Analyzing the relationship between innovation and internationalization in family SMEs
The main purpose of this research is to investigate the relationship between innovation and the degree of internationalization of family SMEs. Based on a sample of 247 Belgian family SMEs, the results from the structural equation modelling analysis show that innovation is positively related to the degree of internationalization. It also appears that moderate to high levels of nonfamily involvement in the top management team attenuate this positive relationship. In contrast, the positive relationship between innovation and the degree of internationalization is accentuated when second or later generations are in charge of the company.