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Foreign Market Knowledge, Country Sales Breadth and Innovative Performance of Emerging Economy Firms

Williams, C.; Colovic, A.; Zhu, J.

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Authors

C. Williams

A. Colovic

J. Zhu



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.

Citation

Williams, C., Colovic, A., & Zhu, J. (2016). Foreign Market Knowledge, Country Sales Breadth and Innovative Performance of Emerging Economy Firms. International Journal of Innovation Management, 20(6), Article 1650059. https://doi.org/10.1142/s1363919616500596

Journal Article Type Article
Acceptance Date Dec 8, 2015
Online Publication Date Apr 8, 2016
Publication Date Dec 1, 2016
Deposit Date Dec 14, 2015
Publicly Available Date Apr 8, 2017
Journal International Journal of Innovation Management
Print ISSN 1363-9196
Electronic ISSN 1757-5877
Publisher World Scientific Publishing
Peer Reviewed Peer Reviewed
Volume 20
Issue 6
Article Number 1650059
DOI https://doi.org/10.1142/s1363919616500596
Public URL https://durham-repository.worktribe.com/output/1393932

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