The role of the market sub-system and the socio-technical sub-system in innovation and firm performance : a dynamic capabilities approach

Weerawardena, Jay, Mort, Gillian, Salunke, Sandeep, Knight, Gary, & Liesch, Peter (2015) The role of the market sub-system and the socio-technical sub-system in innovation and firm performance : a dynamic capabilities approach. Journal of the Academy of Marketing Science, 43(2), pp. 221-239.

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Abstract

Organizational learning has been studied as a key factor in firm performance and internationalization. Moving beyond the past emphasis on market learning, we develop a more complete explanation of learning, its relationship to innovation, and their joint effect on early internationalization. We theorize that, driven by the founders’ international vision, early internationalizing firms employ a dual subsystem of dynamic capabilities: a market subsystem consisting of market-focused learning capability and marketing capability, and a socio-technical subsystem comprised of network learning capability and internally focused learning capability. We argue that innovation mediates the proposed relationship between the dynamic capability structure and early internationalization. We conduct case studies to develop the conceptual framework and test it in a field survey of early internationalizing firms from Australia and the United States. Our findings indicate a complex interplay of capabilities driving innovation and early internationalization. We provide theoretical and practical implications and offer insights for future research.

Impact and interest:

5 citations in Scopus
4 citations in Web of Science®
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ID Code: 69819
Item Type: Journal Article
Refereed: Yes
Keywords: International Vision, Organizational Learning, Marketing Capability, Organizational Subsystems, Early Internationalization, Dynamic Capabilities, Born Globals
DOI: 10.1007/s11747-014-0382-9
ISSN: 0092-0703
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > International Business (150308)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Organisation and Management Theory (150310)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > MARKETING (150500) > Marketing Management (incl. Strategy and Customer Relations) (150503)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2014 Academy of Marketing Science
Copyright Statement: The final publication is available at link.springer.com
Deposited On: 03 Apr 2014 23:37
Last Modified: 05 Feb 2015 15:11

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