Strategic renewal in internationalising SMEs: a paradox perspective

Abstract

Purpose This study aims to explore how internationalising small and medium-sized firms (SMEs) sustain strategic renewal under conditions of enduring complexity. Challenging the established notions of alignment and fit, this study adopts a paradox lens to examine how persistent contradictions shape growth and renewal. Design/methodology/approach Using a multiple case study design, the authors investigate four internationalising SMEs from Poland. Drawing on semi-structured interviews, secondary data and using inductive analysis, this study identifies the paradoxes underpinning ongoing strategic renewal in internationalising SMEs. Findings This study identifies three core paradoxes (order versus chaos, dynamism versus inertia and command versus response) that SMEs work with over time rather than resolve. Instead of progressing towards a stable state of fit, firms evolve through oscillation between contradictory demands, using ongoing frictions as catalysts for renewal. Practical implications The findings emphasise the importance of paradox literacy among SME leaders. Rather than striving for stability, firms may benefit from embracing strategic dualities as sources of creativity, innovation, adaptability and growth. Leadership should focus on enhancing the ability to engage with paradoxes and competing pressures in dynamic international contexts. Social implications This study acknowledges some limitations of this work, which opens new directions for future research. The multiple-case design prioritises theoretical replication over statistical generalisation. The amplitude and occurrence of the three paradoxes likely vary with intensity of institutional change, capital requirements and product modularity. The authors therefore see their contribution as a middle-range account of contradiction-driven renewal in internationalising SMEs, inviting replication in other regions, sectors and growth phases. Originality/value By leveraging paradox theory in the strategic renewal, this study challenges the dominant assumption of equilibrium-seeking and strategic fit in internationalisation. The study contributes to SMEs’ internationalisation research by demonstrating that ongoing contradictions can serve as productive conditions for international growth, rather than a flaw to be corrected. Furthermore, it argues that strategic renewal emerges not from achieving coherence, but from sustained engagement with contradiction over time.