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Cross-national differences in firms undertaking innovation initiatives: An application of institutional anomie theory

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  • Nam, Dae-il
  • Parboteeah, K. Praveen
  • Cullen, John B.
  • Johnson, Jean L.

Abstract

In this study, we seek to explain why firms' innovations vary across countries. Drawing on institutional anomie theory (IAT), we test cross-level hypotheses related to firm innovation. Specifically, we apply the fundamental tenets of IAT to argue that innovation is an outcome of positive deviance. Further, we posit that some social institutions (e.g., education, polity) may moderate the relationships between extant cultural dimensions such as achievement, uncertainty avoidance, and in-group collectivism and innovation. To empirically explore these possibilities, we leverage data from 26,859 firms in 27 countries. Through the use of Hierarchical Linear Modeling techniques, we reveal significant interaction effects of in-group collectivism and education, uncertainty avoidance and political stability, and in group-collectivism and political stability on cross-national levels of innovation. Finally, we discuss the theoretical and practical implications of this research and describe avenues for future scholarship in this area.

Suggested Citation

  • Nam, Dae-il & Parboteeah, K. Praveen & Cullen, John B. & Johnson, Jean L., 2014. "Cross-national differences in firms undertaking innovation initiatives: An application of institutional anomie theory," Journal of International Management, Elsevier, vol. 20(2), pages 91-106.
  • Handle: RePEc:eee:intman:v:20:y:2014:i:2:p:91-106
    DOI: 10.1016/j.intman.2013.05.001
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    References listed on IDEAS

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    11. Mourad Dakhli & Dirk De Clercq, 2004. "Human capital, social capital, and innovation: a multi-country study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 107-128, March.
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    Cited by:

    1. Back, Yujin & Praveen Parboteeah, K. & Nam, Dae-il, 2014. "Innovation in Emerging Markets: The Role of Management Consulting Firms," Journal of International Management, Elsevier, vol. 20(4), pages 390-405.
    2. Knatko, D. & Shirokova, G. & Bogatyreva, K., 2015. "Industry choice by young entrepreneurs in different country settings: The role of human and financial capital," Working Papers 6426, Graduate School of Management, St. Petersburg State University.
    3. Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2015. "R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective," Journal of International Management, Elsevier, vol. 21(1), pages 1-17.
    4. Azar, Goudarz & Ciabuschi, Francesco, 2017. "Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness," International Business Review, Elsevier, vol. 26(2), pages 324-336.
    5. repec:krk:eberjl:v:4:y:2016:i:3:p:73-84 is not listed on IDEAS
    6. Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
    7. repec:spr:manint:v:54:y:2014:i:5:d:10.1007_s11575-014-0219-2 is not listed on IDEAS
    8. Zhu, Hui & Zhu, Steven X., 2017. "Corporate innovation and economic freedom: Cross-country comparisons," The Quarterly Review of Economics and Finance, Elsevier, vol. 63(C), pages 50-65.

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