This study focuses on the relevance of different types of innovation for firms' export performance. Despite ample research on the innovation-performance relationship, previous studies have mainly focused on technological innovations, leaving the effects of organizational innovations relatively unexplored. Hypotheses on the relationship between organizational and technological innovations and firm export performance are tested by structural equation modelling using data from 218 Swedish export ventures. The results indicate that organizational innovation enhances export performance both directly and indirectly by sustaining technological innovation. Moreover, by fine-graining our analysis of the mediating role of technological innovation, according to its radicalness and extensiveness, for organizational innovation, we show how the latter enhances both the radicalness and extensiveness of technological innovation although, notably, only extensiveness is actually beneficial for export performance. This study helps alleviate the scarcity of research examining the links among different types of innovation in relation to export performance and contributes to international business and marketing literature by generating new evidence regarding the mechanisms through which organizational and technological innovations may improve export performance.
This study examines the extent to which MNEs from developed (DMNEs) and emerging (EMNEs) economies differ in Location behaviour. Studies on MNE location choices have failed to capture the changing FDI landscape and leave the inconsistent findings unexplained.We address this gap by systematically reviewing the extant literature on location choices of DMNEs and EMNEs over the past 36 years -from the introduction of the OLI model to 2016. Key themes emerging from the review reflect a comprehensive picture, capturing the impact of multiple factors affecting location choices of DMNEs and EMNEs. Future research is challenged by: a. adopting an integrated approach examining three levels -individual (managerial), firm (ownership structure, type of FDI, internationalisation stages, and the different nature of ownership advantage), and context of location decisions (home, host, subnational, regional, supranational, and networking); b. refining or developing theories to capture the dynamic picture of MNE internationalisation.
Purpose
This paper aims to examine the relationship between cultural distance (both perceived and objective), innovation and firm export performance.
Design/methodology/approach
Hypotheses were tested here by structural equation modeling using data from 186 export ventures into 23 international markets by Swedish companies.
Findings
The results indicate that managers’ perceptions of substantial cultural differences as well as objective cultural differences (gauged using Hofstede’s (1980, 2001) scores for dimensions of national culture) and subsequent environmental uncertainty when expanding into culturally distant markets triggers strategies for interacting and integrating with the market environment. These include producing and adopting innovations to processes and products and to organizational strategy, structure and administrative procedures to cope with the new environment and overcome uncertainties. These innovations and the associated competitive advantages improve firm export performance.
Originality/value
Despite much research into the relationship between firm internationalization and innovation, little attention has been paid to the effect of the characteristics of the foreign markets (specifically cultural differences) on firm innovation strategies. Moreover, much research has been devoted to the effect of innovation on firm export performance, but such research has mainly focused on one type of innovation, i.e. technological innovation, while the influence of organizational innovation on firm export performance has been basically ignored. The present study validates the explanatory of cultural distance (both perceived and objective) in relation to innovation strategies (technological and organizational) and export performance.
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