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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11 Citations (Scopus)
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Abstract

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
Volume28
Issue number6
Early online date5 Jul 2019
DOIs
Publication statusPublished - Dec 2019

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