Dynamic Innovation Capabilities and their Impact on Export Performance in Times of Economic Crisis

Abstract

Purpose -To determine the mediator role of innovative dynamic capabilities in performance in the internationalisation strategy of firms during periods of economic crisis.Theoretical framework -We base our study on the Theory of Dynamic Capabilities, as a response to the environment produced by an economic crisis. Two firm models are analysed in accordance with their internationalisation strategy: born-global and gradual internationalisation firms.Design/methodology/approach -We propose two hypotheses which are tested with a sample of 145 Spanish exporting firms. We use partial least squares structural equations modelling (PLS-SEM) and partial least squares multigroup analysis (PLS-MGA) to compare the results between born-global and gradual internationalisation firms.Findings -Firstly, innovation capability is necessary for entering new markets to lead to improvements in export performance. Secondly, there are significant differences between born-global and gradual internationalisation firms.Practical & social implications of research -The analysis makes management contributions for improving the use of skills and resources in firms in periods of profound variations of the environment, indicating for managers the importance of advancing in a process of creation and culture of dynamic capabilities.Originality/value -The study makes contributions regarding the role of innovative dynamic capability as an enhancer of international results in periods of economic crisis. It also contributes a novel form of capturing the dynamic character of innovation capability.

Innovation capabilities and export performance of SMEs: does managers' risk-taking propensity matter?

“…The findings of this study are consistent with Bhat and Momaya (2020) who revealed that employing INVC significantly determines the EXPERF of emerging market multinationals in the context of the Indian pharmaceutical industry. Also, Ledesma-Chaves and Gaitán (2022) concluded that INVCs are essential for entering new markets and they lead to EXPERF improvements in Spanish exporting firms. Similarly, Castillo et al.…”

“…The extant literature emphasizes that innovation is a key driver for firms' ability to survive in dynamic and intensely competitive environments (Bagheri et al, 2019;Castillo et al, 2022) and it creates firm-specific advantages (Oura et al, 2016). Despite the fact that a stream of literature recognizes the importance of innovation capabilities in enhancing export performance (Ledesma-Chaves and Gait an, 2022;Ortigueira-S anchez et al, 2022;Ribau et al, 2017), findings on this relationship are not conclusive (Bıçakcıo glu et al, 2020;Castillo et al, 2022). Also, empirical based-evidence on the relationship in developing economies is scarce (Ortigueira-S anchez et al, 2022).…”

“…, 2016). Despite the fact that a stream of literature recognizes the importance of innovation capabilities in enhancing export performance (Ledesma-Chaves and Gaitán, 2022; Ortigueira-Sánchez et al. , 2022; Ribau et al.…”

“…While some studies have demonstrated that innovation capabilities have a significant positive effect on export performance (Costa et al. , 2015; Fernandez-Mesa and Alegre, 2015; Ledesma-Chaves and Gaitán, 2022; Ortigueira-Sánchez et al. , 2022), others found negative effect (Boehe and Cruz, 2010; Ganotakis and Love, 2011) and others non-significant effect (Silva et al.…”

The moderation effect of country culture in the reciprocal relationship between strategic orientations and export performance: a country-level study

“…These consider export performance (Nguyen et al. , 2022; Pyper et al ., 2022; Jeong and Chung, 2022), Dynamic capabilities (Ledesma-Chaves and Arenas-Gaitán, 2022; Umrani et al ., 2022; Falahat et al ., 2021), Institutionalism (Malca et al ., 2022; Griffith and Yalcinkaya, 2022).…”