Internationalization and innovation: A multilevel meta-analysis of national sentiments
Sihong Wu, Di Fan
kHUB post date: January 2025
Originally published: 06 February 2024 (PDMA JPIM • Vol. 42, Issue 1 • January 2025)
Read time: 50 minutes
Access the Full Article
Innovation is essential for sustaining the global competitive viability of multinational enterprises (MNEs), yet the internationalization–innovation relationship remains theoretically debatable and empirically inconsistent. To resolve the puzzle and identify the underlying mechanisms that contribute to the mixed findings, this study integrates existing empirical evidence from 298 independent samples and presents a multilevel meta-analysis. Taking an organizational learning perspective, this study explores two critical yet underexplored national sentiments that can moderate the MNEs' innovation propensity in internationalization, including technologism and nationalism. Our results show that while technologism strengthens MNEs' innovation in internationalization, nationalism weakens it. In addition, the interaction between the national sentiments exerts significant moderating effects on the relationship. Through exploring the novel drivers and barriers at country level, this study generates new and nuanced insights into innovation management in an international context. It also provides important managerial implications and discusses opportunities for future investigations into the complexity of innovation management in an interconnected and competitive world.
Practitioner Points
- MNE managers should invest in the development of learning strategies to stimulate innovation or technology advancement along the internationlization process.
- MNE managers can consider engaging in legitimacy-building activities to alleviate the challenges posed by intricate national sentiments.
- Relying solely on strategies centred around technological advancement may not be sufficient for MNEs to bolster competitiveness. Decision makers should allocate resources toward cultivating trustful relationships with diverse stakeholders in the host country, while also being attuned to the national sentiments prevalent in their home countries.
- The impact of different national sentiments on the innovation performance of MNEs during internationalization varies. Government officials are encouraged to foster a conducive environment that supports and encourages MNEs to participate in learning and collaborative activities in foreign countries.