Linking Dynamic Absorptive Capacity and Service Innovation for Born Global Service Firms: An Organization Innovation Lens Perspective |
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| Institution: | 1. Management Development Institute, Gurgaon, India;2. National Institute of Technology, Hamirpur, India;3. Indian Institute of Foreign Trade, India;4. NEOMA Business School, France;5. Indian Institute of Management, Indore, India;6. Macquarie University, Australia;1. Faculty of Economics, Oita University, 700 Dannoharu, Oita city, Oita 870-1192, Japan;2. Graduate School of Business and Finance, Waseda University, 1-6-1 Nishi-Waseda, Shinjuku-ku, Tokyo 169-8050, Japan;1. School of Management, Northwestern Polytechnical University, Xi''an, Shaanxi 710072, PR China;2. Faculty of Economics and Management, Free University of Bozen/Bolzano, Universitätsplatz 1, 93100 Bozen/Bolzano, Italy;3. Asia School of Business, 50480 Kuala Lumpur, Malaysia;4. Leuphana University of Lüneburg, Universitaetsallee 1, 21335 Lüneburg, Germany;5. Department of Management and Organisation, NUS Business School, National University of Singapore, 15 Kent Ridge Drive, 119245, Singapore;1. Waseda University, School of Commerce, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan;2. University of Hawaii at Manoa, The Shidler College of Business, Department of Marketing, 2404 Maile Way, Honolulu, HI 96822, USA;3. School of Management and Entrepreneurship, Kyambogo University, P.O.Box 1 Kyambogo, Kampala, Uganda;4. School of Business, Uganda Christian University, P.O. Box 4, Mukono, Uganda;5. Anheuser-Busch Hall 223, Department of Marketing, College of Business Administration, University of Missouri-St. Louis, One University Boulevard, St. Louis, MO 63211, USA;1. School of Finance and Economics, Guangdong Polytechnic Normal University, China;2. Sun Yat-sen Business School, Sun Yat-sen University, China;3. Lingnan College, Sun Yat-sen University, China;1. Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Via Lambruschini, 4/B, 20156 Milan, Italy;2. Centre for Applied Research on International Markets, Banking, Finance and Regulation, Baffi CAREFIN, Università Commerciale Luigi Bocconi, via Sarfatti 25, 20136 Milan, Italy;3. University of Bologna, Bologna, Italy;4. Henley Business School, University of Reading, Greenlands, Henley on Thames Oxfordshire, RG9 3AU, United Kingdom |
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| Abstract: | Grounded in the dynamic capabilities approach and organizational sub-system view on internationalization, this quantitative study develops and empirically tests a model of international market performance of born global service firms. While several scholars highlighted innovativeness as a driver of competitiveness for born global firms, the capacities underlying the born global firm's innovativeness have received limited scholarly attention, specifically, dynamic absorptive capacities (exploratory, transformative, and exploitative learning capacities). The uniqueness of this paper posits that dynamic absorptive capacities in a born global service firm have contributed to innovation and resulted in international market outcomes. The data was collected using the survey method from born global service firms and was analyzed using structured equation modeling. The findings of this study reveal that service innovation and business strategy are critical drivers of international performance for born global service firms. The paper contributes to the literature on the significance of absorptive capacity in born global service firms by identifying those dynamic absorptive capacities that operate in a composite set of relationships with other capabilities and significantly contribute to their innovation, impacting their internationalization outcomes. This study also supplements the theoretical and practical implications derived from the key findings of this study and provides future research directions. |
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