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The study aims to explore the role of non-mainstream financial schemes in supporting innovation within SMEs in developing countries, particularly in sub-Saharan Africa. It investigates how informal credit, business group affiliation and foreign and state ownership arrangements influence SMEs’ innovative activities in environments with limited access to formal financial resources.

The research utilizes data from the World Bank’s Enterprise Surveys, focusing on 8,466 firms across 11 sub-Saharan African countries from 2011 to 2020. A logistic regression analysis was conducted to assess the impact of various financial sources on SMEs’ innovation outputs, particularly incremental innovations, due to data constraints on radical innovations.

The findings reveal that informal credit significantly supports SME innovation, while business group resources can hinder innovative activities by restricting firms to routine tasks. State ownership positively influences innovation, whereas the impact of foreign ownership is inconclusive. These results highlight the critical role of alternative financial mechanisms in the innovation activities of SMEs in resource-limited settings.

This study contributes to the literature by providing empirical evidence on the effects of non-mainstream financial schemes on SME innovation in developing countries. It offers new theoretical insights into how SMEs navigate financial constraints to foster innovation and suggests policy implications for improving financial support systems for SMEs in such contexts. The research underscores the importance of contextualizing entrepreneurship studies to better understand the unique challenges and opportunities faced by SMEs in developing regions.

Small and medium-sized enterprises in developing countries, particularly in the Sub-Saharan African region, find it hard to innovate due to severe resource constraints and high institutional voids. Given this, the paper examines three international strategic responses that small and medium-sized enterprises in Sub-Saharan Africa adopt to implement innovations in the face of weak institutional environments.

Using comprehensive data from the World Bank Enterprise Survey, the study applies the Instrumental Variable Probit approach to analyse a sample of 8,466 SMEs from eleven countries in the Sub-Saharan African region.

The empirical results show that foreign ownership negatively affects product and process innovation. Additionally, the results reveal that small and medium-sized enterprises that leverage exporting and international quality certifications are likely to implement innovations.

The paper contributes to the literature by suggesting that small and medium-sized enterprises must exploit strategic alternatives to improve their innovation efforts when operating in a weak institutional environment. Thus, by exploring international strategic responses to institutional difficulties when implementing innovations, this paper goes beyond the prevailing research approach in developing countries that mainly emphasises the barriers to innovations.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

This paper identified that small and medium sized enterprises (SMEs) are capable to innovation when faced with the adversity of limited resources. They can explore international options to improve opportunities for success.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

This study aims to conduct a systematic review of the existing literature on export promotion and foreign market entry strategies for small and medium enterprises (SMEs).

This study incorporates systematic literature review by using bibliometric technique and content analysis of 195 scholarly papers published between 2000 and 2024 obtained from Scopus database, using the PRISMA principles and a methodological framework.

The use of quantitative analysis has shown dynamic patterns in publication trends, characterized by notable increases in recent years. These trends align with the changing dynamics of the global economy and shifting priorities in international commerce. The study reveals thematic frameworks using author collaboration analysis, word cloud visualizations and a thematic map, providing insights into a significant motor, niche and developing issues that shape the discussion on the international growth of SMEs.

It offers significant insights that can benefit academics, policymakers and practitioners who are interested in understanding and navigating the intricate terrain of export promotion and market access strategies specifically tailored for small firms.

To the best of the authors’ knowledge, the study is the first of a kind that presents a systematic examination of the existing body of knowledge on the internationalization of SMEs.