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Effects of Internationalization on Innovation in the Service Industry: Evidence from Korea

Author

Listed:
  • Lee , Jaeho

    (Kyung Hee University)

  • Lee, Ji-Hwan

    (Korea Advanced Institute of Science and Technology)

  • Choi, Baeho

    (Korea Development Bank)

Abstract

This paper examines the impact of internationalization on the product, process and organizational innovations of Korean service firms. Despite the increasing importance of the service sector and the discrepancies in the natures of the manufacturing and service industries, the internationalization-innovation link in the context of service firms has rarely been examined empirically on a large sample. Based on the results of the logistic regressions using the 2006 Korean Innovation Survey data, we found that Korean service firms' international expansion is significantly and positively associated with their product and organizational innovations. In addition, the magnitude of the estimates in our models revealed that internationalization has a greater impact on product innovation than on process or organizational innovation.

Suggested Citation

  • Lee , Jaeho & Lee, Ji-Hwan & Choi, Baeho, 2014. "Effects of Internationalization on Innovation in the Service Industry: Evidence from Korea," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 18(4), pages 339-366, December.
    • Handle: RePEc:ris:eaerev:0033
    DOI: 10.11644/KIEP.JEAI.2014.18.4.285
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    Cited by:

    1. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).

    More about this item

    Keywords

    Internationalization; Export; Innovation; Service Industry; Korea;
    All these keywords.

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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