Accumulative and Assimilative Learning, Institutional Infrastructure, and Innovation Orientation of Developing Economy Firms

Chittoor, R and Aulakh, P S and Ray, S (2015) Accumulative and Assimilative Learning, Institutional Infrastructure, and Innovation Orientation of Developing Economy Firms. Global Strategy Journal, 5 (2). pp. 133-153.

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Abstract

We examine the role of internationally acquired knowledge and supra-firm institutional infrastructure on developing firms' innovation orientation. Empirical results, based on a panel of 11,048 Indian manufacturing firms during the period 1990 to 2009, show that the macro- and micro-institutional context in which firms are embedded condition the effect of global resource and product market participation on indigenous innovation efforts. In particular, technology imports (accumulative learning) have a stronger effect on inducing investments in innovation when the macro-institutional development is weak and for firms that are affiliated to business groups. However, product market internationalization (assimilative learning) plays a more important role in facilitating innovation efforts as the institutional environment becomes stronger and for independent firms that do not possess the network advantages inherent in business groups.

ISB Creators:
ISB CreatorsORCiD
Chittoor, RUNSPECIFIED
Item Type: Article
Uncontrolled Keywords: Investments in Innovation;Organizational Learning,Developing Economies;Institutions;Business Groups;India
Subjects: Business and Management
Economics
Depositing User: Veeramani R
Date Deposited: 28 Apr 2015 12:20
Last Modified: 28 Apr 2015 12:21
URI: http://eprints.exchange.isb.edu/id/eprint/387
Publisher URL: http://dx.doi.org/10.1002/gsj.1093
Publisher OA policy: http://www.sherpa.ac.uk/romeo/issn/2042-5805/
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