The Nexus between Innovation and Internationalization. Evidence from a micro-level Survey of the Romanian ICT Business Sector

Abstract

The aim of this paper is to explore the nexus between innovation and internationalization (the “self-selection hypothesis”) in the behavior of business organizations operating in the ICT sector. The data was gathered from a survey of national and multinational companies in the Romanian ICT sector. The results show a significant positive influence between innovation and internationalization, although this relationship is more robust for multinational companies, due to the history and strategies of parent companies. The findings have major implications for literature, macroeconomic management, and business practice.