Deciphering Innovation Dynamics in Emerging Markets

Abstract

Innovation is the process of exploration, assimilation, and transformation of new and old knowledge for generating new unique value-adding products and processes, leading to superior firm performance through value creation and appropriation by the innovating firm. While extant innovation studies have focused on the impact of innovation on either value creation or value appropriation, studies analyzing both aspects together are under-explored. Establishing a linkage between value creation and appropriation requires understanding the various stimulus which catalyze the innovation process in a business firm. The studies limited themselves to either at country level, industry level, or firm level. This study focuses to bridge this gap by exploring the impact of innovation on both value creation and value appropriation, and also understand how the three levels influence each other's innovation output.