Open Access Open Access  Restricted Access Subscription Access

Innovation and Internationalization: Relationship and Implications for Management and Public Policy


Affiliations
1 Graduate School of Management, Saint Petersburg University, Volkhovsky per., 3, 199004, Saint Petersburg, Russian Federation
 

Innovation and internationalization are two basic growth strategies which contend for both the firms' and governments resources. At the same time, they are linked by a two-way relationship that has been widely documented in previous studies. However, often preceding literature is disconnected and does not integrate innovation and export promotion studies into the analysis. In this article we review and synthesize the different approaches regarding these relationships, while considering also the research on the impact of export promotion programs. As a result, a list of recommendations is deduced both for management and public policy regarding the development of these two strategies.

Keywords

Innovation, Growth Strategy, Export Performance, Internationalization, Profitability.
User
Notifications
Font Size


  • Altomonete, C., Aquilante T., Bekes G. & Ottaviano G. (2013). Firm-level evidence on productivity differentials and turnover in Taiwanese manufacturing. Journal of Development Economics, 66 (1): 51-86.
  • Alvarez, R. (2004). Sources of export success in small- and medium enterprises: The impact of public programs. International Business Review, 13, 383-400.
  • Amaral, P., Freixanet J., Marques P. (2014). Entrepreneurship orientation in service SMEs: key resource for internationalization. Paper presented in the INBAM Conference, Barcelona (Spain).
  • Aw, B. Y., Roberts, M. J., & Xu, D. J. (2009). R&D investment, exporting, and productivity dynamics, NBER Working Paper 14670, National Bureau of Economic Research, Cambridge, MA.
  • Aw, B. Y., Chen, X., & Roberts, M. J. (2001). Firm-level evidence on productivity differentials and turnover in Taiwanese manufacturing. Journal of Development Economics, 66 (1): 51-86.
  • Bannò, M., Morandi, V. & Amorim V., C. (2013). Public Policy for innovation and internationalization: are they worth it? Applied Economics Letters, 20 (10): 927-930.
  • Barret, N., & Wilkinson, I. (1986). Australian management's attitudes to exporting - Past and present. Paper presented in the market research society of Australia's annual conference, Canberra.
  • Basile, R. (2001). Export behavior of Italian manufacturing firms over the nineties: The role of innovation. Research Policy, 30 (8): 1185-1201.
  • Becker, S. O., & Egger, P. (2009). Endogenous product versus process innovation and a firm's propensity to export. Empirical Economics, doi: 10.1007/s00181-009-0322-6.
  • Bernard, A., & Jensen, J. (1999). Exceptional exporter performance: Cause, effect or both? Journal of International Economics, 47 (1): 1-25.
  • Bernard, A., & Jensen, J. (2004). Why some firms export. Review of Economics and Statistics, 86 (2): 561-569.
  • Bilkey, W.J. and Tesar, G. (1977). The export behaviour of smaller sized Wisconsin manufacturing firms. Journal of International Business Studies, Spr./Summer 1977, pp. 93-8.
  • Bratti, M., Felice, G. (2012). Are Exporters More Likely to Introduce Product Innovations? The World Economy, 35 (11): 1559-1598.
  • Cassiman, B., & Martinez-Ros, E. (2007). Product innovation and exports: Evidence from Spanish manufacturing, IESE Working Paper, mimeo.
  • Cassiman, B.& Golovko, E. (2011). Innovation and internationalization through exports. Journal of International Business Studies, 42(1), 56-75.
  • Cavusgil, S. T. (1980). On the Internationalisation Process of Firms. European Research, November 1980, pp 273-81.
  • Cavusgil, S. T. (1983). Success factors in export marketing: An empirical analysis. Journal of International Marketing and Marketing Research, 8(2), 63-73.
  • Covin, J.G. & Slevin, D.P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87.
  • Czinkota, M. R., & Kotabe, M. (1992). State government promotion of manufacturing exports: A gap analysis. Journal of International Business Studies, 23(4), 637-658.
  • Czinkota, M. R. (1982b). An evaluation of the effectiveness of US export promotion efforts. In M. Czinkota & G. Tesar (Eds.), Export policy: A global assessment (pp. 63-71). New York, NY: Praegar.
  • Damijan, J., & Kostevc, C. (2006). Learning-by-exporting: Continuous productivity improvements or capacity utilization effects? Evidence from Slovenian firms. Review of World Economics, 142 (3): 599-614.
  • De Loecker, J. (2007). Do exports generate higher productivity? Evidence from Slovenia. Journal of International Economics , 73 (1): 69-98.
  • Delgado, M., Farinas, J., & Ruano, S. (2002). Firm productivity and export markets: A nonparametric approach. Journal of International Economics, 57(2): 397-422.
  • Esteve-Perez S., Rodríguez D. (2013). The dynamics of exports and R&D in SMEs. Small Bus Econ, 41: 219-240.
  • Fafchamps, M., El Hamine, S., & Zeufack, A. (2007). Learning to export: Evidence from Moroccan manufacturing. Journal of African Economies, 17 (2): 305-335.
  • Fayos, T. (2003), La Evaluacion de la Promocion Publica de la Internacionalización: Implicaciones sobre las Empresas Exporters de la Comunidad Valenciana. PhD dissertation, Universidad de Valencia.
  • Filippetti A., Frenz M., & Ietto-Gillies G. (2011). Are Innovation and Internationalization Related? An Analysis of European Countries. Industry and Innovation, 18(5), 437-459.
  • Francis, J., & Collins-Dodd, C. (2004). Impact of export promotion programs on firm competencies, strategies and performance - The case of Canadian high-tech SMEs. International Marketing Review, 4(5), 474-495.
  • Freixanet, J. (2012). Export promotion programs: Their impact on companies' inter-nationalization performance and competitiveness. International Business Review, 21(6), 1065-1086.
  • Geroski, P.A., Reenen J.V., Walters C.F. (1997). The effect of export assistance program usage on export performance. Journal of International Marketing, 9(2), 51-72.
  • Gençtürk, E. F., & Kotabe, M. (2001). The effect of export assistance program usage on export performance. Journal of International Marketing, 9(2), 51-72.
  • Greenaway, D., & Kneller, R. (2007). Firm heterogeneity, exporting and foreign direct investment. Economic Journal, 117 (517): 134-161.
  • Golovko, E., Valentini G. (2011). Exploring the complementarity between innovation and export for SMEs' growth. Journal of International Business Studies (2011) 42, 362-380.
  • Gray, B. J. (1997). Profiling managers to improve export promotion targeting. Journal of International Business Studies, Second Quarter, 387-420.
  • Halilem, N., Amara N., Landry R. (2013). Exploring the relationships between innovation and internationalization of small and medium-sized enterprises: A nonrecursive structural equation model. Canadian Journal of Administrative Sciences (2014) 31, 18-34.
  • Hobday, M. (1995a), Innovation in East Asia: The Challenge to Japan (Brookfield, VT: Edward Elgar).
  • Hopenhayn, H. (1992). Entry, exit and firm dynamics in long run equilibrium. Econometrica, 60 (5): 1127-1150.
  • Johanson, J., & Vahlne, J. (1977). The internationalization process of the firm - A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23-32.
  • Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm - Four Swedish cases. Journal of Management Studies, 12, 305
  • Kafouros, M.I., Buckley, P.J., Sharp, J.A., et al. (2008). The role of internationalization in explaining innovation performance. Technovation, 28, 63-74.
  • Khan, S. (1978). A study of Success and Failure in Exports. EIBA.
  • Kiriyama, N. (2012). Trade and innovation: synthesis report, OECD Trade Policy Papers, 135.
  • Lamotte, O., Colovic A. (2010). Innovation and Internationalization in Young Entrepreneurial Firms. International Management, 18(1): 87-103.
  • Lederman, D., Olarreaga, M., & Payton, L. (2010). Export promotion agencies: Do they work? Journal of Development Economics, 91, 257-265.
  • Lileeva, A., & Trefler, D. (2010). Improved access to foreign markets raises plant-level productivity... for some plants. Quarterly Journal of Economics, 125(3): 1051-1099.
  • Mendoza, X., Sureda, J. & Tornabell, R. (2002), Trajectòries d'internacionalit-zacio de l'empresa catalana, Catalunya Internacional, COPCA, No. 32, pp. 3-8.
  • Naidu, G. M., Cavusgil, S. T., Murthy, B. K., & Sarkar, M. (1997). An export promotion model for India: Implications for public policy. International Business Review, 6(2), 113-125.
  • Naidu, G. M.; Rao, T.R. (1993). Public sector promotion of exports: a need-based approach, Journal of Business Research, Vol. 27, pp. 85-101.
  • Pavord, W. y Bogart, R. G. (1975). The Dynamics of the Decision to Export. Akron Business and Economic Review, Spring, pp. 6-11
  • Pittiblio, R., Sica E., Villa, S. (2009). Innovation and Internationalization: The Case of Italy. Journal of Technology Transfer, 34: 588-602.
  • Prashantham, S. (2005). Toward a knowledge-based conceptualisation of internationalization. Journal of International Entrepreneurship, 3(1), 37-52.
  • PricewaterhouseCoopers (2010). Government's Many Roles in Fostering Innovation. Innovation Report. 1-63.
  • Reid, S. (1984). Information acquisition and export entry decisions in small firms. Journal of Business Research, 12(2), 141-157.
  • Reid, S. (1981). The decision-maker and export entry and expansion. Journal of International Business Studies, vol 12, pp 101-12.
  • Ríos-Morales, R., Brennan L. (2009). Ireland's innovative governmental policies promoting internationalization. Research in International Business and Finance, 23(2), 157-168.
  • Roberts, M., & Tybout, R. (1997). The decision to export in Colombia: An empirical model of entry with sunk costs. American Economic Review, 87 (4): 545-564.
  • Salomon R., & Shaver J. M. (2005). Learning-by-exporting: New insights from examining firm innovation. Journal of Economics and Management Strategy, 14(2), 431-461.
  • Seringhaus, F. H. R. (1984). Government export marketing assistance & medium-sized Ontario manufacturing firms: The role & impact of trade missions on firms off-shore market involvement. PhD dissertation. York University, Toronto.
  • Seringhaus, F. H. R., & Rosson, P. J. (1990). Government export promotion: A global perspective. London: Routledge.
  • Seringhaus, F. H. R., & Botschen, G. (1991). Cross-national comparison of export promotion services: The views of Canadian and Austrian companies. Journal of International Business Studies, 22(1), 115-134.
  • Van Biesebroeck, J. 2005. Exporting raises productivity in sub-Saharan African manufacturing firms. Journal of International Economics, 67 (2): 373-391.
  • Westphal, L. E. (2002), 'Technology Strategies for Economic Development in a Fast Changing Global Economy', Economics of Innovation and New Technology, 11, 275-320.
  • Wiedersheim-Paul, E., Olson, H y Welch, L. (1978). Pre-Export Activity: The First Step in Internationalization. Journal of International Business Studies, Spring/Summer, pp. 47-58.
  • Zia, B. H. (2008). Export incentives, financial constraints, and the (mis)allocation of credit: Micro-level evidence from subsidized export loans. Journal of Financial Economics, 87, 498-527.

Abstract Views: 221

PDF Views: 161




  • Innovation and Internationalization: Relationship and Implications for Management and Public Policy

Abstract Views: 221  |  PDF Views: 161

Authors

Joan Freixanet
Graduate School of Management, Saint Petersburg University, Volkhovsky per., 3, 199004, Saint Petersburg, Russian Federation

Abstract


Innovation and internationalization are two basic growth strategies which contend for both the firms' and governments resources. At the same time, they are linked by a two-way relationship that has been widely documented in previous studies. However, often preceding literature is disconnected and does not integrate innovation and export promotion studies into the analysis. In this article we review and synthesize the different approaches regarding these relationships, while considering also the research on the impact of export promotion programs. As a result, a list of recommendations is deduced both for management and public policy regarding the development of these two strategies.

Keywords


Innovation, Growth Strategy, Export Performance, Internationalization, Profitability.

References





DOI: https://doi.org/10.15759/ijek%2F2014%2Fv2i2%2F60796