Dynamic capabilities as a mediator linking international diversification and innovation performance of firms in an emerging economy

Hang Wu, Jin Chen and Hao Jiao

Journal of Business Research, 2016, vol. 69, issue 8, 2678-2686

Abstract: International diversification has become a vital innovation strategy for firms in emerging economies. This study investigates an under-researched topic: the relationships between international diversification, capabilities and innovation performance among firms in an emerging economy. We offer a dynamic capabilities explanation for the relationship between international diversification and firms' innovation performance. By employing a large sample of Chinese manufacturing firms, our investigation demonstrates that while international diversification is important in the innovation effort, its effect on innovation performance is mediated through each firm's opportunity-recognizing capability and opportunity-capitalizing capability. The implications of these findings for theoretical development and future research are discussed.

Keywords: International diversification; Dynamic capabilities; Innovation performance; Opportunity-recognizing capability; Opportunity-capitalizing capability; Emerging economies (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:8:p:2678-2686

DOI: 10.1016/j.jbusres.2015.11.003

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