Special Issue Call for Papers
Cultural dynamics and the evolution of innovation capability of emerging market firms:
The business landscape of innovation has been drastically changed by emerging market firms (EMFs) (cf. Anand, McDermott, Mudambi, and Narula, 2021). Over the last two decades, various high-technology and knowledge-intensive sectors have grown, particularly in emerging markets, and are now playing a leading role in the global innovation networks (Awate, Larsen, and Mudambi, 2012; He, Khan, Lew, and Fallon, 2019; Narula, 2015; Nguyen, Verreynne, Steen, and Torres de Oliveira, 2023), and EMFs have increasingly begun to play active roles as a new knowledge reservoir across industries in the global arena (e.g., Anand et al., 2021; Buckley and Hashai, 2014; Govindarajan and Ranmamurti, 2011; He et al., 2019; Hertenstein, and Alon, 2022; Luo and Tung, 2018). Due to recent trends, the evolutionary path of innovation capability of EMFs has received increasing scholarly attention (Anand et al., 2021; Luo, 2016; Peng, Fang, and Lockett, 2021; Tseng, 2009). Thus, we believe that now is the time to conduct a comprehensive survey and examination of their past paths and future innovation trajectories.
We argue that an increase in innovation capability of EMFs can influence their strategic position in the existing value chain in two ways. At the micro-level, accumulation of valuable and novel knowledge embedded in human resources enhances the competitiveness of firms and organizations (Beechler and Woodward, 2009; Bowman and Swart, 2006; Choi, Ravichandran and O’Connor, 2018), and this superiority often helps to win other competitors (including rivals from advanced economies) in the performance race. In this sense, behind a “why” is always the “who,” which is represented by the human resources within organizations. This “who” is much more influential than the “why” because the “who” functions as a fuse to start a movement.
From the macro-level perspective, increasing innovation capabilities in an appropriate time enables firms in emerging markets (e.g., China and India), which try to aggressively leap into advanced economies by acquiring firms, to move along or climb the value chain (Fu, Sun, and Ghauri, 2018; He, Khan, and Shenkar, 2018; Plechero and Chaminade, 2013; Yu, Malerba, Adams, and Zhang, 2017). Despite this, another component associated with innovation management and missed by previous studies exploring innovation capabilities of EMFs is “when”. This component includes an understanding of the right time for innovation of EMFs. In other words, many EMFs are characterized by two sides of the same coin. That is, they are not only sometimes referred to as entities that successfully achieve technological innovation but also often suffer from organizational weaknesses in various aspects, such as marketing and global strategy (Douthwaite, Keatinge, and Park, 2001; Greve and Seidel, 2015; Krammer and Jimenez 2020; Schanz, Hüsig, Dowling, and Gerybadze, 2011). Thus, they must be able to determine whether they need direction and stability or acceleration and new innovation. EMFs that can link to the sentiment of the era have greater chances of growing increasingly (Guan, Jichard, Tang, and Lau, 2009; He et al., 2018; Munjal, Bhasin, Nandrajog, and Kundu, 2022).
Therefore, an important research agenda needing to be considered is “what innovation” in that it is closely associated with organizational performance. In addition, what has changed over recent years is the “who” and the “when”. A “why” alone does not create innovation, but the “who” at the right time (i.e., when) does. Moreover, timing is particularly important in the emerging market contexts, which always experience dynamic economic and institutional changes. However, previous studies have generally focused on examining why firms attempt to accomplish innovation and how they achieve it. This represents an important research gap in the literature concerning the evolutionary process of innovative capability building in EMFs.
In addition, the effects of cultural differences for innovation undertaken by EMFs are an interesting and extremely multifaceted topic. It cannot be denied that a cross-cultural capability is crucial in globalized and hyper-connected world, and its effects for innovation are no exception. These capabilities are particularly meaningful in EMFs, in that they need to catch up with firms in advanced economies. In this vein, the former firms (i.e., EMFs) should obviously consider what, who, and when to adapt innovation to the cultures and unique attributes of different countries and regions, but less attention has been paid to exploring the cultural dynamics for innovation, as well as the primary cultural mechanisms that EMFs employ to build their innovation in the global context.
For instance, a group of researchers, such as Stahl and Tung (2015) suggest that cross-cultural diversity tends to have a negative effect on capability exploiting overseas R&D units but may be beneficial for capability exploring R&D units aiming to enhance their competitive advantage by seeking new knowledge. The studies above, experimenting an association between culture and innovation, are only a few, and thus those studies are works of another kind, but such exceptional empirics, scrutinizing the cultural dynamics and its influences on innovation, seem to merely presume that some cultures tend to be more favorable for high innovation performance than others (Espig et al., 2021). We believe that well performing firms and EMFs winning in the learning race should take adequate account of these cultural differences, and purposefully shape a culture that is designed to drive more innovation, indicating cross-cultural competency is more important than ever. These discussions argue that understanding the unique process of innovation building in EMFs by unpacking the value of cultural dynamics within these firms can assist us in developing new and more systematic models and frameworks to explain innovation capabilities of EMFs.
By recognizing these current gaps, this special issue aims to investigate the value of cultural dynamics within EMFs and their evolutionary path in the development of innovation capabilities, and explores several key questions to stimulate unexplored issues in this important knowledge domain. We seek quantitative and qualitative papers that advance our knowledge on international business, with a special focus on innovation at the intersection of culture. In particular, we seek papers guiding the evolution of theoretical perspectives and developing extant theoretical lens into the phenomenon suggested by the special issue theme. Papers may address, but are not limited to, the following potential research questions.
Byung Il Park (Hankuk University of Foreign Studies, South Korea, [log in to unmask])
Shufeng (Simon) Xiao (Sookmyung Women’s University, South Korea, [log in to unmask])
Peter Shi (Macquarie University, Australia, [log in to unmask])
Zaheer Khan (University of Aberdeen, UK, zaheer.khan@abdn.ac.uk)
Papers for the special issue should be prepared according to CCSM guidelines for authors: here.
Publication of the special issue is planned for 2025. Please submit your paper via the journal Submission System: here.
Authors should indicate that they would like their submission to be considered for the special issue “Cultural Dynamics and Innovation in Emerging Market Firms”. All submissions will go through the CCSM regular double-blind review process and follow the standard norms and processes.
For informal inquires related to the special issue, proposed topics, and potential fit with the special issue objectives, please contact the following guest editors:
Byung Il Park (Hankuk University of Foreign Studies, South Korea, [log in to unmask])
Shufeng (Simon) Xiao (Sookmyung Women’s University, South Korea, [log in to unmask])
Peter Shi (Macquarie University, Australia, [log in to unmask])
Zaheer Khan (University of Aberdeen, UK, zaheer.khan@abdn.ac.uk)
Opening date: 1st of May, 2023
Closing date: 27th August, 2023
Anand, J., McDermott, G., Mudambi, R., and Narula, R. (2021), “Innovation in and from emerging economies: New insights and lessons for international business research”. Journal of International Business Studies, Vol. 52, pp. 545–559.
Awate, S., Larsen, M. M., and Mudambi, R. (2012), “EMNE catch‐up strategies in the wind turbine industry: Is there a trade‐off between output and innovation capabilities?” Global Strategy Journal, Vol. 2 No. 3, pp. 205–223.
Beechler, S., and Woodward, I. C. (2009), “The global “war for talent””. Journal of International Management, Vol. 15 No. 3, pp. 273–285.
Bowman, C., and Swart, J. (2006), “Whose human capital? The challenges of value capture when capital is embedded”. Journal of Management Studies, Vol. 44 No. 4, pp. 488–505.
Buckley, P. J., and Hashai, N. (2014), “The role of technological catch up and domestic market growth in the genesis of emerging country-based multinationals”. Research Policy, Vol. 43 No. 2, pp. 423–437.
Choi, B., Ravichandran, T., and O'Connor, G. C. (2018), “Organizational conservatism, strategic human resource management, and breakthrough innovation”. IEEE Transactions on Engineering Management, Vol. 66 No. 4, pp. 529–541.
Douthwaite, B., Keatinge, J. D. H., and Park, J. R. (2001), “Why promising technologies fail: The neglected role of user innovation during adoption”. Research Policy, Vol. 30 No. 5, pp. 819–836.
Espig, A., Mazzini, I. T., Zimmermann, C., and de Carvalho, L., C. (2021), “National culture and innovation: A multidimensional analysis”. Innovation and Management Review, ahead-of-print. https://doi.org/10.1108/INMR-09-2020-0121
Fu, X., Sun, Z., and Ghauri, P. (2018), « Reverse knowledge acquisition in emerging market MNEs: The experience of Huawei and ZTE”. Journal of Business Research, Vol. 93, pp. 202–215.
Govindarajan, V., and Ramamurti, R. (2011), “Reverse innovation, emerging markets, and global strategy”. Global Strategy Journal, Vol. 1 No. 3‐4, pp. 191–205.
Greve, H. R., and Seidel, M. D. L. (2015), “The thin red line between success and failure: Path dependence in the diffusion of innovative production technologies”. Strategic Management Journal, Vol. 36 No. 4, pp. 475–496.
Guan, J. C., Richard, C. M., Tang, E. P., and Lau, A. K. (2009), “Innovation strategy and performance during economic transition: Evidences in Beijing, China”. Research Policy, Vol. 38 No. 5, pp. 802–812.
He, S., Khan, Z., Lew, Y.K., and Fallon, G. (2019), “Technological innovation as a source of Chinese multinationals’ firm-specific advantages and internationalization”. International Journal of Emerging Markets, Vol. 14 No.1, pp.115-133.
He, S., Khan, Z., and Shenkar, O. (2018), “Subsidiary capability upgrading under emerging market acquirers”. Journal of World Business, Vol. 53 No. 2, pp.248-262.
Hertenstein, P., and Alon, I. (2022), “A learning portal model of emerging markets multinationals”. Global Strategy Journal, Vol. 12 No. 1, pp. 1–29.
Krammer, S M. S., and Jiménez, A. (2020), “Do political connections matter for firm innovation? Evidence from emerging markets in Central Asia and Eastern Europe”. Technological Forecasting and Social Change, Vol. 151, 119669.
Luo, Y. (2016), “Toward a reverse adaptation view in cross-cultural management”. Cross Cultural & Strategic Management, Vol. 23 No. 1, pp. 29–41.
Luo, Y., and Tung, R. L. (2018), “A general theory of springboard MNEs”. Journal of International Business Studies, Vol. 49 No. 2, pp. 129–152.