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Dynamic capabilities as a mediator linking international diversification and innovation performance of firms in an emerging economy

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  • Wu, Hang
  • Chen, Jin
  • Jiao, Hao

Abstract

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.

Suggested Citation

  • Wu, Hang & Chen, Jin & Jiao, Hao, 2016. "Dynamic capabilities as a mediator linking international diversification and innovation performance of firms in an emerging economy," Journal of Business Research, Elsevier, vol. 69(8), pages 2678-2686.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2678-2686
    DOI: 10.1016/j.jbusres.2015.11.003
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