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Cultural
dynamics and the evolution of innovation capability of emerging market firms:
“Why and how” is history, and the new era is “what, who, and when”

 

Closes: 27 Aug 2023

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Journal

Cross Cultural
&amp; Strategic Management

Guest editor(s)

Byung Il Park, <a href="mailto:[log in to unmask]">Shufeng
(Simon) Xiao, Peter Shi, <a href="mailto:[log in to unmask]">Zaheer Khan

Opening date: 1st May
2023

Introduction: 

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&amp;D units but may be beneficial for capability exploring R&amp;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.

·        
Are there EMFs, which successfully achieve innovation by identifying some
cultures as intrinsically better at innovation than others? What facilitates
these to obtain the innovation?

·        
What are critical mechanisms boosting strong correlations between certain
cultural characteristics and innovation performance in EMFs?

·        
What really makes a culture innovative, and how can a culture be actually
shaped towards EMFs’ innovation when we consider that every culture has its own
strengths and weaknesses for innovation?

·        
How can EMFs use persistent cross-cultural differences for innovation?

·        
Does national cultural diversity experienced by EMFs increase the match
between expectations and products delivered to customers of global markets? Who
particularly enhances the effects of the cross-cultural diversity on such
marketing innovations?

·        
When cultural diversity drives EMFs’ innovation?

·        
What cultural challenges are faced by EMFs in developing their innovation
capabilities?

·        
What is the potential role of cultural diversity of top management team
(TMT), employees or institutional investors within EMFs in shaping their
innovation capabilities?

·        
What is the role of the process of recombination of various cultures
within EMFs and the dynamics of such process in explaining the heterogeneity of
innovation capabilities in EMFs?

·        
How do multiple levels of cultural differences or diversity within EMFs
affect driving or hindering in the building and development of innovation
capabilities?

·        
Do different forms of innovation capabilities shape the performance of
EMFs in the same way? What is the role of cultural dynamics in explaining such
potentially heterogeneous performance implications of different innovation
capabilities in EMFs? 

Special Issue 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, [log in to unmask])

 

Submission Process and
Deadlines

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, [log in to unmask])

Key Dates: 

Opening date: 1st of May,
2023

Closing date: 27th August, 2023

 

References

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
&amp; 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.

Munjal, S., Bhasin, N.,
Nandrajog, D., and Kundu, S. (2022), “Examining the evolution of emerging
market multinational enterprises’ competitive advantages: Evidence from
India”. Journal of Business Research, Vol. 145, pp. 732–744.

Narula, R. (2015), “The
viability of sustained growth by India’s MNEs: India’s dual economy and
constraints from location assets”. Management International Review,
Vol. 55, pp. 191–205.

Nguyen, T., Verreynne, M. L.,
Seen, J., and Torres de Oliveira, R. (2023), “Government support versus
international knowledge: Investigating innovations from emerging-market small
and medium enterprises”. Journal of Business Research, Vol. 154,
113305.

Peng, X., Fang,
K., and Lockett, M. (2021), “From focus to ambidexterity: The
choice of catch-up strategy for EMNEs”. Cross Cultural &amp; Strategic
Management, Vol. 28 No. 2, pp. 265–285.

Plechero, M., and Chaminade,
C. (2013), “The influence of micro-characteristics in different modes of
globalization of innovation: A comparative study of Indian (Pune) and
Chinese (Beijing) firms”. Industry and Innovation, Vol. 20 No. 7,
pp. 661–682.

Schanz, C., Hüsig, S.,
Dowling, M., and Gerybadze, A. (2011), “Low cost–high tech innovations for
China: Why setting up a separate R&amp;D unit is not always the best approach”.
R&amp;D Management, Vol. 41 No. 3, pp. 307–317.

Stahl, G., and Tung, R.
(2015), “Towards a more balanced treatment of culture in international business
studies: The need for positive cross-cultural scholarship”. Journal of
International Business Studies, Vol. 46 No. 4, 391–414.

Tseng, C. Y. (2009),
“Technological innovation and knowledge network in Asia: Evidence from
comparison of information and communication technologies among six
countries”. Technological Forecasting and Social Change, Vol. 76
No. 5, pp. 654–663.

Yu, J., Malerba, F., Adams,
P., and Zhang, Y. (2017), “Related yet diverging sectoral systems:
Telecommunications equipment and semiconductors in China”. Industry and
Innovation, Vol. 24 No. 2, pp. 190–212.

 

Special Issue Editors

Byung Il Park is
a Professor in International Business at the College of Business, Hankuk
University of Foreign Studies (South Korea). His research focuses on
emerging-market MNEs, MNE strategy, and the corporate social responsibility of
MNEs and MNE corruptions. He has published more than 50 papers in academic
journals, such as the Journal of World Business, Journal of
International Management, Management International Review, International
Business Review, International Marketing Review, Corporate Governance: An International
Review, International Small Business Journal, Journal of Business
Research and Asia Pacific Journal of Management. He is
Consulting Editor of Entrepreneurial Business and Economics Review and
serves as an Editorial Advisory Board Member for International Business
Review. In addition, he has dealt with or has been handling special issues,
for example, for Journal of World Business, Journal of Business
Research, International Marketing Review, Management Decision, Thunderbird
International Business Review, and Management and Organization
Review.

 

Shufeng (Simon) Xiao is
currently an Associate Professor of International Business at the Division
of Business Administration, Sookmyung Women's University, Seoul,
Korea. He is currently serving as Editor-in-Chief for International
Journal of Multinational Corporation Strategy. His primary teaching
and research interests lie in the rise of emerging multinational enterprises,
institutional theory in strategic management, entrepreneurship and innovation,
and foreign subsidiary management in emerging markets, with a particular focus
on China and India. His recent research interests center on international
business in the digital economy, with a focus on technology innovation within
and between platform ecosystems. His research has appeared in the Journal
of Business Research, Journal of International Management, International
Business Review, Management International Review, International Journal of
Human Resource Management, Asian Business &amp; Management, Business Research
Quarterly, Thunderbird International Business Review, and other major
journals.

 

Yangyan (Peter) Shi is a
faculty member of Macquarie Business School in Macquarie University. His
research focuses on operations and supply chain management. He has published in
such journals as the International Journal of Operations and Production
Management, International Journal of Production Economics, Supply Chain
Management: An International Journal, Production, Planning &amp; Control,
International Journal of Production Research, Annals of Operations Research,
International Journal of Physical Distribution and Logistics Management,
International Journal of Logistics Management, etc.

 

Zaheer Khan is a
Professor in Strategy and International Business at the University of Aberdeen,
UK. His research focuses on global technology management, international
alliances and internationalization of firms from emerging markets. He is a
Fellow of the Academy of Social Sciences. His work has appeared in leading
journals such as the Journal of International Business, Journal
of World Business, Global Strategy Journal, Management
International Review, International Business Review, Journal
of Organizational Behavior, Human Resource Management, British
Journal of Management, and Human Relations, among others. He is
an Associate Editor of Critical Perspectives on International Business,
and sits on the editorial board of British Journal of Management,
Journal of World Business, Management International Review, Multinational
Business Review, Journal of Knowledge Management, and International
Studies of Management and Organization. He has co-edited special
issues of International Business Review, Management
International Review, Applied Psychology: An international Review, Critical
Perspectives on International Business, Journal of International
Management, and International Studies of Management and
Organization. 



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