Beating competitors to international markets

The value of geographically balanced networks for innovation

P.C. Patel (Corresponding Author), S.A. Fernhaber, P.P. McDougall-Covin, Robert van der Have

Research output: Contribution to journalArticleScientificpeer-review

42 Citations (Scopus)

Abstract

Being able to launch new products internationally is critical for technology-based ventures to recoup the high costs of R&D and to exploit their innovations fully. Despite the widely recognized importance of networks within the innovation development process, there appear to be contrasting viewpoints as to whether local or foreign network partners contribute more in the race to internationalize. Drawing on the theoretical underpinnings of comparative advantage, we propose and empirically confirm that ventures pursuing a balance of local and foreign network connections for the development of an innovation are able to bring the product more rapidly into the international marketplace. Furthermore, both innovation complexity and industry clockspeed heighten the importance of geographic network balance to the speed of product internationalization.
Original languageEnglish
Pages (from-to)691-711
JournalStrategic Management Journal
Volume35
Issue number5
DOIs
Publication statusPublished - 2014
MoE publication typeA1 Journal article-refereed

Fingerprint

Competitors
Innovation
International markets
Venture
Internationalization
Development process
Industry
Costs
Comparative advantage
New products

Keywords

  • internationalisation
  • ventures
  • innovation
  • network balance
  • clockspeed

Cite this

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title = "Beating competitors to international markets: The value of geographically balanced networks for innovation",
abstract = "Being able to launch new products internationally is critical for technology-based ventures to recoup the high costs of R&D and to exploit their innovations fully. Despite the widely recognized importance of networks within the innovation development process, there appear to be contrasting viewpoints as to whether local or foreign network partners contribute more in the race to internationalize. Drawing on the theoretical underpinnings of comparative advantage, we propose and empirically confirm that ventures pursuing a balance of local and foreign network connections for the development of an innovation are able to bring the product more rapidly into the international marketplace. Furthermore, both innovation complexity and industry clockspeed heighten the importance of geographic network balance to the speed of product internationalization.",
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Beating competitors to international markets : The value of geographically balanced networks for innovation. / Patel, P.C. (Corresponding Author); Fernhaber, S.A.; McDougall-Covin, P.P.; van der Have, Robert.

In: Strategic Management Journal, Vol. 35, No. 5, 2014, p. 691-711.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Beating competitors to international markets

T2 - The value of geographically balanced networks for innovation

AU - Patel, P.C.

AU - Fernhaber, S.A.

AU - McDougall-Covin, P.P.

AU - van der Have, Robert

N1 - Project code: 35827

PY - 2014

Y1 - 2014

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AB - Being able to launch new products internationally is critical for technology-based ventures to recoup the high costs of R&D and to exploit their innovations fully. Despite the widely recognized importance of networks within the innovation development process, there appear to be contrasting viewpoints as to whether local or foreign network partners contribute more in the race to internationalize. Drawing on the theoretical underpinnings of comparative advantage, we propose and empirically confirm that ventures pursuing a balance of local and foreign network connections for the development of an innovation are able to bring the product more rapidly into the international marketplace. Furthermore, both innovation complexity and industry clockspeed heighten the importance of geographic network balance to the speed of product internationalization.

KW - internationalisation

KW - ventures

KW - innovation

KW - network balance

KW - clockspeed

U2 - 10.1002/smj.2114

DO - 10.1002/smj.2114

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VL - 35

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JO - Strategic Management Journal

JF - Strategic Management Journal

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