Adapting innovation capabilities in emerging economies
The role of learning and cultural and institutional distance in MNC subsidiaries in Korea
Bibliographic Data
| ID | 6141335 |
|---|---|
| Authors | Chulhyung Park (0009-0009-4870-3139, Chungnam National University), Kyuho Jin (0000-0002-8805-3267, Gwangju Institute of Science and Technology) |
| Year | 2024 |
| Volume | 32 |
| Issue | 1 |
| Pages | 262-288 |
| Publication date | 2024-04-03 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Cross Cultural & Strategic Management (JOURNAL) |
| Journal identifiers | ISSN: 2059-5794 • E-ISSN: 2059-5808 |
| Publisher | Emerald Publishing Limited (PUBLISHER • GB) |
| DOI | 10.1108/ccsm-09-2023-0200 |
| OpenAlex | W4393945455 |
| Language | EN |
| References cited | 102 |
Purpose The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs). However, it is less certain that their innovative capabilities imported from the home country function effectively in the host country from the outset. This study examines the performance of the innovation capabilities of MNC subsidiaries in emerging economies over time by considering the gradual process of their learning about host countries. Design/methodology/approach We employed stochastic frontier analysis to measure innovation capabilities, our focal construct. For regression analysis, we applied the Mundlak estimator, a variant of the fixed-effects panel estimator, to a sample comprising subsidiaries of MNCs from technologically advanced nations operating in Korea between 2006 and 2016. Findings Our results indicate that the innovation capabilities of MNC subsidiaries initially underperform those of local firms but improve over time, eventually surpassing the capabilities of their local counterparts. Furthermore, our findings reveal that institutional distance amplifies the underperformance of the innovation capabilities of MNC subsidiaries. Originality/value This study contributes to the literature by extending both theoretical development and empirical measurement of innovation capabilities in cross-national settings. Additionally, it deepens our understanding of whether and how MNC subsidiaries adapt their innovation capabilities to the local market environment
Business · Economic geography · Economic system · Economics · Emerging markets · Industrial organization · Multinational corporation · Subsidiary · Family Business Performance and Succession · Innovation and Knowledge Management · International Business and FDI · Finance
Organizational Routines and Performance Feedback
Organizational Routines and Organizational Learning
National System of Industrial Innovation
National Innovation Systems
Globalization of Innovation
The Future of the Multinational Enterprise
Strategic assets and organizational rent
Dynamic capabilities
Organizational Learning
The Essential Impact of Context on Organizational Behavior
Doing More with Less
The Relational View
Toward a synthesis of the resource‐based and dynamic‐capability views of rent creation
Subsidiary‐specific advantages in multinational enterprises
Culture and Organizations
The Search for R&D Spillovers
Culture and entrepreneurial potential
Exploring internal stickiness
Fixed and Random Effects in Stochastic Frontier Models
A Behavioral Theory of R&d Expenditures and Innovations
The eclectic paradigm as an envelope for economic and business theories of MNE activity
On the Pooling of Time Series and Cross Section Data
Formulation and estimation of stochastic frontier production function models
Structural Equations with Latent Variables
Institutions, Institutional Change and Economic Performance
The Cultural Relativity of Organizational Practices and Theories
Organizational Learning
Handbook of Organizational Routines
Cultural Diversity, Innovation, and Entrepreneurship
The Theory of the Firm as Governance Structure
| Citation velocity | historical |
|---|---|
| Highly cited | No |