TY - JOUR

T1 - The complex interplay of firm innovation, internationalization and learning capability in driving firm performance: a configurational analysis

AU - Freixanet, Joan

AU - Federo, Ryan

PY - 2022/1/1

Y1 - 2022/1/1

N2 - Purpose: This study examines how the complex interplay of innovation, internationalization and learning capability is associated with firm performance. Design/methodology/approach: This study employs a qualitative comparative analysis (QCA) over a sample of 2,844 manufacturing firms over the period of 2008–2014. Findings: This study finds a general complementarity between high process innovation, export breadth and high organizational learning capability, and a substitution between R&D and employee training as sources of learning capability. The analyses by firm size suggest that, contrary to SMEs, large firms do not require high export breadth to achieve profitability, which is likely because they enjoy sufficient economies of scale and scope through their strong domestic presence and multiple business units. Research limitations/implications: This study examines specific facets of the three constructs, and the effect of firm size. Future research could consider other facets and contextual factors, such as managers' competencies, family firm governance or network memberships, which have potential effects on the relationships studied here. Practical implications: Firms may benefit from the various interplay effects of strategic factors to improve competitiveness. For example, leveraging the knowledge and resources stemming from their presence in multiple countries may significantly increase the efficiency and efficacy of innovation activities, eventually enhancing firm performance. Originality/value: This study is the first to employ a large sample to test the complementarity of the three activities in achieving superior profitability. The paper also provides a more nuanced view of these relationships by considering the interplay of different facets of internationalization (export breadth and intensity), innovation (product and process) and learning capability (R&D and employee training).

AB - Purpose: This study examines how the complex interplay of innovation, internationalization and learning capability is associated with firm performance. Design/methodology/approach: This study employs a qualitative comparative analysis (QCA) over a sample of 2,844 manufacturing firms over the period of 2008–2014. Findings: This study finds a general complementarity between high process innovation, export breadth and high organizational learning capability, and a substitution between R&D and employee training as sources of learning capability. The analyses by firm size suggest that, contrary to SMEs, large firms do not require high export breadth to achieve profitability, which is likely because they enjoy sufficient economies of scale and scope through their strong domestic presence and multiple business units. Research limitations/implications: This study examines specific facets of the three constructs, and the effect of firm size. Future research could consider other facets and contextual factors, such as managers' competencies, family firm governance or network memberships, which have potential effects on the relationships studied here. Practical implications: Firms may benefit from the various interplay effects of strategic factors to improve competitiveness. For example, leveraging the knowledge and resources stemming from their presence in multiple countries may significantly increase the efficiency and efficacy of innovation activities, eventually enhancing firm performance. Originality/value: This study is the first to employ a large sample to test the complementarity of the three activities in achieving superior profitability. The paper also provides a more nuanced view of these relationships by considering the interplay of different facets of internationalization (export breadth and intensity), innovation (product and process) and learning capability (R&D and employee training).

KW - Innovation

KW - Internationalization

KW - Learning capability

KW - Profitability

KW - Qualitative comparative analysis

UR - http://www.scopus.com/inward/record.url?scp=85126321117&partnerID=8YFLogxK

U2 - 10.1108/JSMA-11-2021-0220

DO - 10.1108/JSMA-11-2021-0220

M3 - Article

AN - SCOPUS:85126321117

VL - 15

SP - 766

EP - 790

JO - Journal of Strategy and Management

JF - Journal of Strategy and Management

SN - 1755-425X

IS - 4

ER -