Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures |
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| Institution: | 1. Robert W. Plaster School of Business, Missouri Southern State University, USA;2. DeVille School of Business, Walsh University, 2020 East Maple, North Canton, OH 44720, USA;3. School of Management, University of Michigan-Flint, 303 E. Kearsley Street, Flint, MI 48502, USA;1. New Jersey City University, 200 Hudson, St. Jersey City, NJ 07302, United States;2. University of Arkansas Fort Smith, 5210 Grand Ave, Fort Smith, AR 72908, United States;3. Washington State University, 377 Todd Hall Addition, Pullman, WA 99164, United States;4. Rutgers University, 100 Rockafeller Road, Piscataway, NJ 08854, United States;1. University of Essex Business School, University of Essex, Southend on Sea, SS1 1LW Essex, United Kingdom;2. Vienna University of Economics and Business, Welthandelsplatz 1, Building D1, 1020 Vienna, Austria;1. Huazhong University of Science and Technology, School of Management, 1037 Luoyu Road, Wuhan 430074, PR China;2. Shanghai University, SILC Business School, 99 ShangDa Road, BaoShan Dirstrt, Shanghai 200444, PR China;3. University of Technology Sydney, UTS Business School, 15 Broadway Ultimo, 2007, NSW, Australia;1. The University of Akron College of Business Akron, OH 44325, USA;2. Department of Comparative and International Business, Alliance Manchester Business School, The University of Manchester, Booth Street West, Manchester M15 6PB, UK;3. Rutgers Business School, Newark and New Brunswick 1 Washington Park, Room 1098, Newark, NJ 07102, USA;4. School of Business, Rutgers University, 227 Penn Street, Camden, NJ 08102–1656, USA |
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| Abstract: | There exists a need to further examine capabilities that enable emerging market international new ventures (INVs) to create innovation offerings that drive performance. Although conceptual studies highlight the importance of reconfiguration capability towards innovation and performance, such relationships in the emerging market INV context require further empirical analysis. Moreover, there is a conflict in the literature as to whether reconfiguration capability supports innovation and performance directly or indirectly. As the pursuit of opportunities beyond domestic borders is central to INV research, opportunity creation is a key inquiry to advance our understanding of how reconfiguration capability facilitates innovation and performance in the emerging market INV context. Drawing on dynamic capabilities theory and creation theory, we empirically examine the interplay between reconfiguration capability, opportunity creation, innovation, and international performance. In addition, we study opportunity creation as a mediator between reconfiguration capability towards innovation and performance, respectively. The findings reveal reconfiguration capability does not directly support innovation but does shape innovation through opportunity creation. Reconfiguration capability directly supports performance objectives of emerging market INVs, and indirectly through opportunity creation. |
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| Keywords: | International new ventures Emerging markets Reconfiguration capability Opportunity creation Innovation |
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