The Influence of New Product Development Capabilities on the Internationalization Process of Small and Medium Enterprises

Sammanfattning: Due to the globalization trend, the internationalization of small and medium enterprises (SMEs) has become a common practice in the last decades. The New Product Development (NPD) is recognized as innovative value creating effort that has become important in the high-risk, globally competitive environment, and small firms seem to be more effective in utilizing product design and manufacturing involvement, while large firms standardize and formalize the product development practices. Thus, the main focus of this research study is the NPD capabilities and the internationalization process. The main research question focuses on whether and how the NPD capabilities influence the internationalization process of the companies in the health industry. A qualitative study is carried out to answer the research question by interviewing three Swedish companies in the health industry. The empirical findings and analysis conclude that the NPD capabilities and the internationalization process go along with each other and they are both dependant. There is a positive relationship between the NPD capabilities and the internationalization process, but it is not yet defined which one has a greater influence.