Impact of Innovation Practices on Internationalization Activities of Indian SMEs in Retail Industry

Running head: RESEARCH ON INTERNATIONAL BUSINESS MANAGEMENT
Research Methods for International Business Management
Impact of Innovation Practices on Internationalization Activities of Indian Small and Medium
sized enterprises operating in retail industry
University Name
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Authors’ Note

2RESEARCH ON INTERNATIONAL BUSINESS MANAGEMENT
Executive Summary
The study aims to investigate in detail regarding the association between management of
innovations and internationalization among different small as well as medium sized
enterprises operating in the retail industry of the India. The study at hand evaluates the way
innovation influences internationalization, growth, worldwide growth, international
expansion along with performance of SMEs in the retail sector. Essentially, the study has the
intention to gain insight regarding different drivers along with barriers for particularly India
based SME retailers to mainly internationalize due to innovation actions undertaken, to
analyze in detail regarding associated infrastructures along with policy dimensions (with
respect to strengths as well as weaknesses) and to design specific recommendations for
attainment of improved strategies to support different small as well as medium sized
enterprises in this regard. Even though knowledge on internationalisation of SMEs in retail
industry, as it now stands, is at a nascent phase of development, the current study on Indian
SMEs in retail industry can provide significant insights into the neglected area of
international retail.

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Table of Contents
Introduction................................................................................................................................4
Research Objectives...................................................................................................................4
Purpose of the study...................................................................................................................5
Context of the Research.............................................................................................................5
Literature Review.......................................................................................................................7
Research Methodology.............................................................................................................13
Research Method:.....................................................................................................................13
Nature of research:...................................................................................................................14
Data Collection.........................................................................................................................15
Sampling:.................................................................................................................................16
Sources of Data:.......................................................................................................................16
Data Analysis Technique.........................................................................................................16
Ethical Consideration...............................................................................................................17
Limitations...............................................................................................................................17
Proposed Work Plan.................................................................................................................19
References................................................................................................................................20

4RESEARCH ON INTERNATIONAL BUSINESS MANAGEMENT
Introduction
The study at hand examines overall influence of innovation on strategic results related to
internationalisation activities among different small as well as medium sized enterprises in
the India. In particular, SMEs are the base of economic developments in particularly the India
and are identified to be significant contributors to process of recovery from recessionary
period. Essentially, the study helps in understanding the way growth as well as performance
of SME retailers are driven by the way business enterprises manage innovation as well as
internationalisation. In the beginning, combining both innovation and internationalization can
be reflected to generate the highest rate of growth potential for performance among small as
well as medium sized enterprises. Therefore, managing innovation as well as
internationalization might perhaps present theoretical and managerial threats since the two
subsists in an intertwined manner in SME retailers and might also have common antecedents.
Research Objectives
Research Objectives: The three primary objectives formulated for the study include the
following:-
- To evaluate important identified factors or variables (namely technological capabilities,
technology investment, strategic alliances as well as decision structure) that determines
relationship (ascertains causal associations) between internationalisation and innovation
strategy of firms
-- To critically evaluate the way innovation actions exerts impact on international
performance as well as worldwide expansion

5RESEARCH ON INTERNATIONAL BUSINESS MANAGEMENT
- To evaluate different barrier that inhibit international expansion of SME retailers in the
India
- To analyse the ways in which the identified barriers can be mitigated
Purpose of the study
The internationalisation of large transnational retailers is properly documented and numerous
researches have been conducted for understanding their motives as well as strategies for
expansion. However, no research in this particular area has identified internationalisation of
small- to medium-sized enterprises (SMEs) functioning in the retail sector and the way
innovation affects their internationalisation activities. Various theoretical insights derived
from the literature reflects gaps in existing research, that are related to the barriers, facilitators
and different processes of retail SME internationalisation (Chiva et al. 2014)
Context of the Research
Businesses enhance the degree and extent of internationalization by means of gaining more
information regarding the market and as the total amount of information enhances, so do the
possibilities for identifying diverse opportunities for innovative ideas, whether they stem
from different unmet requirements, rules and regulations or else imitation. This hereby
generates possibilities to augment performance in international context. Prior studies have
repeatedly instituted a positive association between innovation and performance.
Furthermore, association between innovation and performance has been observed in
internationalization context, since innovation in worldwide markets exert impact on
performance (Suarez-Perales et al. 2017). Therefore, whilst innovation has received only
limited research attention in the context of internationalization of small as well as medium
sized enterprises, there are two different reasons behind a positive association between

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innovation and performance of worldwide operation of SMEs (Hagen et al. 2014). This is the
first mover advantage and gap of performance. Again, first mover advantage are essentially
generated by means of innovation and this in turn have an influence on overall performance,
while gap in performance is generated by an alteration in the environment to which a
corporation is able to adapt to by means of innovating. Again, sustainable competitive
advantage can be reached by means of continuous innovation. Halilem et al. (2014) suggest
that product as well as process innovation might possibly inspire firms to internationalise,
while different knowledge intensive firms have the tendency to concentrate on generating
products that can necessarily be commercialised globally. In addition to this, entering
numerous foreign markets can be considered to be a way to overcome investments in mainly
research as well as development. Further, higher performance of export can be attained by
small corporations by means of an innovative differentiation stratagem. This in turn can help
in overcoming regional disadvantages for innovating firms that are expanding worldwide
(Kunttu and Torkkeli 2015). The association between innovation and financial performance
can be affected by the external business environment, as a competitive environment mixed
with incremental innovation augments financial performance in a dynamic business
environment. Again financial performance is said to enhance by means of radical innovation.
The current study intends to analytically evaluate the way continuous innovation can be
considered to be an important key to acquirement of competitive advantage and way
successful new global ventures to internationalize can be started. Therefore, the study at hand
intends to analyse the manner in which innovation in small as well as medium sized
enterprises in the India are positively associated to level of global performance. Also, the
study intends to delve deep into the matter to evaluate the extent to which innovation in
globally operating small as well as medium sized enterprises in the India positively contribute
to rate of growth. Essentially, new research studies also suggest that Indian SMEs are quite