Innovation through internationalization: A systematic review and research agenda

Abstract

In this paper we perform a systematic literature review of the diverse and somewhat fragmented current state of research on firms’ internationalization and innovation. We analyze 207 key works from 1989 through 2020 and synthesize them into an internationalization process framework that conceptually maps key internationalization-related antecedents and moderators that influence innovation behaviors and outcomes. Through an internationalization process framework, we categorize existing relevant studies into three key stages: (a) the pre-internationalization stage, (b) the internationalization entry stage, and (c) the post-internationalization stage. Furthermore, we review how firms’ various strategic decisions and operations in different stages influence their innovations by elaborating the moderating role of external country/region institutions and firm internal characteristics. Building on this review, we provide suggestions for future research to advance the developments of this domain.

25 Years internationalization research in SMEs, a scientometric analysis

“…3 had been named so, and the documents with the highest burst in Figure 10 had also reflected on this issue. From the analyses and the cases mentioned, it was concluded that the existence of a flexible strategy (as a model or roadmap) along with innovation resources to facilitate and accelerate the process of internationalization had received much attention in recent years as a necessity, this importance has been precisely emphasized byDu et al (2022) and Evers et al (2023), and they have also stated that international trade literature has seen a rapid growth of studies and despite this increase in research, the collection Knowledge about BMI and internationalization remains largely fragmented, thus putting theoretical and empirical advances in this field at risk. Although past studies on BMI have multiplied in the mainstream business literature, none have been conducted in the context of international business.…”

Offshoring, hierarchical control and transnational and dynamic environments

“…To engage in exploratory innovations as a response to the dynamic environment, diversity in technological knowledge and capabilities is the key. Collaborations with external technology providers will be beneficial for firms to obtain and access new and diversified knowledge sets and capabilities to innovate (Du et al, 2023;Wang, 2021). In the case when technological uncertainty increases, hierarchy will be a less preferred option, for hierarchical control makes it less flexible to switch over to appropriate partners' technological capabilities and thereby increases the risk of being locked into obsolete technologies (Sirmon et al, 2007;Wang, 2021;Yang et al, 2022).…”

“…To engage in exploratory innovations as a response to the dynamic environment, diversity in technological knowledge and capabilities is the key. Collaborations with external technology providers will be beneficial for firms to obtain and access new and diversified knowledge sets and capabilities to innovate (Du et al. , 2023; Wang, 2021).…”

“…Over recent decades, multinational enterprises (MNEs) have offshored their manufacturing activities to low-cost countries to improve competitive advantages. In particular, MNEs have increasingly offshored their value-added activities that have traditionally been kept in home countries, such as advanced technology design, research and development (R&D) and innovation activities for increased speed to market and access to global technological knowledge-base and talent pools (Papanastassiou et al, 2020;Du et al, 2023;Ellim€ aki et al, 2021;Rahko, 2021; for a recent review, see Papanastassiou et al (2020), Du et al (2023)). Since innovation activities have been increasingly offshored, it is a critical management decision for MNE managers to select an appropriate governance structure for innovation offshoring to protect MNE's knowledge assets on the one hand and to utilize foreign partners' R&D resources in different national environments on the other.…”

“…In particular, MNEs have increasingly offshored their value-added activities that have traditionally been kept in home countries, such as advanced technology design, research and development (R&D) and innovation activities for increased speed to market and access to global technological knowledge-base and talent pools (Papanastassiou et al. , 2020; Du et al. , 2023; Ellimäki et al.…”