Innovation and Internationalisation. Evidences from italian furniture industry

Several studies pointed out the existence of a complex relationship between innovation and internationalisation, influenced by different firm-industry- and market-specific factors, thereby suggesting the need for further research. This paper contributes by integrating literature with a deeper view of the multifaceted phenomenon of innovation and its relationship with internationalisation in the specific context of Italian furniture companies. In a systematic effort to match the empirical world to theory, we adopted a qualitative approach based on a multiple-case study of four Italian furniture SMEs. For the interviewed managers, innovation is a multifaceted concept, sector specific and not easy to define. However, most of them underline the strategic relevance of innovating along the brand dimension. For the analysed firms, the relationship between innovation and internationalisation is strategic and often mutually dependent. Product innovation, favouring entrance and presence in international markets, represented a key driver of the internationalisation processes of the firms. At the same time, the constant interaction with foreign demand presented the need for further innovation along different business innovation dimensions. This study points out the critical role of the market orientation of a firm and underlines the importance of the adaptation versus standardisation dilemma. Indeed, if innovation means to create new value and not only new things, along different dimensions, then firms need an adaptive approach to the local market. This is especially significant in the so-called emerging markets.