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Foreign Market Knowledge, Country Sales Breadth And Innovative Performance Of Emerging Economy Firms

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  • CHRISTOPHER WILLIAMS

    (Durham University Business School, Mill Hill Lane, Durham, DH1 3LB, United Kingdom)

  • ANA COLOVIC

    (Strategy and Entrepreneurship Department, NEOMA Business School, 1 rue du Maréchal Juin, 76130 Mont Saint Aignan, France)

  • JIQING ZHU

    (College of International Business, Shanghai International Studies University, 550 Dalian West Road Shanghai, 200083, China)

Abstract

We examine the impact of foreign market knowledge on innovative performance in emerging economy firms. We also study how this relationship is moderated by country sales breadth, i.e., the diversity of countries in which the firm derives sales. We test two competing theoretical perspectives on this relationship: diversity logic suggesting country sales breadth is beneficial to innovative performance, and time compression diseconomies logic suggesting the opposite. Drawing from a sample of 92 Chinese firms, we show that foreign market knowledge has a positive impact on innovative performance, and that this relationship is positively moderated by country sales breadth. Our study suggests that managers in Chinese firms develop effective capabilities in accessing, integrating and utilising foreign market knowledge from a breadth of international sources in their quest for innovation.

Suggested Citation

  • Christopher Williams & Ana Colovic & Jiqing Zhu, 2016. "Foreign Market Knowledge, Country Sales Breadth And Innovative Performance Of Emerging Economy Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-25, August.
    • Handle: RePEc:wsi:ijimxx:v:20:y:2016:i:06:n:s1363919616500596
    DOI: 10.1142/S1363919616500596
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