The complex interplay of firm innovation, internationalization and learning capability in driving firm performance: a configurational analysis

Abstract

Purpose

This study examines how the complex interplay of innovation, internationalization and learning capability is associated with firm performance.

Design/methodology/approach

This study employs a qualitative comparative analysis (QCA) over a sample of 2,844 manufacturing firms over the period of 2008–2014.

Findings

This study finds a general complementarity between high process innovation, export breadth and high organizational learning capability, and a substitution between R&D and employee training as sources of learning capability. The analyses by firm size suggest that, contrary to SMEs, large firms do not require high export breadth to achieve profitability, which is likely because they enjoy sufficient economies of scale and scope through their strong domestic presence and multiple business units.

Research limitations/implications

This study examines specific facets of the three constructs, and the effect of firm size. Future research could consider other facets and contextual factors, such as managers' competencies, family firm governance or network memberships, which have potential effects on the relationships studied here.

Practical implications

Firms may benefit from the various interplay effects of strategic factors to improve competitiveness. For example, leveraging the knowledge and resources stemming from their presence in multiple countries may significantly increase the efficiency and efficacy of innovation activities, eventually enhancing firm performance.

Originality/value

This study is the first to employ a large sample to test the complementarity of the three activities in achieving superior profitability. The paper also provides a more nuanced view of these relationships by considering the interplay of different facets of internationalization (export breadth and intensity), innovation (product and process) and learning capability (R&D and employee training).

Citation

Freixanet, J. and Federo, R. (2022), "The complex interplay of firm innovation, internationalization and learning capability in driving firm performance: a configurational analysis", Journal of Strategy and Management, Vol. 15 No. 4, pp. 766-790. https://doi.org/10.1108/JSMA-11-2021-0220