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Combining efficiency and innovation to enhance performance: Evidence from firms in emerging economies

Tian, X., Lo, V.L. and Zhai, X. (2021) Combining efficiency and innovation to enhance performance: Evidence from firms in emerging economies. Journal of Management & Organization, 27 (2). pp. 295-311.

Link to Published Version: https://doi.org/10.1017/jmo.2018.75
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Abstract

This paper extends the resource-capability-based view in strategic management and discusses the capabilities for the firms to stay competitive in emerging economies. Faced with low levels of efficiency, technology, and skills, firms in emerging economies need to implement best management practices to overcome operational inefficiency while engage in innovation processes to address new opportunities. They have to develop the capabilities to enhance efficiency, the capabilities to undertake innovation, and the synthesis capabilities to combine the two to keep rivals at bay. The paper tests hypotheses against a data set of more than 20,000 firms from 36 emerging economies provided by the World Bank in 2012–2015 and finds strong evidence to support the arguments. The paper finds that the three sets of capabilities are positively related to productivity and, through it, financial performance.

Item Type: Journal Article
Murdoch Affiliation(s): College of Arts, Business, Law and Social Sciences
Publisher: Cambridge University Press
Copyright: © 2021 Cambridge University Press and Australian and New Zealand Academy of Management
URI: http://researchrepository.murdoch.edu.au/id/eprint/61752
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