Vol. 11 No. 2 (2025)
June

Articles

The role of innovation in the internationalisation process of Slovakian businesses

Published 2025-06-30

  • Jakub Garncarz
    • ,
  • Adam Michalik

Jakub Garncarz
Krakow University of Economics

Adam Michalik
Krakow University of Economics

Abstract

Objective: The article aims to examine the relationship between innovation and export performance among Slovak firms. In particular, we investigated whether innovative activities, including process and product/service innovations, significantly enhance export intensity, and how firm size moderates this relationship.

Research Design & Methods: This study adopted a quantitative research design to examine the relationship between innovation and export performance among Slovak firms. We based the empirical analysis on a sample of 292 firms, whose secondary data included measures of export performance and innovation indicators. The analysis employed both descriptive statistics and the Mann-Whitney U test. We performed data analyses using Excel and Statistica.

Findings: The empirical results revealed that innovative firms, regardless of their size, exhibited substantially higher export intensity compared to non-innovative counterparts. Specifically, small innovative companies exported an average of 19.34% of their total sales versus 8.33% for non-innovative ones; the difference increases for medium-sized firms (44% vs. 17.96%) and large companies (57.26% vs. 40.85%). Moreover, further analysis highlighted that firms implementing process innovations achieved markedly higher export sales, while those combining both process and product/service innovations experienced a synergistic boost in export performance. The Mann–Whitney U test confirmed that these differences are statistically significant, reinforcing the notion that innovation is a pivotal driver of international market success.

Implications & Recommendations: The findings suggest that policymakers and business leaders should prioritize fostering innovative practices to enhance export performance, especially among medium and large enterprises. To capitalize on innovation as a growth engine, recommendations include increased support for R&D, streamlined access to funding for innovative projects, and the development of strategic programs aimed at integrating process and product innovations simultaneously. Such measures are expected to contribute to improved competitiveness and greater international market expansion for Slovak firms.

Contribution & Value Added: The novelty of this article lies in its targeted focus on Slovak enterprises – a mid-sized economy – using a robust quantitative approach that integrates World Bank Enterprise Surveys data with the application of the Mann–Whitney U test. Unlike prior studies that primarily focus on larger economies, this research provides context-specific insights into the interplay between innovation and export performance in Slovakia, offering nuanced evidence on how different innovation types and firm sizes interact to shape international competitiveness.

Keywords

product innovation, process innovation, internationalisation, export performance, quantitative analysis, international competitiveness, Slovakia

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Author Biography

Jakub Garncarz

Research and teaching assistant at Krakow University of Economics, Department of International Trade at College of Economics and Finance. His research interests include international entrepreneurship and Artificial Intelligence.

Adam Michalik

Assistant Professor at Krakow University of Economics, Department of International Trade at the College of Economics and Finance. His research interests include entrepreneurship, foreign investments, and the security of business transactions.

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