{"title":"Adapting innovation capabilities in emerging economies: the role of learning and cultural and institutional distance in MNC subsidiaries in Korea","authors":"Chulhyung Park, Kyuho Jin","doi":"10.1108/ccsm-09-2023-0200","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p> The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs). However, it is less certain that their innovative capabilities imported from the home country function effectively in the host country from the outset. This study examines the performance of the innovation capabilities of MNC subsidiaries in emerging economies over time by considering the gradual process of their learning about host countries.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p> We employed stochastic frontier analysis to measure innovation capabilities, our focal construct. For regression analysis, we applied the Mundlak estimator, a variant of the fixed-effects panel estimator, to a sample comprising subsidiaries of MNCs from technologically advanced nations operating in Korea between 2006 and 2016.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p> Our results indicate that the innovation capabilities of MNC subsidiaries initially underperform those of local firms but improve over time, eventually surpassing the capabilities of their local counterparts. Furthermore, our findings reveal that institutional distance amplifies the underperformance of the innovation capabilities of MNC subsidiaries.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p> This study contributes to the literature by extending both theoretical development and empirical measurement of innovation capabilities in cross-national settings. Additionally, it deepens our understanding of whether and how MNC subsidiaries adapt their innovation capabilities to the local market environment.</p><!--/ Abstract__block -->","PeriodicalId":51820,"journal":{"name":"Cross Cultural & Strategic Management","volume":"73 1","pages":""},"PeriodicalIF":1.9000,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Cross Cultural & Strategic Management","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1108/ccsm-09-2023-0200","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
The rise of emerging economies in the innovation landscape has often been attributed to the positive spillovers of innovation capabilities from multinational corporations (MNCs). However, it is less certain that their innovative capabilities imported from the home country function effectively in the host country from the outset. This study examines the performance of the innovation capabilities of MNC subsidiaries in emerging economies over time by considering the gradual process of their learning about host countries.
Design/methodology/approach
We employed stochastic frontier analysis to measure innovation capabilities, our focal construct. For regression analysis, we applied the Mundlak estimator, a variant of the fixed-effects panel estimator, to a sample comprising subsidiaries of MNCs from technologically advanced nations operating in Korea between 2006 and 2016.
Findings
Our results indicate that the innovation capabilities of MNC subsidiaries initially underperform those of local firms but improve over time, eventually surpassing the capabilities of their local counterparts. Furthermore, our findings reveal that institutional distance amplifies the underperformance of the innovation capabilities of MNC subsidiaries.
Originality/value
This study contributes to the literature by extending both theoretical development and empirical measurement of innovation capabilities in cross-national settings. Additionally, it deepens our understanding of whether and how MNC subsidiaries adapt their innovation capabilities to the local market environment.
期刊介绍：
Cross Cultural & Strategic Management (CCSM), is dedicated to providing a forum for the publication of high quality cross-cultural and strategic management research in the global context. CCSM is interdisciplinary in nature and welcomes submissions from scholars from international business, management and other disciplines, such as anthropology, economics, political science, psychology and sociology. The goal of CCSM is to publish discerning, theoretically grounded, evidence-based and cutting edge research on issues relevant to all aspects of global management. CCSM is especially interested in theoretical and empirical papers that investigate new and unique ideas and/or are multilevel (micro-meso-macro) and/or are multidisciplinary in nature. Research papers submitted to CCSM are expected to include an answer to the question: What is the contribution of this paper to the literature and the field of international business and managing in the global context? CCSM accepts theoretical/conceptual and empirical papers based on quantitative and qualitative research endeavors that advance our overall knowledge of international business. This includes research that yields positive, neutral or negative findings as long as these studies are based on sound research methodology, and have a good command of the theory/literature that pertains to the phenomena under investigation. These studies should also provide a more in-depth interpretation of the reason(s) for the findings and include more detailed recommendations for future research directions.
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