Accumulative and Assimilative Learning, Institutional Infrastructure and Innovation orientation of Developing Economy Firms

Date

2015

Authors

Chittoor, Raveendra
Aulakh, Preet S.
Ray, Sougata

Journal Title

Journal ISSN

Volume Title

Publisher

Global Strategy Journal

Abstract

We examine the role of internationally acquired knowledge and supra-firm institutional infrastructure on developing firms’ innovation orientation. Empirical results, based on a panel of 11,048 Indian manufacturing firms during the period 1990-2009, show that the macro- and micro-institutional context in which firms are embedded condition the effect of global resource and product market participation on indigenous innovation efforts. In particular, technology imports (accumulative learning) have a stronger effect on inducing investments in innovation when the macro-institutional development is weak and for firms that are affiliated to business groups. On the other hand, product-market internationalization (assimilative learning) plays a more important role in facilitating innovation efforts as the institutional environment becomes stronger and for independent firms that do not possess the network advantages inherent in business groups.

Description

Keywords

institutional infrastructure, assimilative learning, accumulative learning, developing economy firms, economic growth, business groups

Citation

Chittoor, R., Aulakh, P.S. & Ray, S. (2015). Accumulative and Assimilative Learning, Institutional Infrastructure and Innovation orientation of Developing Economy Firms, Global Strategy Journal, 5(2), 133-158. https://doi.org/10.1002/gsj.1093.