Volume 4, Issue 2, April 2016, Page: 17-27
Impact of Internal Capabilities, International Competitive Pressure and R&D Cooperation of Firms on Their Innovation Performance: Evidence from Madagascar
Ida Celine Estelle Andriamihavana, School of Management, Shanghai University, Shanghai, China
Received: Mar. 24, 2016;       Published: Mar. 25, 2016
DOI: 10.11648/j.sjbm.20160402.11      View  4392      Downloads  125
On the basis of a sample of 117 firms, this study aims at investigating the effect of firms’ internal capabilities consisted of Absorptive capacity, R&D capability, Production capability and one external factor having an influence on firms such as International competitive pressure, and also R&D Cooperation on their innovation performance with evidence from Madagascar. To test the three hypotheses formulated in this paper, a multiple linear regression is applied, with the innovation performance as the dependent variable. Our results reveal that while R&D capability and R&D Cooperation affect positively firms’ innovation performance; Absorptive capacity, Production capability and International competitive pressure did not demonstrate any positive impact on it. Therefore, our findings highlight two major points in the context of developing countries’ firms to shape and reinforce their innovation performance: to conduct R&D activities and to engage in R&D Cooperation as means of strengthening their internal and external capabilities.
Internal Capabilities, Innovation Performance, R&D Cooperation, International Competitive Pressure
To cite this article
Ida Celine Estelle Andriamihavana, Impact of Internal Capabilities, International Competitive Pressure and R&D Cooperation of Firms on Their Innovation Performance: Evidence from Madagascar, Science Journal of Business and Management. Vol. 4, No. 2, 2016, pp. 17-27. doi: 10.11648/j.sjbm.20160402.11
Lichtenthaler, U., 2009. Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes. Academy of Management Journal 52 (4), 822–846.
Darai, D., Sacco, D., Schmutzler, A., 2010. Competition and innovation: an experimental investigation. Experimental Economics, 13: 439–460.
Boone, J., 2000. The Effects on Investments in Product and Process Innovation. The RAND Journal of Economics, Vol. 31, 549-569.
Lee. C-Y., 2009. Competition favors the prepared firm: Firms’ R&D responses to competitive market pressure. Science Direct. Research Policy 38, 861–870.
Becker, W., Peters, J., 2000. Technological opportunities, absorptive capacities and innovation. Paper presented at the Eighth International Joseph A. Schumpeter Society Conference, Centre for Research in Innovation and Competition (CRIC), Manchester.
Hagedoorn, J., 1993. Understanding the rationale of strategic technology partnering: Inter-organizational modes of cooperation and sectoral differences, Strategic Management Journal 14, 371-385.
Miotti, L., Schwald, F., 2003. Co-operative R&D: Why and with whom? An integrated framework of analysis. Research Policy 32, 1481-1499.
Bogliacino, F., Perani G., Pianta M. & Supino S. (2009). “Innovation in Developing Countries. The Evidence from Innovation Surveys”, paper prepared for the FIRB conference Research and Entrepreneurship in the Knowledge-based Economy, Milano: Universita L. Bocconi.
UNESCO SCIENCE REPORT, 2010. The current status of science around the world.
Lundvall, B. A., 2007. Innovation System Research: Where it came from and where it might go. CAS Seminar, Oslo.
Szogs, A., Chaminade, C., Azatyan, R., 2008. Building absorptive capacity in less developed countries: The case of Tanzania. CIRCLE. Lund University. ISSN 1654-3149.
Adler, J. H., 1965. Absorptive Capacity: The Concept and Its Determinants. Brookings Institution, Washington.
Cohen, W. M., Levinthal, D. A., 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35 (1), 128–152.
Murovec, N., Prodan, I., 2009. Absorptive capacity, its determinants, and influence on innovation output: cross-cultural validation of the structural model. Technovation 29, 859–872.
Matusik SF, Heeley M. B. (2005). Absorptive capacity in the software industry: identifying dimensions that affect knowledge and knowledge creation activities. Journal of Management 31, 549–572.
Camisón C., Forés, B., (2010). Knowledge absorptive capacity: New insights for its conceptualization and measurement. Journal of Business Research 63, 707–715.
Jiménez-Barrionuevon,M. M., Garcı ́a-Morales,V. J., MolinaL. M. (2011). Validation of an instrument to measure absorptive capacity. Technovation 31, 190–202.
Wu, A., Voss H. (2015). When does absorptive capacity matter for international performance of firms? Evidence from China. International business Review 24, 344-351.
Vinding, A. L., 2006. Absorptive capacity and innovative performance: a human capital approach. Economics of Innovation and New Technology 15, 507–517.
Escribano, A., Fosfuri, A., Tribo ́, J. A., 2009. Managing external knowledge flows: the moderating role of absorptive capacity. Research Gate, Research Policy 38 (1), 96–10.
Chen, Y-S., Lin M-J J., Chang C-H. (2009). The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management 38, 152-158.
Nerkar, A., Paruchuri, S., 2005. Evolution of R&D capabilities: The role of knowledge networks within a firm. Management Science 51, 771-785.
Zhao, Z., Anand, J., Mitchell, W., 2005. A Dual Networks Perspective on Inter-Organizational Transfer of R&D Capabilities: International Joint Ventures in the Chinese Automotive. Industry Journal of Management Studies 42: 1.
Paruchuri, S., Eisenman, M., 2012. Microfoundations of Firm R&D Capabilities: A Study of Inventor Networks in a Merger. Journal of Management Studies 49: 8.
Huq, M. M., 1999. Technological Capability Building in Low Income Developing Countries: Towards Understanding the Nature of the problem. Proceedings of the DSA Annual Conference, University of Bath, 11-14.
Celikel, A. T., 2009. Factors Affecting Research and Development (R&D) Collaboration of Multinational Enterprises (MNEs) and their Local Partner Firms: A Case Study of Turkish Automotive Industry. Graduate Schools of Social Sciences. Doctor of Philosophy in Contemporary Management. ISIK University.
Kogut, B., Zander, U., 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science 3.
Anuar, H. S., Zulhumadi, F., Udin, Z. M., 2011. Intellectual Property Rights Role in Moderating Internal and External R&D Relationship with Operational Performance: Chemical and Metallurgical Manufacturing Firms in Malaysia. Research Gate. Innovation Vision 2020: Sustainable growth, Entrepreneurship, and Economic Development.
Schumpeter, J. A. (1912/1934) English translation published in 1934. The theory of economic development. Cambridge, MA: Harvard University Press.
Helfat, C. 1997. Know-how and asset complementarity and dynamic capability accumulation: The case of R&D. Strategic Management Journal, 18(5).
Dutta, S., Narasimhan, OM., Raji, S., 2005. Conceptualizing and measuring capabilities: methodology and empirical application. Strategic Management Journal 26: 277–285.
Azoulay, N., Weinstein, O., 1999. Firms’ capabilities and organizational learning a critical survey of some literature. Fourth Framework Programme, European Commission.
Rejal, S. H., 2004b. Assessing the Significance of Production: a firm perspective and regional implications. DRUID 2005 PhD Seminar, Aarlborg, Denmark.
Fleury, A., Fleury, M. T., Borini, F. M., 2012. Is production the core competence for the internationalization of emerging country firms? INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS 140: 439–449.
Crepon, B., Duguet, E., Mairesse, J., 1998. “Research, Innovation and Productivity: An Econometric Analysis at the Firm Level”. NBER Working Paper 6696.
Nickel, S., 1996. Competition and Corporate Performance. Journal of Political Economy, Vol. 104, 724-746.
Piga, C. A., Vivarelli, M., 2004. Internal and external R&D: A sample Selection Approach. Oxford Bulletin of Economics and Statistics 66, 0305-9049.
Vives, X., 2008. Innovation and Competitive Pressure. The Journal of Industrial Economics, Vol. 56, 419-469.
Beneito, P., Coscollá-Girona, P., Rochina-Barrachina, M. E., Sanchis-Llopis, A., 2011. Competitive pressure determinants and innovation at the firm level. Journal of Industrial Economics 63.
Duchek, S., 2013. Capturing Absorptive Capacity: A Critical Review and Future Prospects. Schmalenbach Business Review, Vol. 65, 312-329.
Nickel, S., Nicolitsas, D., Dryden, N., 1997. What makes firms perform well? European Economic Review 41, 783-796.
Veugelers, R. and B. Cassiman, 2005, R&D Cooperation between Firms and Universities, some empirical evidence from Belgian Manufacturing. International Journal of Industrial Organisation, 23, 5-6, 355-379.
Mowery, D. C., Oxley, J. E., Silverman, B. S., 1996. Strategic alliances and interfirm knowledge transfer. Strategic Management Journal 17 (Special Issue), 77–91.
Belderbos, R., Carree, M., Lokshin, B., 2004. Cooperative R&D and firm performance. Research Policy 33, 1477–1492.
Aschhoff, B., Schmidt, T., 2008. Empirical Evidence on the Success of R&D Cooperation—Happy Together? Review of Industrial Organization 33, 41-62.
OECD, 2014. OECD at glance 2014, OECD INDICATORS.
Veugelers, R., 1997. Internal R&D expenditures and external technology sourcing. Research Policy 26, 303–315.
Schaan, S., Anderson, F., 2001. Innovation in Canadian Manufacturing: National Estimates. Statistics Canada, Ottawa.
Becker, W., Dietz, J., 2004. R&D Cooperation and Innovation Activities of Firms—Evidence for the German Manufacturing Industry. Research Policy, Vol. 33, 209-223.
Mention, A. L., 2011.Co-operation and co-opetition as open innovation practices in the service sector: Which influence on innovation novelty? Technovation 31, 44–53.
Hinkkanen, J. J., Jääskeläinen, M., Väätänen, J., 2013. The role of competitive pressure in R&D cooperation: evidence from immature markets. International Journal of Business Innovation and research, Vol. 7.
Zeng, S. X., Xie, X. M., Tam, C. M., 2010. Relationship between cooperation networks and innovation performance of SMEs. Technovation 30, 181–194.
Kotabe, M., Srinivasan, S. S., Aulakh, P. S., 2002. Multinationality and firm performance. Journal of International Business Studies 33, 79-97.
Zou, S., Stan, S., 1998. The determinants of export performance: a review of the empirical literature between 1987 and 1997. International Marketing Review, Vol. 15, 333-356.
Rasiah, R., Jaabi, S. A. K., 2014. Assessing the importance of fish exports in the economies of Uganda and the Gambia: A supply-side constraint analysis. Business Management and Economics 2, 172-185.
Tang, J., 2006. Competition and innovation behaviour. Science Direct. Research Policy 35, 68–82.
Nunnally, J. (1978). Psychometric Theory (2nd Ed.). New York: McGraw-Hill.
Daghfous, A., 2004. Absorptive capacity and the implementation of knowledge- intensive best practices. S. A. M. Advanced Management Journal 69 (2), 21–27.
Aubert, J. E., 2005. Promoting innovation in developing countries: a conceptual framework. World Bank Policy Research Working Paper 3554, April.
Terrio, M. (2014). Examining Reverse Innovation and Collaboration: A Case Study in the context of Uganda. International Business Management (IDBM). Master’s thesis.
Prahalad, C. K., Hamel, G., 1990. The core competence of the corporation. Harvard Business Review 68, 79–91.
Teece, D. J., 1981. The market for know-how and the efficient international transfer of technology. Annals of the Academy of Political and Social Science 458, 81–86.
Jegede O. O., Aderemi H. O., Jesuleye O. A. and Siyanbola W.O, 2012. Status of Technological Capacity Building in the Indigenous Oilfield Servicing Firms in Nigeria vis-a-vis Innovation Capability. Greener Journal of Science Engineering and Technological Research 2, 011-016.
Loury, G. C., 1979. Market Structure and Innovation. The Quarterly Journal of Economics, Vol. 93, 395-410.
Browse journals by subject