Dynamic Innovation Capabilities and their Impact on Export Performance in Times of Economic Crisis

Abstract

Purpose – To determine the mediator role of innovative dynamic capabilities in performance in the internationalisation strategy of firms during periods of economic crisis. Theoretical framework – We base our study on the Theory of Dynamic Capabilities, as a response to the environment produced by an economic crisis. Two firm models are analysed in accordance with their internationalisation strategy: born-global and gradual internationalisation firms. Design/methodology/approach – We propose two hypotheses which are tested with a sample of 145 Spanish exporting firms. We use partial least squares structural equations modelling (PLS-SEM) and partial least squares multigroup analysis (PLS-MGA) to compare the results between born-global and gradual internationalisation firms. Findings – Firstly, innovation capability is necessary for entering new markets to lead to improvements in export performance. Secondly, there are significant differences between born-global and gradual internationalisation firms. Practical & social implications of research – The analysis makes management contributions for improving the use of skills and resources in firms in periods of profound variations of the environment, indicating for managers the importance of advancing in a process of creation and culture of dynamic capabilities. Originality/value – The study makes contributions regarding the role of innovative dynamic capability as an enhancer of international results in periods of economic crisis. It also contributes a novel form of capturing the dynamic character of innovation capability.