Product innovation capability, export scope and export experience: Quadratic and moderating effects in firms from developing countries
Abstract
Purpose
By applying the logic of the resource-based view and process-based internationalisation theory, this study aims to provide a better understanding of the effects of product innovation capability on the export scope of firms based in developing countries and the role of export experience as a facilitating mechanism.
Design/methodology/approach
Using survey data obtained from three developing countries, two main research hypotheses were empirically tested: a quadratic relationship exists between product innovation capability and export scope and export experience has a moderating effect in this relationship.
Findings
Product innovation capability and export scope have a U-shaped relationship, and export experience exerts a moderating effect. The greater the export experience is, the more the relationship between product innovation and export scope changes, taking on a more inverted U-shaped form.
Practical implications
Firms based in developing countries need to catch-up on innovation capabilities before being able to succeed in international markets. Managers must be aware that initial investments in product innovation could not pay off immediately and that significant additional efforts might be needed to obtain noteworthy results in terms of international expansion.
Originality/value
This study is among the first to focus on the curvilinear relationship between product innovation capability and export scope for firms based in developing countries while accounting for the moderating role of firms’ export experience.
Keywords
Citation
Arslanagic-Kalajdzic, M., Balboni, B., Kadic-Maglajlic, S. and Bortoluzzi, G. (2017), "Product innovation capability, export scope and export experience: Quadratic and moderating effects in firms from developing countries", European Business Review, Vol. 29 No. 6, pp. 680-696. https://doi.org/10.1108/EBR-12-2015-0180
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited