can lead to sustainable growth. Overall, the manuscript makes a meaningful contribution by offering both academic value and practical recommendations that can help SMEs in emerging countries succeed beyond their domestic markets.
Antonio Carrizo Moreira
Universidade Aberta
Read the Original
This page is a summary of: The mediating roles of cost leadership and cost focus strategies on innovation capabilities and export performance. Results from an emerging country, Cogent Business & Management, July 2024, Taylor & Francis,
DOI: 10.1080/23311975.2024.2375410.
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