Navigating small and medium enterprises internationalisation in an emerging economy:The role of innovation and certification in overcoming corruption barriers

Abstract

Corruption is widely acknowledged as a critical factor shaping the internationalisation strategies of small and medium enterprises (SMEs), yet its effects remain contested. Drawing on institutional theory and the resource-based view, this study investigates how innovation and quality certification moderate the relationship between corruption and SME internationalisation. Using firm-level data from 236 Indian small and medium enterprises in the World Bank's 2022 Enterprise Survey and applying ordinary least squares regression, we find that corruption exerts a positive influence on SME internationalisation. However, this relationship is significantly attenuated when firms engage in innovation and adopt quality certification, with innovation exerting the stronger moderating effect. These findings contribute to international entrepreneurship literature by illuminating the conditional roles of innovation and certification in mitigating the institutional voids associated with corruption. The study also provides actionable insights for policymakers and entrepreneurs seeking to enhance the competitiveness of small and medium enterprises in corruption-prone environments.