Business angels, venture capitalists, and open innovation: A pathway for SME success

Open innovation has become a key strategic lever for small and medium-sized enterprises (SMEs) operating in dynamic and uncertain economic environments. However, few studies empirically examine how open innovation influences SME internationalization, particularly in developing countries. This study addresses this gap by analyzing the internal and external determinants, where internal determinants originate within the organization and external determinants stem from its surrounding environment, together shaping organizational outcomes. Using a mixed-methods approach, the research combines qualitative interviews with managers of innovative firms in Tunisia and quantitative analysis through linear regression to evaluate the proposed theoretical model. The findings identify critical factors affecting internationalization and highlight the strategic role of business angels and venture capital investors in developing international networks and stimulating open innovation. These results make a significant contribution to the literature on innovation and SME internationalization by elucidating the mechanisms through which external investor support enhances organizational agility and international competitiveness. The practical implications are relevant for policymakers and entrepreneurial ecosystem actors seeking to foster an environment conducive to the global growth of SMEs.