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Firm capabilities, technological dynamism and the internationalisation of innovation : A behavioural approach

Published on Jan 1, 2018in Journal of International Business Studies 7.72
· DOI :10.1057/s41267-017-0101-0
Torben Schubert14
Estimated H-index: 14
(Lund University),
Elisabeth Baier7
Estimated H-index: 7
,
Christian Rammer21
Estimated H-index: 21
Cite
Abstract
We develop a behavioural framework of bounded rational decision-making under uncertainty to analyse the role of technological dynamism in the firm’s environment for its decision to internationalise innovation. Applying prospect theory, we argue that technological uncertainty in the firm’s environment affects its risk preferences differently depending on its technological capabilities. A key prediction is that firms with low capabilities will internationalise innovation when faced by technological uncertainty while firms with high capabilities will concentrate their innovation at the home-base. We also argue that our behavioural approach based on prospect theory is not a stand-alone programme but benefits from the integration with traditional concepts in IB. In particular, we make a case that organisational measures fostering absorptive capacity, such as intensive personnel exchange between headquarters and subsidiaries, can help to attenuate the high-capability firms’ tendency to concentrate innovation at the home-base when faced by high uncertainty. We corroborate the predictions of our framework based on data from the German part of the Community Innovation Survey.
  • References (123)
  • Citations (4)
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References123
Newest
Published on Jun 1, 2016in Journal of International Business Studies 7.72
Julien Gooris2
Estimated H-index: 2
,
Carine Peeters12
Estimated H-index: 12
(Katholieke Universiteit Leuven)
This study shows that, when sourcing business services in foreign countries, the fragmentation of processes across production units acts as an operational-level adjustment variable for firms to adapt their information protection approach to the regulative environment of the host country they have selected and to the possibility to use internal controls over the activities performed abroad. We hypothesize that, when the above mechanisms are not available, firms are more likely to fragment process...
The Frascati Manual is firmly based on experience gained from collecting R&D statistics in both OECD and non-member countries. It is a result of the collective work of national experts in NESTI, the OECD Working Party of National Experts on Science and Technology Indicators. This group, with support from the OECD Secretariat, has worked over now more than 50 years as an effective community of practitioners to implement measurement approaches for the concepts of science, technology and innovation...
Published on Jan 1, 2016in Journal of International Business Studies 7.72
C. Annique Un13
Estimated H-index: 13
(NU: Northeastern University)
I analyze differences in the innovativeness of domestic firms and subsidiaries of foreign firms operating in the same country. I argue that domestic firms suffer a liability of localness in innovation, or a competitive disadvantage in product innovation relative to subsidiaries of foreign firms. I propose that this liability of localness is driven by the relatively lower levels of multiculturalism in employees of domestic firms in comparison with subsidiaries, which limit the identification, tra...
Published on Jun 1, 2015in Journal of International Management 2.83
Elisabeth Baier7
Estimated H-index: 7
(PTV Planung Transport Verkehr),
Christian Rammer21
Estimated H-index: 21
,
Torben Schubert14
Estimated H-index: 14
(Lund University)
We analyze the effects of captive offshoring of innovation activities on the firms' ability to adapt their organizational structures. Basing our arguments on the complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We find an inverted u-shape of innovation offshoring on the effectiveness of organizational adaptability, implying an optimal threshold value of innovation offshoring. This value is 11% for the share of off sho...
Published on Apr 20, 2015in The Multinational Business Review
Klaus E. Meyer41
Estimated H-index: 41
(China Europe International Business School)
Purpose – The purpose of this paper is to shed more light on the concept of “strategic asset-seeking FDI”, which is frequently used in discussion of emerging economy multinational enterprises (MNEs), but it is challenged by some scholars. The author argues that he needs this category because an important type of foreign direct investment (FDI) is not captured by the other motives identified by John Dunning, namely, market-, efficiency- and natural-resource-seeking FDI. Design/methodology/approac...
Published on Apr 20, 2015in The Multinational Business Review
Alvaro Cuervo-Cazurra32
Estimated H-index: 32
(NU: Northeastern University),
Rajneesh Narula37
Estimated H-index: 37
(University of Reading)
Purpose – The purpose of this paper is to introduce the debate forum on internationalization motives of this special issue of Multinational Business Review. Design/methodology/approach – The authors reflect on the background and evolution of the internationalization motives over the past few decades, and then provide suggestions for how to use the motives for future analyses. The authors also reflect on the contributions to the debate of the accompanying articles of the forum. Findings – There c...
Published on Apr 20, 2015in The Multinational Business Review
Alvaro Cuervo-Cazurra32
Estimated H-index: 32
(NU: Northeastern University),
Rajneesh Narula37
Estimated H-index: 37
(University of Reading),
C. Annique Un13
Estimated H-index: 13
(NU: Northeastern University)
Purpose – The purpose of this the paper is to review the motives for internationalization to clarify previous arguments and provide a theory-driven classification. Design/methodology/approach – The authors build on behavioral economics and propose a classification of internationalization motives as the result of the interaction among two dimensions, an economics-driven exploitation of existing resources or exploration of new resources, and a psychology-driven search for better host country condi...
Published on Mar 1, 2015
Davide Castellani21
Estimated H-index: 21
(University of Perugia),
Maria Luisa Mancusi11
Estimated H-index: 11
(CUA: The Catholic University of America)
+ 1 AuthorsAntonello Zanfei20
Estimated H-index: 20
(University of Urbino)
A. Zanfei (&) Department of Economics, Society and Politics, University of Urbino, Via Saffi 42, 61029 Urbino, Italy e-mail: antonello.zanfei@uniurb.it 1 Resorting to foreign unaffiliated companies is often dubbed as offshore outsourcing, including pure supply relationships as well as more comprehensive partnership subcontracting. Offshoring within the boundaries of multinational enterprises (MNEs) is also referred to as offshore in-house sourcing (OECD 2006) or captive offshoring (Kedia and Muk...
Published on Jul 1, 2014in Journal of World Business 5.79
Francisco Figueira-de-Lemos2
Estimated H-index: 2
(Uppsala University),
Amjad Hadjikhani14
Estimated H-index: 14
(Uppsala University)
This article proposes a managerial decision framework to deal with internationalization whether in stable or dynamic environments. While displaying the effects of unstable and stable environmental settings on commitment decisions, the framework is the result of an inferential abductive approach that merges the risk management model with empirical data collected from a 32-year longitudinal case study on nine Swedish MNCs. The longitudinal analysis shows that when environmental changes are perceiv...
Published on Dec 1, 2013in Journal of International Management 2.83
Federica Ceci7
Estimated H-index: 7
,
Andrea Prencipe25
Estimated H-index: 25
(Libera Università Internazionale degli Studi Sociali Guido Carli)
We submit that offshoring research focused mostly about an empirical phenomenon and extending our understanding about it, rather than expanding our understanding of the underlying theory as illuminated by empirical evidence. To theoretically frame the implications of offshoring strategy and practice for organizational design, this paper centers on the interplay between coordination and geographical distance. Distance strains the traditional approaches to coordination – i.e. decomposability and c...
Cited By4
Newest
Published on Nov 1, 2019in Journal of World Business 5.79
Ulf Andersson (MDH: Mälardalen University College), Chris Brewster51
Estimated H-index: 51
(MDH: Mälardalen University College)
+ 2 AuthorsGeoffrey Wood27
Estimated H-index: 27
(MDH: Mälardalen University College)
Abstract Although the core concepts underlying IB and IHRM provide a common lexicon and epistemology, this commonality is often more implicit than explicit. We highlight not only the common ground but also the lack of critical dialogue between the two fields. This paper asks: What can each field learn from the other? What do scholars from IB learn from IHRM and vice versa? We identify a possible agenda and concerns regarding theory building as a basis for dialogue between the two fields.
Marina Papanastassiou16
Estimated H-index: 16
(Middlesex University),
Robert Pearce23
Estimated H-index: 23
(University of Reading),
Antonello Zanfei20
Estimated H-index: 20
(University of Urbino)
Internationalization of R&D and innovation by multinational enterprises (MNEs) has undergone a gradual and comprehensive change in perspective over the past 50 years. From sporadic works in the late 1950s and in the 1960s, it became a systematically analyzed topic in the 1970s, starting with pioneering reports and “foundation texts”. Our review unfolds the theoretical and empirical evolution of the literature from dyadic interpretations of centralization versus decentralization of R&D by MNEs to...
Published on Apr 16, 2019in Journal of International Business Studies 7.72
Stefano Elia9
Estimated H-index: 9
(Polytechnic University of Milan),
Marcus Møller Larsen9
Estimated H-index: 9
(CBS: Copenhagen Business School)
+ 0 AuthorsLucia Piscitello17
Estimated H-index: 17
(Polytechnic University of Milan)
We explore when and why decision makers choose international entry modes (e.g., hierarchies or markets) that deviate from internalization theory’s predictions. By applying a cognitive perspective on entry mode decision making, we propose that the performance of prior international activities influences decision makers’ behavior in different ways than assumed in internalization theory. More specifically, due to a representativeness bias, underperforming (overperforming) past ventures influence th...
Published on Feb 1, 2019in Research Policy 5.42
Markus Grillitsch13
Estimated H-index: 13
(Lund University),
Torben Schubert14
Estimated H-index: 14
(Fraunhofer Society),
Martin Srholec17
Estimated H-index: 17
(Charles University in Prague)
The link between knowledge and firm growth has been a core topic in economics of innovation for a long time. However, despite strong theoretical arguments, empirical evidence remains inconclusive. One important reason for this conundrum may be the failure of standard indicators to capture firm innovation activities comprehensively. We contribute to overcoming this limitation by looking in the knowledge processes that drive variegated forms of innovation and aim thereby to establish a solid relat...
Published on Feb 1, 2019in Journal of International Business Studies 7.72
Rebecca A. Fischer38
Estimated H-index: 38
(Victoria University of Wellington),
Maria Cristina Ferreira17
Estimated H-index: 17
+ 11 AuthorsMa Socorro D. Mendoza1
Estimated H-index: 1
(RU: Rutgers University)
Prosocial work behaviors in a globalized environment do not operate in a cultural vacuum. We assess to what extent voice and helping organizational citizenship behaviors (OCBs) vary across cultures, depending on employees’ perceived level of organizational formalization and national uncertainty. We predict that in contexts of uncertainty, cognitive resources are engaged in coping with this uncertainty. Organizational formalization can provide structure that frees up cognitive resources to engage...
Published on Jan 1, 2018
Torben Schubert14
Estimated H-index: 14
,
Peter Neuhäusler8
Estimated H-index: 8
We analyze the stagnating productivity levels observable across many Western economies during the last two decades. Relying on techniques to measure total factor productivities (TFP), we provide evidence for a set of 11 OECD countries observed over the period from 1993-2011 that TFP-levels exhibited growth rates of about 0.9% per year until 2000. In the period after 2000, the TFP levels almost stagnated with average annual growth rates declining to about 0.3%. The stagnating trends hold almost u...