Does internationalization strategy promote enterprise innovation performance?—The moderating effect of environmental complexity

Abstract

This study aims to investigate the relationships between two types of internationalization degree and innovation performance in the context of enterprises and the moderating role of environmental complexity in such relationships. The results show that internationalization depth is positively related to innovation performance and environmental complexity negatively moderates the relationship between internationalization depth and innovation performance. Moreover, internationalization breadth and innovation performance have a positive relationship, but environmental complexity does not have a significant effect on the relationship between internationalization breadth and innovation performance. This study highlights the positive role of internationalization degree in innovation performance and advances the understanding of environmental complexity by proposing that the effects of environmental complexity on such relationships are contingent on process of firms' internationalization.

Exploring the mesomeric effect of executive equity incentives on enterprise innovation: a study in the context of digital transformation

“…Specifically, national tax incentives (Yi et al, 2020), financial subsidies (Cheng et al, 2023) and industrial subsidies (Wang and Zhu, 2021) have all been found to play a positive role in spurring enterprise innovation. Moreover, Xiao and Sun (2021) observed a positive correlation between the degree of an enterprise's internationalization and its innovation performance. In terms of corporate governance, Zhao and Yuan (2021) posited that different attributes of the senior management team exert varied impacts on the efficiency of corporate R&D investment and the resulting innovation output; Fang et al (2022) posited that a wider internal salary disparity can boost both the innovation input and output of enterprises.…”

The impact of degree of internationalization of MNEs on green innovation performance: The moderating role of absorptive capacity and global dynamic management capability

“…The second option is to expand to as many foreign markets as possible, increasing the scope of internationalization (Kafouros et al, 2012). However, existing studies have mainly focused on the impacts of internationalization as an overall strategy (Xiao & Sun, 2022), neglecting the effects of its dimensions (e.g., the breadth and depth of internationalization) and little is known about their impacts on green innovation performance of MNEs. To address this research gap, this study aims to examine the role of both the depth and breadth of internationalization in determining the green innovation performance of MNEs.…”

“…In regards to internationalization breadth, we believe that internationalization breadth has a positive impact on green innovation performance for the following reasons. First, by increasing the internationalization breadth, MNEs will be able to further understand and obtain various resources from multiple overseas markets and improve the heterogeneity of resources owned by the MNEs (Kafouros et al, 2018; Xiao & Sun, 2022), which provides a resource base for green innovation activities (Carlsson, 2006). Therefore, the green innovation level and green innovation performance of enterprises can be improved through effective allocation and utilization of heterogeneous resources in multiple overseas markets.…”

“…Moreover, many studies regard internationalization as an overall strategy and ignore the dimensions of internationalization (Prange & Verdier, 2011; Xiao & Sun, 2022). Indeed, internationalization can be classified into two dimensions: depth and breadth (Aggarwal et al, 2011).…”