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Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance

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  • Silva, Graça Miranda
  • Styles, Chris
  • Lages, Luis Filipe

Abstract

The literature suggests that the greater the perceived novelty of a firm’s products and markets, the greater the potential value to the user (Lepak et al., 2007). In this study we analyze the extent to which breakthrough innovation (both tech-innovation and market-innovation) has a positive impact on both economic and strategic export performance. Tech-innovation incorporates technological developments to improve customer benefits versus existing alternatives in the market. Our findings reveal that tech-innovation has a positive impact on the economic and strategic export performance of firms. This relationship becomes stronger when more human resources are available and the exporter becomes more oriented toward the importer. In less competitive markets, the positive relationship between tech-innovation and both types of export performance becomes even stronger.

Suggested Citation

  • Silva, Graça Miranda & Styles, Chris & Lages, Luis Filipe, 2017. "Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance," International Business Review, Elsevier, vol. 26(2), pages 391-404.
    • Handle: RePEc:eee:iburev:v:26:y:2017:i:2:p:391-404
    DOI: 10.1016/j.ibusrev.2016.10.001
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    9. Mohammad Falahat & Yan-Yin Lee & Pedro Soto-Acosta & T. Ramayah, 2021. "Entrepreneurial, market, learning and networking orientations as determinants of business capability and international performance: the contingent role of government support," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1759-1780, December.
    10. Zhou, Xiaoxiao & Cai, Ziming & Tan, Kim Hua & Zhang, Linling & Du, Juntao & Song, Malin, 2021. "Technological innovation and structural change for economic development in China as an emerging market," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    11. Mohd Nur Ruzainy Alwi* & Amar Hisham Jaaffar & Nur Amira Yahya & Nurnazurah Azami, 2018. "Research Framework for the Impact of Innovative Mindset, Innovative Behaviour, and Innovation Performance on Competitive Advantage: An Application for Halal Smes Owner-Manager," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 718-723:2.
    12. Halima Jibril & Stephen Roper, 2022. "Of chickens and eggs: Exporting, innovation novelty and productivity," Working Papers 027, The Productivity Institute.
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    14. Nicole F. Richter & Sven Hauff & Christian M. Ringle & Siegfried P. Gudergan, 2022. "The Use of Partial Least Squares Structural Equation Modeling and Complementary Methods in International Management Research," Management International Review, Springer, vol. 62(4), pages 449-470, August.
    15. Jianjun Wang & Ning Cao & Yulu Wang & Yu Wang, 2022. "The Impact of Knowledge Power on Enterprise Breakthrough Innovation: From the Perspective of Boundary-Spanning Dual Search," Sustainability, MDPI, vol. 14(17), pages 1-19, September.
    16. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.
    17. Wu, Lichao & Wei, Yingqi & Wang, Chengang & McDonald, Frank & Han, Xia, 2022. "The importance of institutional and financial resources for export performance associated with technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    18. Mariem Khadhraoui & Michel Plaisent & Lassaad Lakhal & Bernard Prosper, 2019. "The Impact of Entrepreneurial Orientation on Spin-Offs’ Performance: A Cross-Cultural Study," SAGE Open, , vol. 9(3), pages 21582440198, July.
    19. Dong, Guowei & Kokko, Ari & Zhou, Haoyong, 2022. "Innovation and export performance of emerging market enterprises: The roles of state and foreign ownership in China," International Business Review, Elsevier, vol. 31(6).
    20. Sprong, Niels & Driessen, Paul H. & Hillebrand, Bas & Molner, Sven, 2021. "Market innovation: A literature review and new research directions," Journal of Business Research, Elsevier, vol. 123(C), pages 450-462.

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