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Journal of the Academy of Marketing Science
Published in: Journal of the Academy of Marketing Science 2/2015

01-03-2015 | Original Empirical Research

The role of the market sub-system and the socio-technical sub-system in innovation and firm performance: a dynamic capabilities approach

Authors: Jay Weerawardena, Gillian Sullivan Mort, Sandeep Salunke, Gary Knight, Peter W. Liesch

Published in: Journal of the Academy of Marketing Science | Issue 2/2015

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Abstract

Organizational learning has been studied as a key factor in firm performance and internationalization. Moving beyond the past emphasis on market learning, we develop a more complete explanation of learning, its relationship to innovation, and their joint effect on early internationalization. We theorize that, driven by the founders’ international vision, early internationalizing firms employ a dual subsystem of dynamic capabilities: a market subsystem consisting of market-focused learning capability and marketing capability, and a socio-technical subsystem comprised of network learning capability and internally focused learning capability. We argue that innovation mediates the proposed relationship between the dynamic capability structure and early internationalization. We conduct case studies to develop the conceptual framework and test it in a field survey of early internationalizing firms from Australia and the United States. Our findings indicate a complex interplay of capabilities driving innovation and early internationalization. We provide theoretical and practical implications and offer insights for future research.
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Metadata
Title
The role of the market sub-system and the socio-technical sub-system in innovation and firm performance: a dynamic capabilities approach
Authors
Jay Weerawardena
Gillian Sullivan Mort
Sandeep Salunke
Gary Knight
Peter W. Liesch
Publication date
01-03-2015
Publisher
Springer US
Published in
Journal of the Academy of Marketing Science / Issue 2/2015
Print ISSN: 0092-0703
Electronic ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-014-0382-9

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