Innovation plays a vital role in the internationalization process of international new ventures (INVs). However, to date, there are insufficient empirical studies exploring the innovation decisions that enable these firms to grow once the internationalization process has started.

Financial constraints have been identified as a major drawback of innovation activities and productivity of small entrepreneurial firms, especially in developing countries. While external financial supports provide incentives for innovation, we know much less about their effects in the context of developing market firms.

Scholars are increasingly emphasizing the importance of investing in a broad innovation strategy when pursuing competitive advantage and growth in foreign markets. However, the majority of existing studies focus mainly on developed economies with high shares of innovative firms.