IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v64y2024i4d10.1007_s11575-024-00538-4.html

Breaking Barriers: How Do the Marketing Capabilities of Emerging-Market Micro-Multinationals Drive Social Innovation?

Author

Listed:
  • Huda Khan

    (Africa-Asia Centre for Sustainability Research, University of Aberdeen Business School, University of Aberdeen
    Innolab, University of Vaasa)

  • Joseph Amankwah-Amoah

    (Durham University Business School, Durham University)

  • Richard Lee

    (University of South Australia)

  • Gary Knight

    (Helen Simpson Jackson Endowed Chair of International Management, Willamette University)

  • Nazim Hussain

    (University of Groningen
    Vietnam National University)

Abstract

Despite the increasing importance of social innovation, research seeking to illuminate how firms engage in social innovation in emerging markets is limited. Utilizing survey data from 143 Pakistani micro-multinational firms operating in other emerging markets, this study examined how these firms undertook social innovation practices in host emerging markets. The findings indicate that the social innovation practices of these firms in host emerging markets are influenced by dynamic marketing capabilities. Furthermore, this influence is mediated by social embeddedness in the host market. Moreover, this mediated influence is positively moderated by a socially supportive culture of the host market. The impact of marketing capabilities on value creation in host emerging markets involves the serial mediation of social embeddedness and social innovation practices. The study demonstrates how resource-constrained emerging-market micro-multinational firms can generate value in host emerging markets, thereby validating the efficacy of dynamic marketing capabilities in the context of social innovation in emerging markets. The study also discusses practical and policy implications.

Suggested Citation

  • Huda Khan & Joseph Amankwah-Amoah & Richard Lee & Gary Knight & Nazim Hussain, 2024. "Breaking Barriers: How Do the Marketing Capabilities of Emerging-Market Micro-Multinationals Drive Social Innovation?," Management International Review, Springer, vol. 64(4), pages 701-726, August.
    • Handle: RePEc:spr:manint:v:64:y:2024:i:4:d:10.1007_s11575-024-00538-4
    DOI: 10.1007/s11575-024-00538-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-024-00538-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11575-024-00538-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Sinkovics, Noemi & Sinkovics, Rudolf R. & Yamin, Mo, 2014. "The role of social value creation in business model formulation at the bottom of the pyramid – Implications for MNEs?," International Business Review, Elsevier, vol. 23(4), pages 692-707.
    2. Samuel Adomako & Mai Dong Tran, 2022. "Local embeddedness, and corporate social performance: The mediating role of social innovation orientation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 329-338, March.
    3. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    4. Thomas N Gladwin & Ingo Walter, 1976. "Multinational Enterprise, Social Responsiveness, and Pollution Control," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 7(2), pages 57-74, June.
    5. Addisu A. Lashitew & Lydia Bals & Rob Tulder, 2020. "Inclusive Business at the Base of the Pyramid: The Role of Embeddedness for Enabling Social Innovations," Journal of Business Ethics, Springer, vol. 162(2), pages 421-448, March.
    6. Shin, Joonho & Mendoza, Xavier & Hawkins, Matthew A. & Choi, Changbum, 2017. "The relationship between multinationality and performance: Knowledge-intensive vs. capital-intensive service micro-multinational enterprises," International Business Review, Elsevier, vol. 26(5), pages 867-880.
    7. Sharmelly, Rifat & Ray, Pradeep Kanta, 2021. "Managing resource-constrained innovation in emerging markets: Perspectives from a business model," Technology in Society, Elsevier, vol. 65(C).
    8. Herrera, Maria Elena Baltazar, 2015. "Creating competitive advantage by institutionalizing corporate social innovation," Journal of Business Research, Elsevier, vol. 68(7), pages 1468-1474.
    9. Oliver J. Rutz & George F. Watson, 2019. "Endogeneity and marketing strategy research: an overview," Journal of the Academy of Marketing Science, Springer, vol. 47(3), pages 479-498, May.
    10. Holmström Lind, Christine & Kang, Olivia & Ljung, Anna & Rosenbaum, Paul, 2022. "Involvement of multinational corporations in social innovation: Exploring an emerging phenomenon," Journal of Business Research, Elsevier, vol. 151(C), pages 207-221.
    11. Nordin, Fredrik & Ravald, Annika, 2023. "The making of marketing decisions in modern marketing environments," Journal of Business Research, Elsevier, vol. 162(C).
    12. Semrau, Thorsten & Ambos, Tina & Sascha Kraus,, 2016. "Entrepreneurial orientation and SME performance across societal cultures: An international study," Journal of Business Research, Elsevier, vol. 69(5), pages 1928-1932.
    13. Allal-Chérif, Oihab & Guijarro-Garcia, María & Ulrich, Klaus, 2022. "Fostering sustainable growth in aeronautics: Open social innovation, multifunctional team management, and collaborative governance," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Teece, David J., 2006. "Reflections on the Hymer thesis and the multinational enterprise," International Business Review, Elsevier, vol. 15(2), pages 124-139, April.
    15. Thomas Maak, 2007. "Responsible Leadership, Stakeholder Engagement, and the Emergence of Social Capital," Journal of Business Ethics, Springer, vol. 74(4), pages 329-343, September.
    16. Rivera-Santos, Miguel & Rufín, Carlos & Kolk, Ans, 2012. "Bridging the institutional divide: Partnerships in subsistence markets," Journal of Business Research, Elsevier, vol. 65(12), pages 1721-1727.
    17. Rimsha Makeel & Jawaria Ashraf & Fitri Rini Ariyesti & Sumran Ali, 2022. "The influence of social supportive culture and performance-based culture on social enterprise performance: the mediation role of Social entrepreneurial orientation," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 205-218, December.
    18. Joon-Ho Shin & Xavier Mendoza & Matthew Hawkins & Changbum Choi, 2017. "The Relationship between Multinationality and Performance: Knowledge-Intensive vs. Capital-Intensive Service Micro-Multinational Enterprises," Post-Print hal-01515121, HAL.
    19. John Hagedoorn & Helen Haugh & Paul Robson & Kate Sugar, 2023. "Social innovation, goal orientation, and openness: insights from social enterprise hybrids," Small Business Economics, Springer, vol. 60(1), pages 173-198, January.
    20. Phong Nguyen, Nguyen & Adomako, Samuel & Ahsan, Mujtaba, 2023. "The base-of- the-pyramid orientation and export performance of Vietnamese small and medium enterprises," Journal of Business Research, Elsevier, vol. 154(C).
    21. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    22. Geoff Mulgan, 2006. "The Process of Social Innovation," Innovations: Technology, Governance, Globalization, MIT Press, vol. 1(2), pages 145-162, April.
    23. Dimitratos, Pavlos & Johnson, Jeffrey & Slow, Jonathan & Young, Stephen, 2003. "Micromultinationals:: New Types of Firms for the Global Competitive Landscape," European Management Journal, Elsevier, vol. 21(2), pages 164-174, April.
    24. Vanninen, Heini & Kuivalainen, Olli & Ciravegna, Luciano, 2017. "Rapid multinationalization: Propositions for studying born micromultinationals," International Business Review, Elsevier, vol. 26(2), pages 365-379.
    25. Miguel Rivera-Santos & Carlos Rufin & Ans Kolk, 2012. "Bridging the institutional divide : Partnerships in subsistence markets," Post-Print hal-02313074, HAL.
    26. Dimitratos, Pavlos & Amorós, José Ernesto & Etchebarne, María Soledad & Felzensztein, Christian, 2014. "Micro-multinational or not? International entrepreneurship, networking and learning effects," Journal of Business Research, Elsevier, vol. 67(5), pages 908-915.
    27. Jonathan P. Doh & Lorraine Eden & Anne S. Tsui & Srilata Zaheer, 2023. "Developing international business scholarship for global societal impact," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(5), pages 757-767, July.
    28. Sun, Wenbin & Price, Joseph & Ding, Yuan, 2019. "The longitudinal effects of internationalization on firm performance: The moderating role of marketing capability," Journal of Business Research, Elsevier, vol. 95(C), pages 326-337.
    29. Nadia Zahoor & Francis Donbesuur & Arinze Christian Nwoba & Huda Khan, 2023. "Regional expansion of emerging market SMEs: the roles of domestic market environmental uncertainty and international alliance partner diversity," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 613-643, June.
    30. Khan, Huda, 2020. "Is marketing agility important for emerging market firms in advanced markets?," International Business Review, Elsevier, vol. 29(5).
    31. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    32. Jens Beckert, 2003. "Economic Sociology and Embeddedness: How Shall We Conceptualize Economic Action?," Journal of Economic Issues, Taylor & Francis Journals, vol. 37(3), pages 769-787, September.
    33. Elizabeth Napier & Gary Knight & Yadong Luo & Andrew Delios, 2023. "Corporate social performance in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(1), pages 61-77, February.
    34. Charles Dhanaraj & Marjorie A Lyles & H Kevin Steensma & Laszlo Tihanyi, 2004. "Managing tacit and explicit knowledge transfer in IJVs: the role of relational embeddedness and the impact on performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 428-442, September.
    35. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    36. Mike Geppert & Karen Williams & Dirk Matten, 2003. "The Social Construction of Contextual Rationalities in MNCs: An Anglo‐German Comparison of Subsidiary Choice," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 617-641, May.
    37. Wendy L. Tate & Lydia Bals, 2018. "Achieving Shared Triple Bottom Line (TBL) Value Creation: Toward a Social Resource-Based View (SRBV) of the Firm," Journal of Business Ethics, Springer, vol. 152(3), pages 803-826, October.
    38. Kwok, Francis & Sharma, Piyush & Gaur, Sanjaya Singh & Ueno, Akiko, 2019. "Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    39. Jiatao Li & Maria Tereza Leme Fleury, 2020. "Overcoming the liability of outsidership for emerging market MNEs: A capability-building perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(1), pages 23-37, February.
    40. Sungho Park & Sachin Gupta, 2012. "Handling Endogenous Regressors by Joint Estimation Using Copulas," Marketing Science, INFORMS, vol. 31(4), pages 567-586, July.
    41. Maltz, Elliot & Pierson, Kawika, 2022. "Maximizing corporate social innovation to enhance social and shareholder value: A systems thinking model of industry transformation," Journal of Business Research, Elsevier, vol. 138(C), pages 12-25.
    42. Pattnaik, Chinmay & Singh, Deeksha & Gaur, Ajai S., 2021. "Home country learning and international expansion of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    43. Khan, Huda & Khan, Zaheer, 2021. "The efficacy of marketing skills and market responsiveness in marketing performance of emerging market exporting firms in advanced markets: The moderating role of competitive intensity," International Business Review, Elsevier, vol. 30(6).
    44. Dionisio, Marcelo & de Vargas, Eduardo Raupp, 2020. "Corporate social innovation: A systematic literature review," International Business Review, Elsevier, vol. 29(2).
    45. Babu, Suresh Chandra & Pinstrup-Andersen, Per, 2007. "Social innovation and entrepreneurship: Developing capacity to reduce poverty and hunger," 2020 vision briefs BB36 Special Edition, International Food Policy Research Institute (IFPRI).
    46. Ute Stephan & Lorraine M Uhlaner, 2010. "Performance-based vs socially supportive culture: A cross-national study of descriptive norms and entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1347-1364, October.
    47. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    48. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    49. Silvia Grappi & Simona Romani & Richard P. Bagozzi, 2020. "Consumer Reshoring Sentiment and Animosity: Expanding Our Understanding of Market Responses to Reshoring," Management International Review, Springer, vol. 60(1), pages 69-95, February.
    50. Paul Tracey & Nelson Phillips & Owen Jarvis, 2011. "Bridging Institutional Entrepreneurship and the Creation of New Organizational Forms: A Multilevel Model," Organization Science, INFORMS, vol. 22(1), pages 60-80, February.
    51. Mingo, Santiago & Junkunc, Marc & Morales, Francisco, 2018. "The interplay between home and host country institutions in an emerging market context: Private equity in Latin America," Journal of World Business, Elsevier, vol. 53(5), pages 653-667.
    52. L.J. Hanifan, 1916. "The Rural School Community Center," The ANNALS of the American Academy of Political and Social Science, , vol. 67(1), pages 130-138, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huda Khan & Nadia Zahoor & Shlomo Y. Tarba & Iva Atanassova, 2025. "How Can Value-Added Intermediary Service Providers and Exporting Firms Co-Create Value in Bottom of the Pyramid Markets?," Management International Review, Springer, vol. 65(3), pages 513-537, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hasanul Banna & Md Imtiaz Mostafiz & Farhad Uddin Ahmed & Shlomo Y. Tarba, 2024. "Social Innovation and the Financial Risk of EMNCs - The Contingent Role of Institutional Legitimacy," Management International Review, Springer, vol. 64(3), pages 489-525, June.
    2. Nadia Zahoor & Huda Khan & Zaheer Khan & Pervaiz Akhtar, 2024. "Responsible innovation in emerging markets’ SMEs: The role of alliance learning and absorptive capacity," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1175-1209, September.
    3. Ayse Saka-Helmhout & Maryse M. H. Chappin & Suzana B. Rodrigues, 2022. "Corporate Social Innovation in Developing Countries," Journal of Business Ethics, Springer, vol. 181(3), pages 589-605, December.
    4. Ji, Junzhe & Li, Nicolas & Liouka, Ioanna & Fletcher, Margaret & Tang, Yee Kwan & Slow, Jonathan, 2021. "“Where to” micromultinationals? A tribute to Professor Pavlos Dimitratos," European Management Journal, Elsevier, vol. 39(4), pages 404-409.
    5. Kumar, Avinash & Kumra, Rajeev & Singh, Ramendra, 2022. "Base of the pyramid producers’ constraints: An integrated review and research agenda," Journal of Business Research, Elsevier, vol. 140(C), pages 115-129.
    6. Claudia Bitencourt & Gabriela Zanandrea & Cristiane Froehlich & Manuela Rösing Agostini & Roselei Haag, 2024. "Rethinking the company's role: Creating shared value from corporate social innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2865-2877, July.
    7. Kishore Gopalakrishna Pillai & Smitha R. Nair & Nadia Zahoor & Zaheer Khan, 2024. "Driving Social Innovation in Bottom-of-the-Pyramid Markets through International Social Alliances: The Role of Legitimacy," Management International Review, Springer, vol. 64(3), pages 567-595, June.
    8. Addisu A. Lashitew & Somendra Narayan & Eugenia Rosca & Lydia Bals, 2022. "Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda," Journal of Business Ethics, Springer, vol. 178(2), pages 445-466, June.
    9. Holmström Lind, Christine & Kang, Olivia & Ljung, Anna & Rosenbaum, Paul, 2022. "Involvement of multinational corporations in social innovation: Exploring an emerging phenomenon," Journal of Business Research, Elsevier, vol. 151(C), pages 207-221.
    10. Stoian, Maria-Cristina & Dimitratos, Pavlos & Plakoyiannaki, Emmanuella, 2018. "SME internationalization beyond exporting: A knowledge-based perspective across managers and advisers," Journal of World Business, Elsevier, vol. 53(5), pages 768-779.
    11. Sushma Kumari & Vikrant Shirodkar & Steven McGuire, 2023. "Pre-Liberalization Foundations and the FDI-Based Internationalization of SMEs from Emerging Markets," Management International Review, Springer, vol. 63(4), pages 641-671, August.
    12. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    13. Knight, Gary & Khan, Zaheer & Nummela, Niina, 2025. "Born globals, international new ventures, and international entrepreneurship: Reflections and a research agenda," International Business Review, Elsevier, vol. 34(4).
    14. Shufeng Xiao & Taewoo Roh & Pervez N. Ghauri & Moon Hwan Cho & Byung Il Park, 2024. "MNCs’ Social Innovation in Emerging Markets: A Stakeholder Perspective," Management International Review, Springer, vol. 64(4), pages 633-670, August.
    15. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    16. Muhammad Adeel Munir & Amjad Hussain & Muhammad Farooq & Muhammad Salman Habib & Muhammad Faisal Shahzad, 2023. "Data-Driven Transformation: The Role of Ambidexterity and Analytics Capability in Building Dynamic and Sustainable Supply Chains," Sustainability, MDPI, vol. 15(14), pages 1-37, July.
    17. Saka-Helmhout, Ayse & Álamos-Concha, Priscilla & Polo-Barceló, Carlos & Edwards, Tony & Murray, Gregor, 2024. "Corporate social innovation by multinationals: A framework for future research," International Business Review, Elsevier, vol. 33(5).
    18. Saka-Helmhout, Ayse & Álamos-Concha, Priscilla & López, Mabel Machado & Hagan, Julie & Murray, Gregor & Edwards, Tony & Kern, Philipp & Martin, Isabelle & Zhang, Ling Eleanor, 2024. "Stakeholder engagement strategies for impactful corporate social innovation initiatives by multinational enterprises," Journal of International Management, Elsevier, vol. 30(4).
    19. Ingenbleek, Paul T.M. & Tessema, Workneh Kassa & van Trijp, Hans C.M., 2013. "Conducting field research in subsistence markets, with an application to market orientation in the context of Ethiopian pastoralists," International Journal of Research in Marketing, Elsevier, vol. 30(1), pages 83-97.
    20. Chikondi Ng’ombe & Theunis Mans & Helena Barnard, . "Greater risk and a smaller opportunity: The opportunity space of SME internationalization in lower-income countries," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:64:y:2024:i:4:d:10.1007_s11575-024-00538-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.