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National business systems and firm innovation: A study of developing economies

Author

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  • Pezeshkan, Amir
  • Smith, Adam
  • Fainshmidt, Stav
  • Amini Sedeh, Amirmahmood

Abstract

While prior research recognizes the significant impact of innovation on the economic development of developing and emerging economies, the systemic role of national institutions in fostering firm innovation remains unclear. This study addresses this issue by introducing an institutional framework of national business systems shaping firm innovation within a country, and conducts a configurational analysis of 47 developing and emerging economies to uncover how state, human capital, financial, and informal institutions combine to influence firm innovation. The analysis identifies three distinct institutional configurations associated with high firm innovation. This study highlights the usefulness of a configurational approach to better understand how complementary and substitutable institutions may facilitate firm innovation within a country. The findings offer guidance to policy makers interested in encouraging economic development through firm innovation activities and to managers seeking to establish subsidiaries in innovative developing and emerging economies.

Suggested Citation

  • Pezeshkan, Amir & Smith, Adam & Fainshmidt, Stav & Amini Sedeh, Amirmahmood, 2016. "National business systems and firm innovation: A study of developing economies," Journal of Business Research, Elsevier, vol. 69(11), pages 5413-5418.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:11:p:5413-5418
    DOI: 10.1016/j.jbusres.2016.04.147
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    References listed on IDEAS

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    2. Pattravadee Ploykitikoon & Charles M. Weber, 2019. "Knowledge Pathways and Performance: An Empirical Study of the National Laboratories in a Technology Latecomer Country," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-37, May.
    3. Amir Pezeshkan & Adam Smith & Stav Fainshmidt & Anil Nair, 2022. "A neo-configurational institutional analysis of international venture capital attractiveness and performance: insights for Asia-Pacific," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 365-393, June.
    4. Ritter-Hayashi, D. & Knoben, Joris & Vermeulen, P.A.M., 2018. "Success Belongs to the Flexible Firm : How Labor Flexibility Can Retain Firm Innovativeness in Times of Downsizing," Other publications TiSEM 749e1bae-6946-40cb-a5fc-e, Tilburg University, School of Economics and Management.
    5. Ibrahim Alnafrah & Sulaiman Mouselli, 2020. "The Role of National Innovation Systems in Entrepreneurship Activities at Baltic State Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 84-102, March.
    6. Amirmahmood Amini Sedeh & Rosa Caiazza, 2024. "Does entrepreneurship hold the key? Steering through income inequality towards happiness," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4424-4440, July.
    7. Aleem Ahmad Qader & Jingwei Zhang & Sheikh Farhan Ashraf & Nausheen Syed & Khaoula Omhand & Mehrab Nazir, 2022. "Capabilities and Opportunities: Linking Knowledge Management Practices of Textile-Based SMEs on Sustainable Entrepreneurship and Organizational Performance in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    8. Sidney Mangenda Tshiaba & Nianxin Wang & Sheikh Farhan Ashraf & Mehrab Nazir & Nausheen Syed, 2021. "Measuring the Sustainable Entrepreneurial Performance of Textile-Based Small–Medium Enterprises: A Mediation–Moderation Model," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    9. Amirmahmood Amini Sedeh & Amir Pezeshkan & Rosa Caiazza, 2022. "Innovative entrepreneurship in emerging and developing economies: the effects of entrepreneurial competencies and institutional voids," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1198-1223, August.

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