Abstract:

This paper deals with how small- and medium sized companies (SMEs) with disruptive innovations can enter the international market by applying a market-orientation business model.

Disruptive innovation is a long-term and highly risky process to manage, because it develops from new ideas, which in several ways challenges incumbent innovation. Due to their flexibility and capability to switch business strategies quickly, SMEs are in a better position than market-leading corporations to internationalize disruptive innovations. However, the process from developing innovation to entering the market is complex, and SMEs tend to fail because of built-in resistance to change in incumbent business innovation systems, too much focus on their innovation techniques, resource constraints, and the ignorance of market knowledge. Researchers for this project argue that SMEs need to apply a before-market internationalization business model rather than physically entering the market to gain experiential learning. Based on disruptive innovation and market-orientation literature, a theoretical business model is developed built on collaboration between companies, researchers, and networking parties.