The Context Sensitivity of International Entrepreneurial Orientation and the Role of Process and Product Innovation Capabilities

Abstract

Drawing on a contingency perspective of the resource-based view of the firm, we test the thesis that a relationship between international entrepreneurial orientation (IEO) and the international performance of export-manufacturing firms is context-sensitive and contingent on innovation capabilities. Using time-lagged survey data from 369 Bangladeshi export-manufacturing firms in a least developed country (LDC) as an extreme empirical context, we predict that process and product innovation capabilities are essential to the relationship between IEO and international performance among export-manufacturing firms. We find that the effect of IEO on international performance is not positive; however, the relationship becomes positive when moderated by process and product innovation capabilities. International entrepreneurial firms in an LDC succeed when they can better align IEO-driven efforts with these capabilities. Our study advances knowledge on the context sensitivity of IEO and embellishes a resource-based theory of IEO.1 Least-developed countries are categorized based on the parameter of low gross national income per capita, weak human development index and high level of economic vulnerability (UNCTAD, 2015). Forty-nine countries are listed as LDC.

Innovation and commercialisation: the role of the international dynamic marketing capability in Malaysian international entrepreneurial firms

“…This advances the logic of the DC theory by legitimising it in relation to research on the commercialisation of products/services, prioritising the IDMC. The findings also extend the extant research by unveiling why entrepreneurial firms operating beyond their own national borders must build a strong DC specific to the international market in order to commercialise any innovative products/ services stemming from exploratory and exploitative innovation (Buccieri et al, 2020) and achieve performance outcomes (Mostafiz et al, 2022a). On this basis, the authors developed a critical understanding of how IEFs generate economic value from "exploratory and exploitative innovation" by nurturing the IDMC.…”

“…, 2018; Elango and Pattnaik, 2013). A network strategy is crucial for IEFs in emerging economies (Gnizy, 2019), as the shortage of domestic resources and infrastructure (Mostafiz et al. , 2022a, b) prompts them to expand their international networks to compensate (Ciravegna et al.…”

Entrepreneurial orientation and knowledge management: comparing configurations of native and immigrant entrepreneurial firms

“…, 2020; Mostafiz et al. , 2022a, b), context-specificity of knowledge and KM processes (Simeonova, 2018) and enriches the theoretical scaffolding around EO-configurations as called for by Wales et al. (2021).…”

“…Notably, studies tend to overlook the context of EO (Yin et al, 2020) and how the operating context of differently profiled firms can alter the EO's rent-yielding effect (Hughes et al, 2022). Entrepreneurial firms in emerging economies experience constrained access to valuable knowledge while enduring significant market uncertainties (Ojala, 2016;Mostafiz et al, 2022b). The severity of these limitations on the entrepreneurial firm also depends on whether the context of the firm is native or immigrant (Webb et al, 2011).…”

“…Entrepreneurial firms in emerging economies experience constrained access to valuable knowledge while enduring significant market uncertainties (Ojala, 2016; Mostafiz et al ., 2022b). The severity of these limitations on the entrepreneurial firm also depends on whether the context of the firm is native or immigrant (Webb et al.…”