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Innovation and internationalization on the competitiveness of exporting firms

Innovation and internationalization on the competitiveness of exporting firms The purpose of this paper is to build a new theoretical model from the interaction between two theoretical approaches. This model can explain the development of organizational innovations from a specific type of knowledge that the firm generate when they face internationalization process. Also, the model shows the effects of the innovations on the performance and competitiveness of the firm.Design/methodology/approachBased on the literature review, this study connects empirical evidence in two aspects. First, the development of institutional knowledge from experiential learning of the firm in foreign markets. Second, the influence of organizational innovations on the market performance in exporting firms from South American emerging economies.FindingsThe main finding of this study is that the connection between two theoretical perspectives, internationalization process and innovation, it is possible by the international entrepreneurship (IE) field, because IE establishes that the opportunities are in international borders and the firms exploit these opportunities when they build new experiential knowledge associated with institutional conditions in foreign markets. And then, the firms are able to create product innovations and services innovations from this knowledge.Originality/valueThis study shows the theoretical base for explaining that in South American emerging economies the exporting firms can build their competitive advantages based on innovations that arise when they do business in foreign markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

Innovation and internationalization on the competitiveness of exporting firms

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References (80)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1012-8255
DOI
10.1108/arla-12-2016-0336
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to build a new theoretical model from the interaction between two theoretical approaches. This model can explain the development of organizational innovations from a specific type of knowledge that the firm generate when they face internationalization process. Also, the model shows the effects of the innovations on the performance and competitiveness of the firm.Design/methodology/approachBased on the literature review, this study connects empirical evidence in two aspects. First, the development of institutional knowledge from experiential learning of the firm in foreign markets. Second, the influence of organizational innovations on the market performance in exporting firms from South American emerging economies.FindingsThe main finding of this study is that the connection between two theoretical perspectives, internationalization process and innovation, it is possible by the international entrepreneurship (IE) field, because IE establishes that the opportunities are in international borders and the firms exploit these opportunities when they build new experiential knowledge associated with institutional conditions in foreign markets. And then, the firms are able to create product innovations and services innovations from this knowledge.Originality/valueThis study shows the theoretical base for explaining that in South American emerging economies the exporting firms can build their competitive advantages based on innovations that arise when they do business in foreign markets.

Journal

Academia Revista Latinoamericana de AdministraciónEmerald Publishing

Published: Dec 3, 2018

Keywords: Innovation; Internationalization process; South America; International entrepreneurship; Institutional knowledge; Innovación; Proceso de internationacionalización; América del Sur; Emprendimiento Internacional; Conocimiento Institucional

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