While there has been considerable research on dynamic capabilities in internationalisation expansion, there remains fragmentation and lacking knowledge on their role in supporting entrepreneurial innovation in foreign markets. By drawing on dynamic capabilities, this study contributes to bridging this gap by studying how the dynamic managerial and networking capabilities of Chinese SME entrepreneurs influence how their firms innovate when expanding internationally. Our findings suggest that there is a negative relationship between internationalisation and innovation for Chinese SMEs. Additionally, the dynamic capabilities can positively moderate the above-noted negative relationship. We found no evidence to prove any mutually reinforcing effects between these strategies. This paper provides unique insights into the Chinese context and international entrepreneurship (IE) literature.

Sustainability has been identified as a major concern on a global scale. This paper aims to explore how international Small and Medium Enterprises (SMEs) explore and exploit opportunities to develop their business model in light of the circular economy principles. The study is based on six case studies of international SMEs in China using an exploratory and grounded research methodology. Building on the micro-foundations research, our findings illustrate that international SME managers (SMEMs) exhibit a sustainable entrepreneurial motivation to develop a circular business model (CBM). They are Leveraging the government’s policy as an external enabler of sustainability and integrating innovation in their value chain to develop a circular business model. This study contributes to studies on internationalisation and sustainability and, more specifically, sheds light on a less explored case of international SMEs' circular business model.

This study investigates the dynamic interplay between internationalisation and innovation in Small and Medium-sized Enterprises (SMEs). Specifically, it addresses the critical question: How does internationalisation affect innovation in SMEs? Leveraging a comprehensive dataset of Canadian SMEs, we utilise cluster analysis to categorise the firms into pathways based on their scale, scope, pace, and timing of internationalisation, followed by regression analysis to examine the impact of these strategies on innovation performance. Our findings demonstrate significant associations between several pathways and the innovation levels within these enterprises. The study’s insights underscore the pivotal role of internationalisation strategy in driving innovation and growth in SMEs, offering practical implications for business leaders and policymakers aiming to foster innovation through global expansion.