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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 Studies7.72
· 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
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)
References123
Newest
#1Markus Grillitsch (Lund University)H-Index: 13
#2Roman Martin (Lund University)H-Index: 7
Last.Martin Srholec (Lund University)H-Index: 17
view all 3 authors...
#1Elkin Olaguer Pérez Sánchez (Grupo México)H-Index: 1
#2Iván Darío Toro Jaramillo (UPB: Pontifical Bolivarian University)H-Index: 2
Last.Blanca Yenny Hernandez Sánchez (Grupo México)H-Index: 1
view all 0 authors...
#1Alvaro Cuervo-Cazurra (NU: Northeastern University)H-Index: 32
#2Rajneesh Narula (University of Reading)H-Index: 37
Last.C. Annique Un (NU: Northeastern University)H-Index: 13
view all 3 authors...
Cited By4
Newest
#1Ulf Andersson (MDH: Mälardalen University College)
#2Chris Brewster (MDH: Mälardalen University College)H-Index: 52
Last.Geoffrey Wood (MDH: Mälardalen University College)H-Index: 27
view all 5 authors...
#1Bin Hao (ECUST: East China University of Science and Technology)H-Index: 3
#2Jiangfeng Ye (Anda: Anhui University)
Last.Ziming Cai (University of Nottingham)
view all 0 authors...
#1Stefano Elia (Polytechnic University of Milan)H-Index: 9
#2Marcus Møller Larsen (CBS: Copenhagen Business School)H-Index: 9
Last.Lucia Piscitello (Polytechnic University of Milan)H-Index: 17
view all 3 authors...
#1Markus Grillitsch (Lund University)H-Index: 13
#2Torben Schubert (Fraunhofer Society)H-Index: 14
Last.Martin Srholec (Charles University in Prague)H-Index: 17
view all 3 authors...
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