Innovation in Emerging Markets: The Role of Management Consulting Firms

Journal of International Management

Volumn 20, Issue 4, 2014, Pages 390-405

  Back, Yujin ^a   Praveen Parboteeah, K ^b   Nam, Dae Il ^a  

^a Korea University   (South Korea)

^b UNIVERSITY OF WISCONSIN WHITEWATER   (United States)

Author keywords

Emerging economy; Innovation input output; Institutional void; Management consulting firm

Indexed keywords

EID: 84912562128     PISSN: 10754253     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.intman.2014.07.001     Document Type: Article

References (135)

1. Agarwal S. Influence of formalization on role stress, organizational commitment, and work alienation of salespersons: a cross-national comparative study. J. Int. Bus. Stud. 1993, 4:713-739.
2. Aghion P., Bloom N., Blundell R., Griffith R., Howitt P. Competition and innovation: an inverted-U relationship. Q. J. Econ. 2005, 120(2):701-728.
3. Andreas W., Frida P., Michael M., Stephanie B. The cultural embeddedness of management advisory services. Proceedings of 2010 Academy of Management Annual Conference 2010.
4. Aranda D.A., Molina-Fernández L.M. Determinants of innovation through a knowledge-based theory lens. Ind. Manag. Data Syst. 2002, 102(5):289-296.
5. Artés J., 2007. The effect of labor market rigidities on firms' R&D behavior. Unpublished doctoral dissertation, Department of Economics, Universidad Complutense de Madrid.
6. Ayyagari M., Demirgüç-Kunt A., Maksimovic V. Firm innovation in emerging markets: the role of finance, governance, and competition. J. Financ. Quant. Anal. 2011, 46(6):1545-1580.
7. Baysinger B.D., Kosnik R.D., Turk T.A. Effects of board and ownership structure on corporate R&D strategy. Acad. Manag. J. 1991, 34(1):205-214.
8. Becker G.S. Human Capital: A Theoretical and Empirical Analysis 1964, University of Chicago Press, Chicago, IL.
9. Bessant J., Rush H. Building bridges for innovation: the role of consultants in technology transfer. Res. Policy 1995, 24:97-114.
10. Bianchi C. Internationalisation of emerging market firms: an exploratory study of Chilean companies. Int. J. Emerg. Mark. 2014, 9(1):54-78.
11. Bloom N., Van Reenen J. New approaches to surveying organizations. Am. Econ. Rev. 2010, 100(2):105-109.
12. Brock D.M., Leblebici H., Muzio D. Understanding professionals and their workplaces: the mission of the Journal of Professions and Organization. J. Prof. Organ. 2014, 1(1):1-15.
13. Canback S. The logic of management consulting. J. Manag. Consult. 1998, 10(2):3-11.
14. Chang S.J., Chung C.N., Mahmood I.P. When and how does group affiliation promote firm innovation? A tale of two emerging economies. Organ. Sci. 2006, 17(5):637-656.
15. Choi J., Park S.W., Yoo S.S. The value of outside directors: evidence from corporate governance reform in Korea. J. Financ. Quant. Anal. 2007, 42:941-962.
16. Claessens F., Lang L.H.P. The benefits and costs of group affiliation. Emerg. Mark. Rev. 2006, 7:1-26.
17. Classen N., Anita V.G., Yannick B., Martin C. Accessing resources from innovation partners: the search breadth of family SMEs. J. Small Bus. Manag. 2012, 50(2):191-215.
18. Cooper A.C., Woo C.Y., Dunkelberg W.C. Entrepreneurs' perceived chances for success. J. Bus. Ventur. 1988, 3:97-109.
19. Coviello N.E. The network dynamics of international new ventures. J. Int. Bus. Stud. 2006, 37(5):713-731.
20. Coviello N.E., Martin K.A.M. Internationalization of service SMEs: an integrated perspective from the engineering consulting sector. J. Int. Mark. 1999, 7(4):42-66.
21. Creplet F., Dupouet O., Kern F., Mehmanpazir B., Munier F. Consultants and experts in management consulting firms. Res. Policy 2001, 30:1517-1535.
22. Cuervo-Cazurra A., Annique Un C. Why some firms never invest in formal R&D. Strateg. Manag. J. 2010, 31(7):759-779.
23. Cyert R.M., March J.G. A Behavioral Theory of the Firm 1963, Prentice-Hall, Englewood Cliffs, NJ.
24. Czerniawska F. What sets excellent consulting apart?. Consult. Manag. 2004, 15(3):47-49.
25. Dawar N., Frost T. Competing with giants: survival strategies for local companies in emerging markets. Harv. Bus. Rev. 1999, 77(2):119-129.
26. De Beule F., Elia S., Piscitello L. Entry and access to competencies abroad: emerging market firms versus advanced market firms. J. Int. Manag. 2014, 20:137-152.
27. Doz Y., Santos J., Williamson P. From Global to Metanational: How Companies Win in the Knowledge Economy 2001, Harvard Business School Press, Boston, MA.
28. Dyer J.H., Nobeoka K. Creating and managing a high-performance knowledge-sharing network: the Toyota case. Strateg. Manag. J. 2000, 21(3):345-367.
29. Dyer J.H., Singh H. The relational view: cooperative strategy and sources of interorganizational competitive advantage. Acad. Manag. Rev. 1998, 23(4):660-679.
30. Ejenãs M., Werr A. Management internal consulting units: challenges and practices. SAM Adv. Manag. J. 2011, 28(2):14-23.
31. Eklund J.E., Wiberg D. R&D and the persistence of profits. J. Manag.Econ. 2008, 6(2):40-54.
32. Empson L. Introduction: knowledge management in professional service firms. Hum. Relat. 2001, 54:811-817.
33. Farrell J., Saloner G. Installed base and compatibility: innovation, product preannouncements, and predation. Am. Econ. Rev. 2001, 76(5):940-955.
34. Fong E.A. Relative CEO underpayment and CEO behavior towards R&D spending. J. Manag. Stud. 2010, 47(6):1095-1122.
35. Freeman S., Sandwell M. Professional service firms entering emerging markets: the role of network relationships. J. Serv. Mark. 2008, 22(3):198-212.
36. Fu X., Pietrobelli C., Soete L. The role of foreign technology and indigenous innovation in the emerging economies: technological change and catching-up. World Dev. 2011, 39(7):1204-1212.
37. Furusten S. Commercialized professionalism on the field of management consulting. J. Organ. Chang. Manag. 2012, 26(2):265-285.
38. Futusten S., Werr A. Dealing with Confidence: The Construction of Need and Trust in Management Advisory Services 2005, CBS Press, Copenhagen.
39. George G., Prabhu G.N. Developmental financial institutions as technology policy instruments: implications for innovation and entrepreneurship in emerging economies. Res. Policy 2003, 32:89-108.
40. Gibson M. Avoiding intervention pitfalls in international consulting. J. Manag. Consult. 1998, 10(2):59-65.
41. Gilbert R. Looking for Mr. Schumpeter: where are we in the competition-innovation debate?. Innov. Policy Econ. 2006, 6:159-215.
42. Gorodnichenko Y., Svejnar J., Terrell K. Globalization and innovation in emerging markets. Am. Econ. J. 2008, 2(2):194-226.
43. Graves S.B. Institutional ownership and corporate R&D in the computer industry. Acad. Manag. J. 1988, 31(2):417-428.
44. Greenwood R., Suddaby R., McDougald M. Introduction. Res. Sociol. Organ.Prof. Serv. 2006, 24:1-16.
45. Greiner L.E., Metzger R.O. Consulting to Management 1983, Prentice-Hall, Englewood Cliffs, NJ.
46. Greve H. A behavioral theory of R&D expenditures and innovation: evidence from shipbuilding. Acad. Manag. J. 2003, 46:685-702.
47. Gulati R., Singh H. The architecture of cooperation: managing coordination costs and appropriation concerns in strategic alliances. Adm. Sci. Q. 1998, 43(4):781-814.
48. Hage J., Dewar R. Elite values versus organizational structure in predicting innovation. Adm. Sci. Q. 1973, 18(3):279-290.
49. Hall J.A., Liedtka S.L. Financial performance, CEO compensation, and large-scale information technology outsourcing decisions. J. Manag. Inf. Syst. 2005, 22(1):193-221.
50. Hansen J.A. Innovation, firm size, and firm age. Small Bus. Econ. 1992, 4:37-44.
51. Harman H.H. Modern Factor Analysis 1976, University of Chicago Press, Chicago, IL.
52. Helfat C.E. Evolutionary trajectories in petroleum firm R&D. Manag. Sci. 1994, 40(12):1720-1747.
53. Henisz W.J., Levitt R.E. Regulative, normative, and cognitive institutional supports for relational contracting in infrastructure projects. Collaboratory for Research on Global Projects, Working paper 2010.
54. Hermelo F.D., Vassolo R. Institutional development and hypercompetition in emerging economies. Strateg. Manag. J. 2010, 31(13):1457-1473.
55. Hertog P.D. Knowledge-intensive business services as co-producers of innovation. Int. J. Innov. Manag. 2000, 4(4):491-528.
56. Hinings C.R., Leblebici H. Introduction: knowledge and professional organizations. Organ. Stud. 2003, 24:827-830.
57. Hitt M.A., Ireland R.D. Corporate distinctive competence, strategy, industry and performance. Strateg. Manag. J. 1985, 6(3):273-293.
58. Hitt M.A., Bierman L., Shimizu K., Kochhar R. Direct and moderating effects of human capital on strategy and performance in professional service firms: a resource-based perspective. Acad. Manag. J. 2001, 44(1):13-28.
59. Hoecht A., Trott P. Innovation risks of strategic outsourcing. Technovation 2006, 26:672-681.
60. Hoegl M., Parboteeah K.P., Munson C. Team-level antecedents of individuals' knowledge networks. Decis. Sci. 2003, 34(4):741-770.
61. Hult G.T., Hurley R.F., Knight G.A. Innovativeness: its antecedents on business performance. Ind. Mark. Manag. 2004, 33:429-438.
62. Jacobson N., Butterill D., Goering P. Consulting as a strategy for knowledge transfer. Milbank Q. 2005, 83(2):299-321.
63. Johnsen T.E., Phillips W., Caldwell N., Lewis M. Centrality of customer and supplier interaction in innovation. J. Bus. Res. 2006, 59:671-678.
64. Kamath R., Liker J. A second look at Japanese product development. Harv. Bus. Rev. 1994, 154-170.
65. Kanavos P., Vandoros S., Garcia-Gonzalez P. Benefits of global partnerships to facilitate access to medicines in developing countries: a multi-country analysis of patients and patient outcomes in GIPAP. Glob. Health 2009, 5(19):1-13.
66. Khanna T., Palepu K. Winning in Emerging Markets 2010, Harvard Business School Press, Boston, MA.
67. Khanna T., Rivkin J.W. Estimating the performance effects of business groups in emerging markets. Strateg. Manag. J. 2001, 43:45-74.
68. Khanna T., Yafeh Y. Business groups in emerging markets: paragons or parasites. J. Econ. Lit. 2007, 65:331-372.
69. Klein K.J., Sorra J.S. The challenge of innovation implementation. Acad. Manag. Rev. 1996, 21(4):1055-1080.
70. Kothari T., Kotabe M., Murphy P. Rules of the game for emerging market multinationals companies from China and India. J. Int. Manag. 2013, 19:276-299.
71. Kotov D. How changing investment climate impacts foreign investors' investment decision: evidence from FDI in Germany. Proceedings of the International Conference on Applied Economics 2008, 547-553.
72. Krishnan R., Jha S.K. Innovation strategies in emerging markets: what can we learn from Indian market leaders. J. Manag. 2011, 41(1):21-45.
73. Krueger F.N., Dickson P. How believing in ourselves increases risk taking: self-efficacy and perceptions of opportunity and threat. Decis. Sci. J. 1994, 25:385-400.
74. La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R.W. Investor protection and corporate governance. J. Financ. Econ. 1999, 58:3-27.
75. Lasagni A. How can external relationships enhance innovation in SMEs? New evidence for Europe. J. Small Bus. Manag. 2012, 50(2):310-339.
76. Levin R.C., Cohen W.M., Mowery D.C. R&D appropriability, opportunity, and market structure: new evidence on some Schumpeterian hypotheses. Am. Econ. Rev. 1985, 75(2):20-24.
77. Li Y., Guo H., Yi Y., Liu Y. Ownership concentration and product innovation in Chinese firms: the mediating role of learning orientation. Manag. Organ. Rev. 2010, 6(1):77-100.
78. Lin Z., Yang H., Arya B. Alliance partners and firm performance: resource complementarity and status association. Strateg. Manag. J. 2009, 30:921-940.
79. Liu K., Li J., Hesterly W., Cannella A. Top management team tenure and technological inventions at post-IPO biotechnology firms. J. Bus. Res. 2012, 65(9):1349-1356.
80. Love J.H., Roper S. Economists' perceptions versus managers' decision: an experiment in transaction cost analysis. Camb. J. Econ. 2005, 29(1):19-36.
81. Luo Y., Tung R.L. International expansion of emerging market enterprises: a springboard perspective. J. Int. Bus. Stud. 2007, 38:481-498.
82. Luo X., Chung C.N., Sobezak M. How do corporate governance model differences affect foreign direct investment in emerging economies?. J. Int. Bus. Stud. 2009, 40:444-467.
83. Mahmood I.P., Mitchell W. Two faces: effects of business groups on innovation in emerging economies. Manag. Sci. 2004, 50:1348-1365.
84. Makadok R. The four theories of profit and their joint effects. J. Manag. 2011, 37(5):1316-1334.
85. McKenna C.D. The World's Newest Profession: Management Consultancy in the Twentieth Century 2006, Cambridge University Press, New York.
86. Meyer K.E., Estrin S., Bhaumik S.K., Peng M.W. Institutions, resources, and entry strategies in emerging economies. Strateg. Manag. J. 2009, 30:61-80.
87. Miles I. Innovation in services. The Oxford Handbook of Innovation 2005, Oxford University Press, Oxford. J. Fagerberg, D.C. Mowery, R.R. Nelson (Eds.).
88. Mol M.J. Does being R&D intensive still discourage outsourcing? Evidence from Dutch manufacturing. Res. Policy 2005, 34:571-582.
89. Morck R., Wolfenzon D., Yeung B. Corporate governance, economic entrenchment, and growth. J. Econ. Lit. 2005, 43(3):655-720.
90. Nam D., Parboteeah K.P., Cullen J.B., Johnson J.L. Cross-national differences in firms undertaking innovation initiatives: an application of institutional anomie theory. J. Int. Manag. 2014, 20(2):91-106.
91. Neter J., Wasserman W., Kutner M.H. Applied Linear Statistical Models: Regression, Analysis of Variance, and Experimental Designs 1985, Richard D. Irwin, Inc., Homewood, IL.
92. Newbert S.L. Empirical research on the resource-based view of the firm: an assessment and suggestions for future research. Strateg. Manag. J. 2007, 28(2):121-146.
93. Nohria N., Gulati R. Is slack good or bad for innovation?. Acad. Manag. J. 1996, 39(5):1245-1264.
94. Oh W. Why do some firms outsource IT more aggressively than others?. Proceedings of the 38th Hawaii International Conference on System Sciences 2005.
95. Oliver C. Sustainable competitive advantages: combining institutional and resource-based views. Strateg. Manag. J. 1997, 18(9):697-713.
96. Orozco D. Will India and China profit from technological innovation?. Northwest. J. Technol. Intellect. Prop. 2007, 5(3):426-435.
97. Perez-Batres L.A., Eden L. Is there a liability of localness? How emerging market firms respond to regulatory punctuations. J. Int. Manag. 2008, 14:232-251.
98. Petrick I.J., Juntiwasarakij S. The rise of the rest: hotbeds of innovation in emerging market. Res. Technol. Manag. 2011, 54(4):24-29.
99. Podsakoff P.M., Organ D.W. Self-reports in organizational research: problems and prospects. J. Manag. 1986, 12(2):531-544.
100. Podsakoff P.M., MacKenzie S.B., Lee J.Y., Podsakoff N.P. Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 2003, 88(5):879-903.
101. Powell W.W., Grodal S. Networks of innovators. Oxford Handbook of Innovation 2005, Oxford University Press, Oxford. J. Fagerberg, D.C. Mowery, R.R. Nelson (Eds.).
102. Priem R.L., Butler J.E. Is the resource-based "view" a useful perspective for strategic management research?. Acad. Manag. Rev. 2001, 26(1):22-40.
103. Quinn J.B. Strategic outsourcing: leveraging knowledge capabilities. Sloan. Manag. Rev. 1999, 40:9-21.
104. Quinn J.B. Outsourcing innovation: the new engine of growth. Sloan. Manag. Rev. 2000, 41(4):13-28.
105. Radosevic S., Myrzakhmet M. Between vision and reality: promoting innovation through technoparks in an emerging economy. Technovation 2009, 29:645-656.
106. Rao, N., 2013. Do tax credits stimulate R&D spending? The effect of the R&D tax credit in its first decade. Unpublished doctoral dissertation, The Wagner School, New York.
107. Ray P.K. Resource-constrained innovation for emerging economies: the case of the Indian telecommunications industry. Eng. Manag. 2010, 57(1):144-156.
108. Reihlen M., Smets M., Veit A. Management consultancies as institutional agents: strategies for creating and sustaining institutional capital. Bus. Rev. 2010, 62:317-339.
109. Ren S., Eisingerich A.B., Tsai H. Search scope and innovation performance of emerging-market firms. J. Bus. Res. 2014, (forthcoming). 10.1016/j.jbusres.2014.04.011.
110. Roy S., Sivakumar K. Global outsourcing relationships and innovation: a conceptual framework and research propositions. J. Prod. Innov. Manag. 2012, 29(4):513-530.
111. Roy S., Sivakumar K., Wilkinson I.F. Innovation generation in supply chain relationships: a conceptual model and research propositions. J. Acad. Mark. Sci. 2004, 32(1):61-69.
112. Sanandaji T., Leeson P.T. Billionaires. Ind. Corp. Chang. 2013, 22(1):313-337.
113. Sandberg R., Werr A. Corporate consulting in product innovation: overcoming the barriers to innovation. Eur. J. Innov. Manag. 2003, 6(2):106-110.
114. Schumpeter J.A. Capitalism, Socialism, and Democracy 1942, Harper & Brothers, New York.
115. Scott R.W. Institutions and Organizations: Ideas and Interests 2008, Sage Publications, Thousand Oaks, CA.
116. Sirén C.A., Kohtamäki M., Kuckertz A. Exploration and exploitation strategies, profit performance, and the mediating role of strategic learning: escaping the exploitation trap. Strateg. Entrep. J. 2012, 6(1):18-41.
117. Stanko M.A., Calantone R.J. Controversy in innovation outsourcing research: review, synthesis and future directions. R&D Manag. 2011, 41:8-20.
118. Stock R., Zacharias N. Patterns and outcomes of innovation orientation. J. Acad. Mark. Sci. 2011, 39(6):870-888.
119. Sturdy A. Consultancy's consequences? A critical assessment of management consultancy's impact on management. Br. J. Manag. 2011, 22:517-530.
120. Teece D.J. Profiting from technological innovation: implications for integration, collaboration, licensing, and public policy. Res. Policy 1986, 15(6):285-305.
121. Tisdall P. Agents of Change: The Development and Practice of Management Consultancy 1982, Heinemann, London.
122. Thrift N.J. Knowing Capitalism 2005, Sage, Thousand Oaks, CA.
123. Van Werven R., Bouwmeester O. Legitimizing consultants: biased political actors or impartial advisors? Proceedings of 2010 Academy of Management Annual Conference 2010.
124. Verdin P.J., Williamson P.J. Core competencies, competitive advantages, and market analysis: forging the links 1994, Competence Based Competition, Chichester Wiley. G. Hamel, A. Henee (Eds.).
125. Von Nordenflycht A. What is a professional service firm? Toward a theory and taxonomy of knowledge-intensive firms. Acad. Manag. Rev. 2010, 35(1):155-174.
126. Walker G., Weber D. A transaction cost approach to make-or-buy decisions. Adm. Sci. Q. 1984, 29(3):373-391.
127. Wang C., Kafouros M.I. What factors determine innovation performance in emerging economies? Evidence from China. Int. Bus. Rev. 2009, 18(6):606-616.
128. Washington M., Ventresca M.J. How organizations change: the role of institutional support mchanisms in the incorporation of higher education visibility strategies, 1874-1995. Organ. Sci. 2004, 15(1):82-97.
129. Welsh D.H.B., Alon I., Falbe C.M. An examination of international retail franchising in emerging markets. J. Small Bus. Manag. 2006, 44:130-149.
130. Wright C., Kitay J. But does it work?" Perceptions of the impact of management consulting. Strateg. Chang. 2002, 11:272-278.
131. Xin K.R., Pearce J.L. Guanxi: connections as substitutes for formal institutional support. Acad. Manag. J. 1996, 39(6):1641-1658.
132. Yip G., McKern B. Innovation in emerging markets-the case of China. Int. J. Emerg. Mark. 2014, 9(1):2-10.
133. Zhang Y., Li H., Hitt M.A., Cui G. R&D intensity and international joint venture performance in an emerging market: moderating effects of market focus and ownership structure. J. Int. Bus. Stud. 2007, 38(6):944-960.
134. Zhou K.Z., Li C.B. How strategic orientations influence the building of dynamic capability in emerging economies. J. Bus. Res. 2012, 63:224-231.
135. Zhu Y., Wittmann X., Peng M.K. Institution-based barriers to innovation in SMEs in China. Asia Pac. J. Manag. 2012, 29:1131-1142.