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Emerging-market firms’ dynamic capabilities and international performance: The moderating role of institutional development and distance

Ismail Gölgeci, Shahin Assadinia, Olli Kuivalainen and Jorma Larimo

International Business Review, 2019, vol. 28, issue 6, -

Abstract: While extant research has examined the separate influences of dynamic capabilities and institutions on international performance, their interactive role has received limited attention. Therefore, we examine the role of host-country institutional conditions in the relationships between emerging-market firms’ (EMFs) innovation-related dynamic capabilities and their international performance. We use multi-source secondary data and primary data from multiple informants from 254 Turkish international firms to test our framework. The study finds that the linkages between three innovation-related dynamic capabilities (innovativeness, supply-chain agility, and adaptability) and international performance are positively and negatively moderated by institutional development and institutional distance, but that their influences are opposite. These influences demonstrate that host-country institutional conditions shape the link between dynamic capabilities and EMFs’ international performance in a multifaceted and paradoxical fashion.

Keywords: Dynamic capabilities; Institutional development; Institutional distance; International performance; Emerging-market firms (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.ibusrev.2019.101593

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