Business Excellence, Vol. 14 No. 1, 2020.
Original scientific paper
https://doi.org/10.22598/pi-be/2020.14.1.27
INNOVATION-INTERNATIONALISATION LOCI IN MARKET TRANSITION OF INFORMATION AND TELECOMUNICATIONS FIRMS
Maja Bašić
orcid.org/0000-0002-1842-7091
; University of Zagreb, Faculty of Economics and Business, Croatia
Abstract
The purpose of this study is to analyse differences in a small open transitional
economy’s loci on innovation and internationalisation pace. Specifically, the effect of
absorptive capacity, product and service innovation, and institutional support on
internationalisation pace differences between firms founded in the command and
capitalist market systems. Geographical setting of this study is the Republic of Croatia,
which underwent a transition from a command to a capitalist market system in the early
1990s. Its information and telecommunications firms were pillars of innovation. The
survey on Croatian information and telecommunications’ firms’ innovation and
internationalisation was done between March and May 2014. This paper analysed 82
single firm responses based on firms’: internationalisation pace, amount of product and
service innovation, absorptive capacity and institutional support in finding
international markets. Results show that greater service innovation and smaller
institutional support lead to faster internationalisation for all firms in the sample. When
distinguishing between firms founded in the command system (“incumbents”) and those
founded in the capitalist system (“young firms”), neither the amount of absorptive
capacity, their product nor service innovation statistically significantly predict
incumbents’ internationalisation pace. Conversely, young firms’ internationalisation
pace was: (a) positively influenced by service innovation and absorptive capacity, and
(b) negatively by product innovation and institutional support. Hence, absorptive
capacity and service innovation are more important for internationalisation pace of
firms founded in the capitalist system, which is consistent with the globally integrated
growth of the information and telecommunications industry. This paper further discusses theoretical and practical implications of the identified findings with respect to
the small open transitional economy.
Keywords
Internationalisation pace; Transitional economy; Absorptive capacity; Product and service innovation; Information and ttelecommunications industry.
Hrčak ID:
239237
URI
Publication date:
17.6.2020.
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