Going Global with Innovations from Emerging Economies: Investment in Customer Support Capabilities Pays Off

Abstract

Globalization of innovation calls for entrepreneurial new ventures from emerging economies to develop customer-focused dynamic capabilities. The authors argue that firms with proprietary technology and a strategic intent to internationalize invest in international customer support capabilities to satisfy the demands of their most important international customers. Using a unique sample of 173 international new ventures from China and India, the authors show that such investments are associated with improved organizational learning and performance. The results suggest that globalization pays off when entrepreneurial firms from emerging economies invest in ongoing support of their most important international customers.