Local and international knowledge search and product innovation: The moderating role of technology boundary spanning

Wu, Jie; Wu, Zefu

doi:10.1016/j.ibusrev.2013.09.002

Cited by 51 publications

(48 citation statements)

References 64 publications

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“…When EMMCs expand to foreign markets with unique institutional requirements, they face a high degree of international institutional complexity that offers the opportunity to secure new capabilities, such as advanced technologies, patents, research and development, brainpower, etc. (Wu & Wu, ). Organizations are often constrained by core rigidities and competency traps in exploiting their existing competencies, which leads to local searches for solutions and improvement (Rosenkopf & Nerkar, ; Zahra, Ireland, & Hitt, ).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…International institutional complexity helps EMMCs access different market information and novel technologies to address complex market demands and improve innovation capabilities (Wu & Wu, ). For example, Huawei, besides spending 10% of its annual revenue on research, has 48% of its employees in research and development (R&D) and 16 research centers in different countries.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

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The role of international institutional complexity on emerging market multinational companies’ innovation

Park

2017

Global Strategy Journal

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Research Summary This study examines the role of international institutional complexity, which is defined as the scope and multiplicity of institutional dimensions across foreign markets, on emerging market multinational companies’ (EMMCs) innovation performance. We propose that international institutional complexity provides learning opportunities for EMMCs’ innovation performance but also incurs higher management costs to handle information overload from overextended internationalization. We further propose that the host exposure and the heterogeneity of an EMMC's top management team (TMT) moderate the main effect of international institutional complexity on EMMC innovation. The empirical testing utilizes a longitudinal panel dataset of 7,072 foreign expansion steps by 767 Chinese firms from 2001 and 2010 and offers strong support for the proposed hypotheses. Managerial Summary Despite the emergence of EMMCs over the past 30 years, there is little understanding of how international institutional complexity impacts EMMCs’ innovation capabilities. By analyzing a longitudinal panel dataset of 7,072 foreign expansion steps by 767 Chinese firms from 2001 and 2010, we find that the international institutional complexity of an EMMC has an inverted U‐shaped impact (first increasing and then decreasing) on its innovation, such that a moderate level of international institutional complexity generates the most innovation output. We also find that TMT host exposure and TMT heterogeneity positively moderate the relationship between international institutional complexity and EMMCs’ innovation performance. Our study contributes to better understanding EMMCs’ international strategies in enhancing their innovation capabilities.

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

The role of international institutional complexity on emerging market multinational companies’ innovation

Park

2017

Global Strategy Journal

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“…On this basis, we interpret there to be no diversity in the collaboration of one region, and that another four regions represent greater diversity in this respect. This variable has already been tested by previous studies on innovation (Santamaría et al, 2016;Wu & Wu, 2014;Srholec, 2015). Figure 2 shows the model we test in this study -which focuses on the impact of the breadth of cooperation relationships, their depth, and the geographical diversity of the partners -has an influence on the development of environmental improvements in the agri-food sector.…”

Section: Technology Centersmentioning

confidence: 91%

The Pursuit of External Knowledge in Eco-Innovation. Analysis of the Agri-Food Sector in Spain

Rivera¹,

Moreno²,

Martínez³

2018

JOB

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The research about the search for opportunities through open cooperation strategies points to an exchange of knowledge among a certain number of sources, aimed at sustaining competitive advantage. From this new vision emerges the paradigm of open innovation, which has prompted a change in the organization of resources, information filtering, and rapid absorptive capacity. Awareness of climate problems and external societal pressures can motivate companies to create new technologies and new forms of cooperation to avoid environmental problems. Based on a survey of Spanish agri-food firms, we find that the depth of external sources of innovation increases environmental improvement in a U-shaped relationship.

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“…Kafouros and Forsans [9] argue that firms can get lots of novel knowledge from foreign markets which can greatly enhance innovation. On the other hand, after entering into fireign markets, firms face tight competitive pressure from foreign counterparts and diverse demands from foreign customers, which compels firms to increase R&D intensity and try their best to innovate to meet customes needs [10] [11]. Therefore, we can conclude that international knowledge search provide firms with a lot of complementary resources and learning opportunity, and competitive pressure which help and compel firms to innovate.…”

Section: International Knowledge Search and Innovation Performancementioning

confidence: 99%

“…Then if domestic firms want to identify and integrate international knowledge, they have to search in high intensity, devoting enough energy and time to process it. Therefore, we can see international knowledge search compels firms to devote enough search intensity to the process because high search intensity can help firms offset the information-processing limitations [10] [11]. However, if firms do not search in high intensity in foreign markets, firms may not interpret novel information generated.…”

Section: The Moderating Effect Of Search Intensity On the Relationshimentioning

confidence: 99%

The Impact of International Knowledge Search on Innovation Performance: Moderated by Search Intensity

Wu¹

2014

Advances in Social Science, Education and Humanities Research

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In the era of knowledge economy, firms need to search outside to obtain strategic and complementary resources to innovate. However, existing research on open innovation mainly focuses on local knowledge search and ignores to answer the question that how firms search outside firm boundary. Based on the attention theory, we divide external knowledge search process into two parts, namely search selection and search intensity. This paper examines how international knowledge search and search intensity help enhance innovation performance in China's emerging economy. The result shows that international knowledge search and search intensity both are positively related to innovation performance, and search intensity positively moderates the relationship between international knowledge search and innovation performance. Theoretical and managerial implications are discussed.

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Local and international knowledge search and product innovation: The moderating role of technology boundary spanning

Cited by 51 publications

References 64 publications

The role of international institutional complexity on emerging market multinational companies’ innovation

The role of international institutional complexity on emerging market multinational companies’ innovation

The Pursuit of External Knowledge in Eco-Innovation. Analysis of the Agri-Food Sector in Spain

The Impact of International Knowledge Search on Innovation Performance: Moderated by Search Intensity

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