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A systematic review of the relationship between international diversification and innovation : a firm-level perspective

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Juergensen, Jill Josefina, Narula, Rajneesh and Surdu, Irina (2022) A systematic review of the relationship between international diversification and innovation : a firm-level perspective. International Business Review, 31 (2). 101955. doi:10.1016/j.ibusrev.2021.101955

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Official URL: http://dx.doi.org/10.1016/j.ibusrev.2021.101955

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Abstract

We conduct a systematic review of the relationship between international diversification (ID) and firm-level innovation (I), considering articles published between 1989 and 2020. The relationship between international diversification and innovation strategies is dynamic and complex, and recent evidence challenges the traditional notion that upgrading firm-specific advantages through technological innovation can be sufficient to guarantee international firm growth and performance. We develop a unified framework that integrates findings from extant ID-I research while also proposing new avenues for further research on topics such as: how firms deal with potentially conflicting ID-I goals, how underlying firm motives shape the interactions between these goals, and how new technologies and institutional dynamism increasingly influence the ID-I relationship. We also discuss how and why the new contexts in which decisions are made, together with the prevalence of relatively newer types of firms (e.g., those associated with global value chains, latest wave of emerging market multinationals, digitalized service MNEs), require a more modern conceptualization of the ID-I relationship.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Warwick Business School > Strategy & International Business
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): International business enterprises, International business enterprises -- Technological innovations, International trade, International economic integration, Business networks, Investments, Foreign, Diversification in industry
Journal or Publication Title: International Business Review
Publisher: Elsevier
ISSN: 0969-5931
Official Date: April 2022
Dates:
DateEvent
April 2022Published
2 December 2021Available
16 November 2021Accepted
Volume: 31
Number: 2
Article Number: 101955
DOI: 10.1016/j.ibusrev.2021.101955
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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