Abstract

This study employs the resource-based view and the organizational learning perspective to understand how cost leadership and differentiation strategies influence on export performance and the distinctive roles of innovation capabilities on these links between international product strategies and export performance relatively. Using survey data from 216 Korean exporting firms, the findings indicate that cost leadership and differentiation strategies enhance export performance. Moreover, while exploitative innovation capability strengthens the relationship between cost leadership strategy and export performance, exploratory innovation capability enhances the link between differentiation strategy and export performance. This study suggests theoretical background for strategic fits between international product strategy and innovation capability to enhance export performance. Furthermore, the findings underscore needs for managers to invest in a certain type of international product strategy to ensure the development of innovation capability differently.

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