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Book part
Publication date: 4 March 2021

Virginia Hernández, María Jesús Nieto and Alicia Rodríguez

In this chapter, the authors study how external knowledge contributes to the innovation results of firms in transition economies. Specifically, the authors distinguish between…

Abstract

In this chapter, the authors study how external knowledge contributes to the innovation results of firms in transition economies. Specifically, the authors distinguish between product and process innovations and identify the geographical origin of external knowledge – from the home country or from abroad. Theoretically, the authors discuss the innovation systems of transition economies and the effects of foreign and national external knowledge on product and process innovations in these under-researched contexts. Using a sample of firms from 19 countries from wave V of the Business Environment and Enterprise Surveys, the authors find that foreign and national external knowledge both contribute to the achievement of product and process innovations. However, the two types of external knowledge exert different effects depending on the innovation outcome analyzed. Firms in transition countries that incorporate foreign external knowledge are more likely to achieve product innovations than those that acquire national external knowledge. In contrast, both types of knowledge are equally useful for achieving process innovations.

Details

The Multiple Dimensions of Institutional Complexity in International Business Research
Type: Book
ISBN: 978-1-80043-245-1

Keywords

Article
Publication date: 18 January 2024

Se Ho Cho and John Cantwell

The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.

Abstract

Purpose

The purpose of this study is to investigate the impact of an industry’s connectedness to foreign countries on knowledge sourcing.

Design/methodology/approach

The authors examine the research model through probit regression techniques to the 472,303-patent data across 16 industries derived from the United States Patent and Trademark Office.

Findings

The results suggest that international connectedness increases the accessibility of foreign knowledge and helps the accumulation of technological capability. Thus, this paper provides a better understanding that international connectedness can be critical for exploiting knowledge dispersed worldwide and influencing intra- and interindustry knowledge-sourcing behavior in the home country.

Originality/value

While prior studies have mainly paid attention to the relationship between parents and subsidiaries in foreign countries for international knowledge sourcing, the authors attempt to analyze international and local knowledge sourcing with a broader set of knowledge sourcing channels at an aggregate level. By considering an industry’s export intensity and inward foreign direct investment, this study reveals specifically how the extent of an industry’s international connectedness influences knowledge sourcing from both abroad and locally.

Article
Publication date: 8 June 2020

David Freund, Robert Lee, Heinz Tüselmann and Qi Cao

The main purpose of this study is to explain the combined effects of host country weak network ties and absorptive capacity on the innovative foreign knowledge inflows of…

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Abstract

Purpose

The main purpose of this study is to explain the combined effects of host country weak network ties and absorptive capacity on the innovative foreign knowledge inflows of international high-tech small- and medium-sized enterprises (SMEs).

Design/methodology/approach

Data are drawn from the two largest and most authoritative German Federal Government census-databases of biotech and nanotech SMEs. A structured survey questionnaire was administered and regression analysis adopted.

Findings

This study demonstrates weak network ties in the host country and developing absorptive capacity produce a combined effect that positively influences international high-tech SMEs innovative foreign knowledge inflows. Also, host country weak network ties and absorptive capacity when considered separately, each respectively, positively influence innovative foreign knowledge inflows.

Practical implications

The results help inform key personnel in international high-tech SMEs about the relevance of host country weak network ties and absorptive capacity for foreign knowledge inflows. In addition, the results help policymakers and think-tanks to promote tailored advice and guidance e.g. those policymakers implementing the EU Entrepreneurship 2020 Action Plan.

Originality/value

There is a recent call in the literature to combine network theory and absorptive capacity theory to better explain knowledge creation in the context of international high-tech SMEs knowledge sourcing. By addressing this call, the study provides a more refined and comprehensive account of international high-tech SMEs innovative foreign knowledge inflows.

Details

Multinational Business Review, vol. 28 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 16 October 2017

Chong-Hoe Kim and Byung Il Park

The purpose of this paper is to pinpoint key conduits promoting knowledge spillovers through inward foreign direct investment in the banking sector.

Abstract

Purpose

The purpose of this paper is to pinpoint key conduits promoting knowledge spillovers through inward foreign direct investment in the banking sector.

Design/methodology/approach

The data were obtained by a survey. The survey data were collected from managers of five major local banks in Korea. The survey was conducted during May 10-June 30, 2015 with a total of 581 self-administered responses finally collected at the end (response rate: 60.5 percent).

Findings

Based on the survey data collected from the survey, the results indicate that knowledge spillovers from foreign to local banks occur in the Korean context. Demonstration effect, worker mobility and absorptive capacity of local banks are found to be effective conduits for knowledge spillovers. In addition, the authors have also found that competitive pressure negatively influences worker mobility leading to knowledge spillovers while two other elements (i.e. demonstration effect and absorptive capacity) positively mediate the relationship between competitive pressure and knowledge spillovers.

Practical implications

It is essential for the managers of multinational banks vigorously consider placing a strong emphasis on security of internal information and management of own personnel as the knowledge outflow through the demonstration effect and worker mobility is critical. For the managers of local banks, the discoveries suggest that active investment in human resources to maximize knowledge spillovers through the demonstration effect and through absorptive capacity is heightened by building an internal knowledge base.

Originality/value

The study contributes to the extant literature in the field of international business in two key ways. First, it examines the knowledge spillovers in the banking sector, a regulated industry, in Korea where empirical research is sparse. This paper’s second contribution is the finding of the key conduits of knowledge spillover phenomena by predicting and identifying the elements which affect the magnitude of knowledge flows from foreign to local banks.

Details

Management Decision, vol. 55 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 15 January 2019

Kui Wang and Wang Tao

The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging market firms’…

Abstract

Purpose

The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging market firms’ innovation performance. In addition, this paper also seeks to search for contextual variables that affect this complementarity.

Design/methodology/approach

This study takes systems approach to examine complementarity, combining a “productivity” and an “adoption” approach. In addition, interaction approach is also used as robustness check.

Findings

The authors show that the positive effect of export activity on firms’ growth rate is higher for firms that also engage in technology import, and vice versa. Furthermore, they show that, Ceteris paribus, firms’ adoption of one cross-border learning mechanism (e.g. entering export markets) positively influences the adoption of the other (e.g. technology import). Moreover, this complementarity is only significant for firms from province with low level of marketization.

Research limitations/implications

This inconsistency about learning-by-exporting and technology import on innovation can be resolved, at least partially, by the complementarities perspective. This paper also reveals two mechanisms of learning-by-exporting: the indirect effect of export on innovation through increasing the likelihood of adoption decision of importing technology and enhancing the positive effect of technology imports.

Practical implications

The potential of combining the two strategies should not be ignored by managers. To improve regional competitiveness, local governments should try best to improve the efficiency of customs to help firms realize the synergistic effect of learning-by- exporting and learning-by-technology-importing.

Originality/value

This study first explores the positive complementarity between the two cross-border learning mechanism in sharping EEEs 2019 innovation performance and identifies the condition to realize the synergistic effect of learning-by-exporting and learning-by-technology-importing.

Details

European Journal of Marketing, vol. 53 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 5 December 2023

Ranjan Chaudhuri, Demetris Vrontis and Sheshadri Chatterjee

“Born global firms” are those organizations which, from their inception and by nature, adopt an essentially global-scale entrepreneurial functional and attitudinal strategy for…

Abstract

Purpose

“Born global firms” are those organizations which, from their inception and by nature, adopt an essentially global-scale entrepreneurial functional and attitudinal strategy for growth. They seek to gain significant competitive advantage by utilizing their internal resources while leveraging external environment potentialities, to sell their outputs internationally. The aim of this research is to investigate the influence of the external business environment and the dynamic capabilities of born global firms, on their strategic and operational performance, as well as the role of leadership vision on their internationalization performance.

Design/methodology/approach

Initially and resting on extant literature with pertinent foci, including the absorptive capacity and the dynamic capability view theories, a conceptual model is proposed. Subsequently, the model is validated through the partial least square structural equation modeling technique, based on 417 respondents from Indian firms.

Findings

The study concludes that the external business environment and internal dynamic capabilities of born global firms have a significant and positive impact on their strategic, as well as operational performance; with leadership vision playing a significant moderating role to this relationship. The study finally presents the executive implications of the findings and identifies the avenues for further scientific research.

Originality/value

This is a unique study on the topic, both in relation to resources/capabilities versus performance and with regards to the leadership vision's role. It moreover focuses on a primary business force, India, which comprises prime examples of global entrepreneurship. The research constituting a significant contribution to knowledge, as research on how small firms can strategically grow so rapidly and effectively, is still far from conclusive, particularly under the present evolutions that incessantly redefine the contextual business forces upon which strategy is drawn.

Article
Publication date: 29 September 2023

Shubh Majumdarr, Shilpee A. Dasgupta and Rayees Farooq

Compared to their counterparts in developed economies, businesses established in emerging economies continuously struggle due to resource and time constraints. Open innovation…

Abstract

Purpose

Compared to their counterparts in developed economies, businesses established in emerging economies continuously struggle due to resource and time constraints. Open innovation (OI) allows these firms to bridge the gap and advance towards technological advancements; however, the scholarly knowledge on the subject is not systematized. Thus, this study synthesizes the extant literature, proposes a framework and highlights future research avenues for domain advancements.

Design/methodology/approach

Based on the Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR) framework, the study evaluates 79 journal publications from Scopus and Web of Science (WoS). The bibliometric analysis highlights annual publication trends and research clusters, whereas TCCM analysis provides deep analysis into applied theories, context and characteristics, i.e. OI–performance linkage, barriers, mediators and moderators, followed by employed methodologies in the domain.

Findings

The bibliometric results showcase a rising publication trend, significant research clusters and trends, whereas the content analysis via TCCM framework identifies theories, contexts and methodologies employed in the domain. In terms of characteristics, the OI–performance relation and barriers at diverse levels, followed by the moderating and mediating mechanism, are further explained in detail.

Originality/value

This is the first study to examine OI and firm performance in the context of emerging economies and employ rigorous frame-based bibliometric and content analysis measures, establishing the foundations for a comprehensive understanding.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 26 February 2024

Xiaoyuan Li

The purpose of this study is to investigate the impact of rapid internationalization by emerging-market multinational enterprises (EMNEs) on their innovation performance. It also…

Abstract

Purpose

The purpose of this study is to investigate the impact of rapid internationalization by emerging-market multinational enterprises (EMNEs) on their innovation performance. It also seeks to identify any potential moderating factors that could influence this relationship.

Design/methodology/approach

By analyzing data from listed Chinese MNEs from 2012 to 2022, this study applies a negative binomial regression model to test the research hypotheses.

Findings

This study uncovers an inverted U-shaped relationship between the internationalization speed of EMNEs and their innovation performance. It also suggests that strong absorptive, learning and managerial capacities could play positive moderating roles in the effect of internationalization speed on EMNEs’ innovation performance.

Originality/value

This study highlights rapid global expansion, promoting new knowledge acquisition for EMNEs. However, due to time-compression dilemmas with limited EMNE firm-specific advantages, overly accelerated internationalization hinders learning effectiveness. Additionally, this study reveals the critical importance of three firm-specific capacities in EMNEs – absorptive, learning and managerial capacities – in efficiently assimilating newly acquired knowledge from foreign markets and enhancing their innovation performance through rapid internationalization.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Content available
Book part
Publication date: 4 March 2021

Abstract

Details

The Multiple Dimensions of Institutional Complexity in International Business Research
Type: Book
ISBN: 978-1-80043-245-1

Article
Publication date: 25 October 2011

Suli Zheng, Wei Zhang and Jian Du

The purpose of this paper is to clarify the concept of dynamic capabilities from the knowledge‐based perspective and investigate the mechanisms of dynamic capabilities on

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Abstract

Purpose

The purpose of this paper is to clarify the concept of dynamic capabilities from the knowledge‐based perspective and investigate the mechanisms of dynamic capabilities on innovation performance in networked environments.

Design/methodology/approach

This paper designed a seven‐point Likert questionnaire measuring the dynamic capabilities, innovation performance and network embeddedness and a sample of 218 Chinese manufacturing firms were surveyed. Structural equation modeling method was used to statistically test the theoretical hypothesis.

Findings

Significant relationships were found between dynamic capabilities and innovation performance and knowledge combination capability played a mediating role in this relationship. For the links between network embeddedness and dynamic capabilities, knowledge acquisition capability was affected mainly by relational embeddedness and the diversity of network and joint problem solving contributed much to knowledge combination capability.

Research limitations/implications

This paper deepened the understanding on dynamic capabilities and the mechanism between network embeddedness, knowledge‐based dynamic capabilities and innovation performance. In the future, the construct of knowledge‐based dynamic capabilities calls for more examination and verification.

Originality/value

Drawing on the literature of dynamic capabilities framework, knowledge‐based view and the network model, this study extends the literature of dynamic capabilities and its link with innovation performance in networked environments. Using survey data and structural equation modeling, this study offers rich evidence on the contribution of dynamic capabilities on innovation performance and the antecedents of dynamic capabilities.

Details

Journal of Knowledge Management, vol. 15 no. 6
Type: Research Article
ISSN: 1367-3270

Keywords

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