Investigating the Impact of International Markets and New Digital Technologies on Business Innovation in Emerging Markets

Léo-Paul Dana,Aidin Salamzadeh,Samira Mortazavi,Morteza Hadizadeh

doi:10.3390/su14020983

Abstract

International markets and digital technologies are considered among the factors affecting business innovation. The emergence and deployment of digital technologies in emerging markets increase the innovation potential in businesses. Companies with an entrepreneurial orientation also strengthen their innovation capabilities. The present study aimed to investigate the impact of international markets and new digital technologies on business innovation in emerging markets, and to estimate the mediating effect of entrepreneurial orientation on this relationship. The present research was applied research in terms of aim and descriptive survey in terms of data collection method and quantitative in terms of the type of collected data. A standard questionnaire was to collect data. The study’s statistical population consisted of all companies providing business services in Tehran, Iran. To analyse the data, the structural equation modelling method with partial least squares method and Smart PLS-3 Software was used. The results revealed that international markets and digital technologies are positively associated with innovation. They also revealed that when a company’s entrepreneurial orientation increases, the digital technologies and international markets will be more involved in mutual relationships.

Highlights

Because emerging markets are not separated from international markets, the present study examines the association between EM and international market (IM) based on the literature review, in which frugal innovation (FI) is defined with a higher concentration
This research examined how emerging market companies deal with institutional, technology, and market constraints in emerging markets and showed how these constraints lead to frugal innovation
We aimed to identify the business innovation process regarding the high importance of sustainability and survival of the business and its vital role in the economic development of emerging markets

Summary

Introduction

The globalisation of international markets has affected businesses over the last decades. Internationalisation is the process by which a company moves from operating in the domestic market to international markets. The development of digital technologies in businesses affects the expansion of international markets. Studies on emerging market companies have emphasised the importance of using external knowledge resources to strengthen their internal innovation processes [3]. The importance of innovation in meeting the specific needs of emerging markets is a major source of growth for companies [4]. Some studies have analysed the possibility of maximising the desired impact of a business model, while reducing the risks associated with technology development, so as to gain a deeper understanding of the factors determining sustainable and frugal innovations [5]

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Conclusion