TY - JOUR
T1 - Emerging-market firms’ dynamic capabilities and international performance
T2 - The moderating role of institutional development and distance
AU - Gölgeci, Ismail
AU - Assadinia, Shahin
AU - Kuivalainen, Olli
AU - Larimo, Jorma
PY - 2019
Y1 - 2019
N2 - While extant research has examined the separate influences of dynamic capabilities and institutions on international performance, their interactive role has received limited attention. Therefore, we examine the role of host-country institutional conditions in the relationships between emerging-market firms’ (EMFs) innovation-related dynamic capabilities and their international performance. We use multi-source secondary data and primary data from multiple informants from 254 Turkish international firms to test our framework. The study finds that the linkages between three innovation-related dynamic capabilities (innovativeness, supply-chain agility, and adaptability) and international performance are positively and negatively moderated by institutional development and institutional distance, but that their influences are opposite. These influences demonstrate that host-country institutional conditions shape the link between dynamic capabilities and EMFs’ international performance in a multifaceted and paradoxical fashion.
AB - While extant research has examined the separate influences of dynamic capabilities and institutions on international performance, their interactive role has received limited attention. Therefore, we examine the role of host-country institutional conditions in the relationships between emerging-market firms’ (EMFs) innovation-related dynamic capabilities and their international performance. We use multi-source secondary data and primary data from multiple informants from 254 Turkish international firms to test our framework. The study finds that the linkages between three innovation-related dynamic capabilities (innovativeness, supply-chain agility, and adaptability) and international performance are positively and negatively moderated by institutional development and institutional distance, but that their influences are opposite. These influences demonstrate that host-country institutional conditions shape the link between dynamic capabilities and EMFs’ international performance in a multifaceted and paradoxical fashion.
KW - Dynamic capabilities
KW - Emerging-market firms
KW - Institutional development
KW - Institutional distance
KW - International performance
UR - http://www.scopus.com/inward/record.url?scp=85068268153&partnerID=8YFLogxK
U2 - 10.1016/j.ibusrev.2019.101593
DO - 10.1016/j.ibusrev.2019.101593
M3 - Article
AN - SCOPUS:85068268153
SN - 0969-5931
JO - International Business Review
JF - International Business Review
M1 - 101593
ER -