Emerging-market firms’ dynamic capabilities and international performance: The moderating role of institutional development and distance

Ismail Gölgeci, Shahin Assadinia, Olli Kuivalainen, Jorma Larimo

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41 Citations (Scopus)
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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.
Original languageEnglish
Article number101593
JournalInternational Business Review
Issue number6
Early online date5 Jul 2019
Publication statusPublished - Dec 2019

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