Configurational framework of learning conduits used by emerging economy firms to improve their innovation performance

Abstract

The past decade has seen a dramatic increase in innovation coming from emerging economy firms. In response to this popular phenomenon, scholars are examining many learning conduits used by these firms to improve their innovation performance. The various learning conduits used by these firms include technology licensing, government R&D support, university-firm linkages, business groups, government affiliation, outward FDI, international collaborations, inward FDI, outsourcing, exporting, and importing. Building on a systematic review of 115 papers on this topic, we find this literature to be unstructured, with no organizing framework. To help researchers take stock and make advancements, we use configurational theorizing to develop a framework that helps understand when and why these emerging economy firms tend to use the different learning conduits. Specifically, we propose that the choice of learning conduits is often driven by two key factors: the relative level of institutional formality of the emerging economy and the relative level of traditional ownership advantages of these firms. Building on these two dimensions, we classify emerging economy firms into four configurations: social network focused firms, laggard firms, leader firms, and cutting-edge firms. We generate new insights based on our framework and overview of the existing studies, identify gaps in the literature, and make recommendations about how to extend this growing stream of research.