Journal
JOURNAL OF BUSINESS RESEARCH
Volume 69, Issue 8, Pages 2678-2686Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jbusres.2015.11.003
Keywords
International diversification; Dynamic capabilities; Innovation performance; Opportunity-recognizing capability; Opportunity-capitalizing capability; Emerging economies
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Funding
- National Natural Science Foundation of China [71502064, 71272171, 71572017, 71502065]
- Major Bidding Project of Philosophy and Social Sciences Research, Ministry of Education, China (Indigenous Innovation in Open Conditions)
- Beijing Normal University, Beijing, China
- Fundamental Research Funds for the Central Universities
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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. (C) 2015 Elsevier Inc. All rights reserved.
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