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This paper aims to elucidate the relationship between entrepreneurial orientation, reverse innovation and international performance of emerging economy multinational enterprises (EMNEs).

The authors analyze archival data of Chinese limited companies between 2010 and 2016, including 11,230 firm-year observations about 1708 firms. In order to test the study’s mediation hypotheses, the authors apply an ordinary least square (OLS) regression.

The authors find evidence that the entrepreneurial orientation of EMNEs has a positive effect on reverse innovations. Furthermore, the authors find positive effects of reverse innovation on the international performance of EMNEs. This pattern of results suggests that the relationship between entrepreneurial orientation and international performance is partially mediated by reverse innovation.

The study’s findings help managers in EMNEs to promote reverse innovation by building and using their entrepreneurial orientation. It also helps them to set out and gauge the chances of success of their internationalization strategies. The findings also hold relevance for firms in developed economies as well, as they may understand which emerging economy competitors stand to threaten their positions.

The strategic role of reverse innovations – i.e. clean slate, super value and technologically advanced products originating from emerging markets – has generated considerable research attention. It is clear that reverse innovations impact the international performance of EMNEs. Yet how entrepreneurial orientation influences international performance is still underexplored. Thus, the current study clarifies the mechanism by examining and testing the mediating role of reverse innovation among the entrepreneurial orientation–international performance link.

The purpose of this paper is to determine the antecedents of reverse innovation.

Data were collected through an online survey administered using telephone assistance and sent to the 1,000 largest (in terms of revenue) foreign subsidiaries in Brazil. The responding companies numbered 167. For the data analysis, the authors chose the statistical technique of structural equation modeling.

The paper shows that reverse innovation is related to headquarters’ support, autonomy, and integration. Specifically, the authors consider the power of strategic integration between headquarters and subsidiaries as one of the important antecedents of reverse innovation.

Integration has an important role to reverse innovation. In order to stimulate integration, the executive of a subsidiary can make such efforts as invest in the mechanism of the relationship and exchange knowledge with headquarters. For example, it is recommended to encourage travel to the headquarters to more accurately align perceptions of parent and subsidiary executives and to utilize expatriates from headquarters to provide knowledge to subsidiaries about the main processes of the company and to promote subsidiary innovations.

Literature contains some articles discussing and relating some cases of reverse innovation. However, this paper shows the organizational structure necessary for reverse innovation.

Reverse innovation plays an important role in the innovation catch-up by latecomer enterprise. With the development of economic globalization, reverse innovation of the latecomer enterprise research has received increased attention day by day. The purpose of this paper is to reveal the key success factors and the realization mechanism of reverse innovation of the latecomer engineering and technical services enterprise.

This paper adopts the grounded theory analysis as the research method, by analyzing the phenomenon, collating the results, mining through the systematic data and verifying the theory temporarily. Therefore, it is ideal for the research to build the theory by analyzing the phenomenon. Before the serious coding begins, the reliability of coders is first examined. Coders extract some sample as the first test sample; then, three coders code according to the description and requirements and calculate the coding results according to the formulas that the noted scholar Holsti has proposed. Then, the authors perform the coding three times that include open coding, axial coding and selective coding, and then, the key factor model of reverse innovation of the engineering and technical service enterprise is refined.

The investigation reveals that technology localization, connection with the international market and industrial chain integration are the key success factors of reverse innovation of the latecomer engineering and technological service enterprise. Meanwhile, the latecomer enterprise gives full attention to local comprehensive comparative advantage to carry out technology localization during the reverse innovation. The diversified international coupling mechanism is an important support for technology localization. The engineering and technical service enterprise needs to pay attention to the service chain of the vertical integration in the process of reverse innovation.

The paper enriches the related research of reverse innovation based on a new industry and provides management support for innovation catch-up of the latecomer enterprises that have a big technological gap when compared with the multi-national companies.

Aims to provide empirical evidence of the relationships between and among reverse logistics, resource commitment, and innovation.

Mail surveys were sent to members of the Automobile Aftermarket Industry Association, a large trade association. Factor level results followed by between‐item results, as typically reported in general linear modeling and mediated regression, are developed using a split sample methodology. Ultimately, Resource‐Advantage Theory provided the framework for examining the impact of developing innovative reverse logistics‐related dynamic capabilities.

Resource commitment makes reverse logistics programs more efficient and more effective. However, the resources must be used in such a manner as to develop innovative capabilities/approaches to handling returns. Resource commitment was not found to be significantly related to innovation in reverse logistics at smaller firms. This is likely to be related to the level of resources available. Larger firms can commit greater resources and, thus, enjoy superior performance compared with smaller firms in the survey group.

The focus is somewhat narrow. New research should extend beyond the one industry examined. Future research should also expand to include more members of the supply chain and employ methods that allow examination of network relationships.

Reverse logistics deserves special attention in terms of resource commitment. Resources related to labor, i.e. allocating sufficient personnel to reverse logistics programs, are especially critical. Innovation in reverse logistics programs was found to be related to operational service quality at both small and large firms.

The research provides empirical evidence of the relationships between resource commitment and innovation – and how reverse logistics program performance is influenced. This has important implications with respect to customer relations. It can also be used to provide rationale for securing adequate resource commitment for reverse logistics programs.

The authors, leading authorities on global innovation, warn that Western companies targeting emerging markets to help drive growth will likely find that the traditional strategy of global localization will prove inadequate. An alternative is their new concept of reverse innovation which this paper aims to introduce.

One example is the portable ultrasound machine developed originally by GE in the early 2000s to meet the particular needs of the Chinese market. Technology advances have since helped propel the growth of a $250 million business opportunity for GE globally, through finding many new applications in the USA and other advanced economies.

Historically, multinationals innovated in rich countries and sold their products in poor countries. Reverse innovation is doing the opposite.

Reverse innovation also highlights the potential for very low price‐point innovations originating in the developing world to generate new market demand back in the richer economies.

Reverse innovations can have global impact. Ultimately, they have the potential to migrate from poor countries to rich ones.

Past research demonstrated that reverse innovation initiatives generate tremendous returns for innovators. However, the focus is on multinational corporations (MNCs). This paper aims to provide a framework how Western small and medium-sized enterprises (SMEs) can drive reverse innovation success.

The author adopted an exploratory single case study research design. It draws on the findings from a German SME operating in the healthcare industry.

The research reveals that SME can use emerging markets growth opportunities by leveraging open business networks and a clear strategic focus on emerging economies as well as reverse commercialization. The findings provide a framework for managers of SMEs.

This paper analyses an important way for SMEs to enter emerging markets that has not been explored yet in the management literature and business practice. It offers deep insights of a unique case.

Reverse innovation has been claimed to be the new emerging paradigm on how to succeed in emerging markets before spreading to more mature ones. This study aims to investigate how the BB cream, a concept that gave birth to one of the recent most impressive worldwide breakthrough products in cosmetics, was successfully integrated into a growth-through reverse innovation strategy by a Western leading brand, Garnier, in its domestic market.

Using a single case study design that combines brand and product levels of analysis, this paper examines how reverse innovation/BB cream contributed to (re)build perceptions of brand superiority. Data were extracted from the IRI Census Database (retail panel data) and from various other market sources. Additional insights were collected through semi-structured interviews with top executives. Some data, as they remain confidential, are not included in the paper.

Reverse innovation, although counter-intuitive regarding one of its fundamental assumptions (i.e. a low-cost/low-price strategy targeting price-sensitive consumers), can be used within a niche strategy to help brands develop a radically new offer that justifies a price premium. In this regard, it has to be managed step-by-step, from appropriation to exploitation and, finally, “extinction” in a given market segment.

Evidence is scarce on how Western companies/brands can integrate reverse innovation into their growth strategies. Further investigation is required on this emerging paradigm.

The case of Garnier BB cream invites marketing managers to think differently about where to look for opportunities and how to grow in stagnant markets. Moreover, the inherent latent value of a reverse innovation can serve to trade up the brand with both volume and value benefits, despite the common claim that it is related to a volume strategy. Thus, it opens the range of possibilities to escape commoditization and price wars.

This paper demonstrated that reverse innovation is not limited to the bottom of the market. The story of the BB cream concept, which has been appropriated and valorized by the leading cosmetic brand Garnier through a niche strategy, supports this argument. In addition, instead of viewing the niche strategy as a methodological/theoretical stage within the segmentation–targeting–positioning process, this case study highlights it as a creative process linked to innovation, which helps a brand and/or company to define a new territory within its market.

Interest in reverse innovation (RI) is increasing. According to the authors’ review, more than 350 reliable sources (scientific publications, academic books and working papers) examine or at least discuss the concept. As RI gains popularity among academic authors, some discrepancies have started to appear. This wealth of publications could impact prior advancements related to understanding of the phenomenon. The purpose of this paper is to decrease fragmentation and focus on identifying and understanding RI.

A systematic review of RI was conducted. The review conformed to a rigorous set of core principles: it was systematic (organized according to a method designed to address the review questions), transparent (explicitly stated), reproducible and updatable, and synthesized (summarized the evidence relating to the review question).

This systematic review provides an improved theoretical and practical framework for the concept of RI. In terms of theory, the authors have demonstrated that the idea behind the concept is not entirely new. A consensus on the definition of RI is not reached in the literature, and descriptions in organizational theory contexts are sometimes misleading. The authors analyzed all the various definitions provided in the literature. From a practical point of view, the authors have explained the academic interest in RI in relation to organizational strategy, in particular the context in which strategies are adopted. The concept of RI has significant managerial implications, and the authors have proposed a conceptual framework to help managers understand and grasp the implications of RI. Finally, the authors have provided suggestions for future research on RI.

To the best of the authors’ knowledge, this is the first exhaustive literature review on RI.

Contrasting local adaptation, which focusses on foreign multinationals learning about and adapting to local (host country) culture and environment, reverse adaptation refers to the case where an MNE’s local employees learn, assimilate and modify their personal behavior (e.g. values, norms) and professional competence (e.g. standards, goals, language, knowledge, capabilities) in order to fit the MNE’s global mindset and global competence set so that they can be internationally reassigned. The purpose of this paper is to take the first step toward addressing this nascent phenomenon and practice.

This study uses combined inductive and ethnographic methods to explore the importance, process and practice of reverse innovation. This study defines reverse adaptation, illustrates the major driving forces underlying reverse adaptation, and suggests how MNEs should prepare for it. As reverse adaptation is a promising area for research, this paper also proposes a research agenda for international management scholars.

MNEs need to act at both local and global levels in a way that recognizes the interdependence between the two. Too often global companies have approached their local talent needs in an uncoordinated and unproductive way. Reverse adaptation view suggests that MNEs can create a competitive advantage by taking a global approach to talent. Cultivating and transforming local talent to become global talent necessitates endeavor from a wide range of corporate, subsidiary and individual levels, in cultural, professional, structural, informational and organizational aspects.

Reverse adaptation is a promising area of research because it provides the opportunity to enrich mainstream theories and literatures in a number of areas. This nascent phenomenon has not yet been studied, and this paper represents the first effort to do so. From both academic and practice viewpoints, reverse adaptation has a significant impact on global talent management, knowledge flow across borders, capability catchup and global integration design. Today’s glocalized business world, with heightened integration of world economy, creates an expectation for the continuing growth of reverse adaptation.