Abstract
This study reviews research from 1989 through 2019 on whether and how multinational enterprises (MNEs) augment their innovation capabilities throughout the entire internationalization process. To identify the current state of knowledge of this research, we review the literature using bibliometric and qualitative content analyses covering leading journals. We categorize existing studies into three key stages: (1) preinternationalization stage, (2) internationalization entry stage, and (3) internationalization operation stage. Further, we review how different internationalization strategies in the internationalization process, country institutions, and MNE characteristics jointly influence MNEs’ innovation behaviors and innovation outcomes. Finally, we highlight key questions and challenges in the extant literature and provide suggestions for future research to advance the developments of this domain, including (1) deepening discussions on international diversity and innovation, (2) emphasizing the impact of MNEs’ network attribute and dual embeddedness on innovation, and (3) extending the role of institutions in MNEs’ innovation.
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