The impact of foreign influence on exporting through open innovation

Thompson, P. ORCID: 0000-0003-1961-7441 and Zang, W. ORCID: 0000-0002-0522-8739, 2020. The impact of foreign influence on exporting through open innovation. Growth and Change, 51 (1), pp. 256-277. ISSN 0017-4815

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Foreign direct investment brings both increased competitive pressures and opportunities for domestic Small and Medium Sized Enterprises (SMEs). Competition may force them to seek new international markets, but also provide access to international customers. However, as economies become more knowledge‐based in order to access international markets, SMEs must seek to innovate. This study examines how foreign firm presence and innovation influence the exporting activities of SMEs. It contributes to the existing literature by dividing innovation into product/process innovation and in‐house/open innovation. With open innovation, products are more likely to be novel and productivity boosted to a larger degree. We interact different types of innovation with foreign influence to examine whether there is a moderating influence on the relationship. The individual firm level data and foreign influence data are from the Longitudinal Small Business Survey and Office for National Statistics. Whether firms are active exporters is explored using multilevel logit regressions. Both innovative activities and the foreign influence increase the likelihood of exporting. In‐house product innovation boosts export propensity to a lesser degree in areas with higher levels of foreign influence. The hypothesis that open innovation has more impact on exporting activities when foreign influence is greater is not supported for either type of innovation.

Item Type: Journal article
Publication Title: Growth and Change
Creators: Thompson, P. and Zang, W.
Publisher: Wiley
Date: March 2020
Volume: 51
Number: 1
ISSN: 0017-4815
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 05 Dec 2019 14:26
Last Modified: 03 Dec 2021 03:00

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