Abstract
The innovation performance of modern firms is increasingly determined by their ability to search and absorb external knowledge. However, after a certain threshold firms “oversearch” their environment and innovation performance declines. In this paper, we argue that prior literature has largely ignored the institutional context that provides or denies access to external knowledge at the country level. Combining institutional and knowledge search theory, we suggest that the market orientation of the institutional environment and the magnitude of institutional change influence when firms begin to experience the negative performance effects of oversearch. Based on a comprehensive sample of almost 8,000 firms from ten European countries, we find that institutions matter considerably for firms’ search activity. Higher market orientation of institutions increases the effectiveness of firms’ search for external knowledge while higher magnitudes of institutional change decrease it. Our results provide important insights for management on how to adapt search strategies to the institutional
context.
context.
Original language | English |
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Title of host publication | Proceedings of the 55th Annual Meeting of the Academy of International Business |
Editors | Patricia McDougall-Covin, Tunga Kiyak |
Place of Publication | East Lansing, MI |
Publisher | Academy of International Business |
Publication date | 2013 |
Pages | 168-169 |
Publication status | Published - 2013 |
Event | AIB 2013 Annual Meeting : Bridging the Divide: Linking IB to Complementary Disciplines and Practice - Sabancı University, Koç University, and Özyeğin University, Istanbul, Turkey Duration: 3 Jul 2013 → 6 Jul 2013 Conference number: 55 http://aib.msu.edu/events/2013/ |
Conference
Conference | AIB 2013 Annual Meeting |
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Number | 55 |
Location | Sabancı University, Koç University, and Özyeğin University |
Country/Territory | Turkey |
City | Istanbul |
Period | 03/07/2013 → 06/07/2013 |
Internet address |
Series | Academy of International Business. Annual Meeting. Proceedings |
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Volume | 55 |
ISSN | 2078-4430 |