In a world defined by uncertainty, accelerated technological change, and increasingly demanding global competition, SMEs must rethink the way they innovate. According to a recent study published in Management International, conducted in 2025 with 38 executives from Quebec-based SMEs, those that succeed internationally are not necessarily the ones that innovate the most internally, but rather those that know how to open their innovation beyond their borders.
These companies adopt a collaborative approach to innovation, making it better suited to the realities of international markets. When properly orchestrated, International Open Innovation (IOI) becomes a genuine lever for growth, differentiation, and sustainable performance.
Key Success Factors in Internationalisation
Leaders who perform well internationally have understood that it is essential to involve the entire ecosystem in the innovation process. They collaborate not only with their clients, suppliers, and distributors, but also, in some cases, with competitors when it comes to co-developing solutions tailored to specific markets.
This approach is based on strong professional networks, whether already established or progressively built as part of the internationalisation process. The most effective companies also capitalise on the international experience of their executives and cultural diversity within their teams, which acts as a catalyst for understanding local expectations. Finally, they systematically adapt their innovations to the specificities of the target market, often through direct collaboration with locally established stakeholders such as institutions, NGOs, or communities.
Barriers Slowing Innovation Dynamics
When some SMEs struggle to successfully implement international innovation, it is often due to internal obstacles such as resistance to change or fear of being copied. The lack of financial, time, or human resources also complicates the development of international partnerships.
In addition, external difficulties may arise, such as cultural distance, time zone gaps, limited knowledge of regulatory or economic environments, and at times a low tolerance for risk. In many cases, failure is not due to a lack of ideas, but rather a lack of openness and trust towards external partners.
Two Different Paths, One Common Goal
The study highlights two internationalisation strategies commonly observed among SMEs:
- The progressive approach, chosen by companies that build their international expansion through successive stages. This method relies on long-term relationship development, gradually reinforcing trust. It often leads to more cautious but sustainable innovation.
- The Born Global approach, adopted by companies that position themselves internationally from the early years of their existence. This model encourages agility, rapid adaptation, and at times a more opportunistic approach to innovation, driven by the immediate needs of markets.
Despite their differences, both approaches converge on a central point: in both cases, international open innovation is a decisive factor for success and long-term impact.
The Mindset of Successful Leaders
“Innovation can no longer be decreed internally; it must be co-created with the markets we aim to conquer.”
Leaders who succeed on a global scale adopt a clear mindset:
- They recognise that a significant share of value comes from outside the company.
- They assign a strategic role to external expertise and highly targeted collaborations.
- They use active listening to local needs as a true leadership tool.
- They turn cultural diversity not into a challenge, but into a driver of performance and innovation.
These leaders do not primarily seek to protect their ideas, but to enrich them through international collective intelligence.