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

FENG Xiao-Bin; ZHOU Jia-Wei

PDF(760 KB)

Science Research Management ›› 2021, Vol. 42 ›› Issue (8) : 59-66.

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

Feng Xiaobin, Zhou Jiawei

Author information +

History +

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

Cite this article

EndNote

Ris (Procite)

Bibtex

Download Citations

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

References

[1] CHINT, LIU R, YANG X. ‘Reverse internationalization’ in Chinese firms: A study of how global start-up OEMs seek to compete domestically[J]. Asia Pacific Business Review, 2016, 22(2): 201-219.

[2] GNIZY I, SHOHAM A. Reverse internationalization: A review and suggestions for future research[M].Leonidou L C, Katsikeas C S, Samiee S, et al. Advances in Global Marketing: A Research Anthology. Switzerland: Springer International Publishing AG, 2018: 59-75.

[3] PRANGE C, BRUYAKA O. Better at home, abroad, or both? How Chinese firms use ambidextrous internationalization strategies to drive[J]. Cross Cultural & Strategic Management, 2016, 23(2): 306-339.

[4] 魏江, 徐蕾. 知识网络双重嵌入、知识整合与集群企业创新能力[J]. 管理科学学报, 2014, 17(2): 35-47.

WEI Jiang, XU Lei. Dual embeddings of knowledge network, knowledge integration，and innovation capabilities of clustered firms[J]. Journal of Management Sciences in China, 2014, 17(2): 35-47.

[5] ROSENKOPF L, NERKAR A. Beyond local search: Boundary-spanning, exploration, and impact in the optical disk industry[J]. Strategic Management Journal, 2001, 22(4): 287-306.

[6] SIDHU J S, COMMANDEUR H R, VOLBERDA H W. The multifaceted nature of exploration and exploitation: Value of supply, demand and spatial search for innovation[J]. Organization Science, 2007, 18(1): 20-38.

[7] LUO R N, LUI S S, KIM Y. Revisiting the relationship between knowledge search breadth and firm innovation[J]. Management Decision, 2017, 55(1): 2-14.

[8] HENTTONEN K, RITALA P. Search far and deep: Focus of open search strategy as driver of firm’s innovation performance[J]. International Journal of Innovation Management, 2013, 17(3): 1-20.

[9] KATILA R, AHUJA G. Something old, something new: A longitudinal study of search behavior and new product introduction[J]. Academy of Management Journal, 2002, 45(8): 1183-1194.

[10] PATEL P C, FERNHABER S A, MCDOUGALL-COVIN P P, et al. Beating competitors to international markets: The value of geographically balanced networks for innovation[J]. Strategic Management Journal, 2014, 35(5): 691-711.

[11] 奉小斌. 集群新创企业平行搜索对产品创新绩效的影响: 管理者联系的调节作用[J]. 科研管理, 2017, 38(10): 22-30.

FENG Xiaobin. The effect of parallel search of new cluster ventures on product innovation performance: The moderating role of managerial ties[J]. Science Research Management, 2017, 38(10): 22-30.

[12] SHARMA P, SALVATO C. Commentary: Exploiting and exploring new opportunities over life cycle stages of family[J]. Entrepreneurship Theory and Practice, 2011, 35(6): 1199-1205.

[13] GALKINA T, CHETTY S. Effectuation and networking of internationalizing SMEs[J]. Management International Review, 2015, 55(5): 647-676.

[14] 芮正云, 罗瑾琏. 企业创新搜寻策略的作用机理及其平衡——一个中国情境下的分析框架与经验证据[J]. 科学学研究, 2016, 34(5): 771-780.

RUI Zhengyun, LUO Jinlian. Mechanism and balance of innovation search: A theoretical framework and empirical evidence based on the context of China[J]. Studies in Science of Science, 2016, 34(5): 771-780.

[15] 吴航, 陈劲. 企业实施国际化双元战略的创新效应——以竞争强度为调节[J]. 科学学研究, 2018, 36(2): 334-341.

WU Hang, CHEN Jin. Impacting mechanism of international ambidexterity on innovation performance: The moderating effect of internal and external competitive intensity[J].Studies in Science of Science, 2018, 36(2): 334-341.

[16] WU J, WU Z F. Local and international knowledge search on product innovation: The moderating role of technology boundary spanning[J]. International Business Review, 2014, 23(3): 542-551.

[17] LAURSEN K, SALTER A. Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms[J]. Strategic Management Journal, 2006, 27(2): 131-150.

[18] GUO B, WANG Y Q, XIE X Y, et al. Search more deeply or search more broadly? An empirical study of external knowledge search strategy in manufacturing SMEs[J]. Asian Journal of Technology Innovation, 2015, 23(1): 87-106.

[19] LECINTHAL D, MARCH J. The myopia of learning[J]. Strategic Management Journal, 1993, 14(S2):95-112.

[20] 禹献云, 周青. 外部搜索策略、知识吸收能力与技术创新绩效[J]. 科研管理, 2018, 39(8):11-18.

YU Xianyun，ZHOU Qing. Impact of external search tactics and knowledge absorptive capacity on technology innovation performance[J]. Science Research Management, 2018, 39(8):11-18.

[21] WUA Q, WEI J. The effects of geographic search on product innovation in industrial cluster firms in China[J]. Management and Organization Review, 2013, 9(3): 465-487.

[22] GRIMPE C, SOFKA W. Search patterns and absorptive capacity: Low- and high-technology sectors in European countries[J]. Research Policy, 2009, 38(3): 495-506.

[23] TERJESEN S, PATEL P C. In search of process innovations: The role of search depth, search breadth, and the industry environment[J]. Journal of Management, 2017, 43(5): 1421-1446.

[24] SARASVATHY S D. Causation and effectuation: Towards a theoretical shift from economic inevitability to entrepreneurial contingency[J]. Academy of Management Review, 2001, 26(2): 243-263.

[25] CAI L, GUO R P, FEI Y, et al. Effectuation, exploratory learning and new venture performance: Evidence from China[J]. Journal of Small Business Management, 2017, 55(3): 388-403.

[26] DEW N, READ S, SARASVATHY S D, et al. On the entrepreneurial genesis of new markets: Effectual transformations versus causal search and selection[J]. Journal of Evolutionary Economics, 2011, 21(2): 231-253.

[27] BRETTEL M, MAUER R, ENGELEN A, et al. Corporate effectuation: Entrepreneurial action and its impact on R&D project performance[J]. Journal of Business Venturing, 2012, 27(2):167-184.

[28] DELIGIANNI I, VOUDOURIS I, LIOUKAS S. Do effectuation processes shape the relationship between product diversification and performance in new ventures? [J]. Entrepreneurship Theory & Practice, 2017, 41(3): 891-893.

[29] KATZ R, ALLEN T J. Investigating the Not Invented Here(NIH) syndrome: A look at the performance, tenure, and communication patterns of 50 R&D project groups[J]. R&D Management, 1982, 12(1): 7-20.

[30] CHANDLER G N, DETIENNE D R, MCKELVIE A, et al. Causation and effectuation processes: A validation study[J]. Journal of Business Venturing, 2011, 26 (3): 375-390.