A research on the relationship between multidimensional boundary-spanning search and innovation performance for reverse internationalization enterprise: The moderating role of effectuation

Abstract

Abstract: In recent years, developed countries have actively implemented the "manufacturing backshoring" strategy. Facing the challenges of global trade war initiated by Trump and low-cost competition among Southeast Asian producers, China′s export-oriented enterprises have tried to implement the reverse internationalization (RI) strategy. RI refers to the process in which an export-oriented enterprise is embedded into the global value chain to provide global OEM or foreign trade services, and seeks to upgrade the value chain by exploiting the domestic market. Although the impacts of boundary-spanning search on the innovation of reverse internationalization enterprise (RIE) have attracted much attention, the effects of multidimensional search integration of knowledge network space and knowledge source utilization on innovation performance have been neglected, and the complex decision-making situation of enterprise boundary-spanning search has not been revealed. Therefore, this research discusses the non-liner effects of multidimensional boundary-spanning search on innovation performance as well as the moderating effects of effectuation.
This paper firstly defines and analyzes the relevant theories and concepts of multidimensional boundary-spanning search and effectuation based on the literature review. The multidimensional boundary- spanning search is divided into four dimensions of domestic focused search, domestic multi-focus search, global focused search, and global multi-focus search. The conceptual model of RIEs multidimensional boundary- spanning search effects on innovation performance are put forward based on theoretical discussion. Then, data of 212 RIEs in Yangtze River Delta and Pearl River Delta are used to testify the research hypothesis with statistical methods, such as correlation analysis, reliability and validity analysis, and multilevel regression analysis. The results indicate that both domestic focused search and global focused/multi-focus search of RIEs have inverted U-shaped effects on innovation performance, but domestic multi-focus search only has a positive effect on innovation performance. Furthermore, effectuation strengthens the relationship between domestic/global multi-focus search of RIEs and innovation performance, but weakens the curvilinear relationship between domestic/global focused search and innovation performance.
The finding enriches the researches about the curvilinear relationship between boundary-spanning search and innovation performance, together with the integration research of effectuation and boundary-spanning search, which will provide guidance for RIEs to implement strategic transformation and innovation. Firstly, RIEs should balance the use of focused search strategy or multi-focus search strategy to obtain innovative resources and knowledge in dual networks. Secondly, RIEs should choose strategy according to the condition of external environment and internal resource, as to avoid the negative effects of over-search. Finally, it is better for RIEs to search and integrate a variety of innovative resources by effectuation in an uncertain environment, to avoid falling into capability trap or failure trap.

Key words: reverse internationalization enterprise, multidimensional boundary-spanning search, dual network, effectuation, innovation performance

Feng Xiaobin, Zhou Jiawei. A research on the relationship between multidimensional boundary-spanning search and innovation performance for reverse internationalization enterprise: The moderating role of effectuation[J]. Science Research Management, 2021, 42(8): 59-66.

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