Could Innovation be Driven by Globalization?

David Publishing Company
Publication Type:
Journal Article
Journal of Modern Accounting and Auditing, USA, 2012, 8 (12), pp. 1848 - 1860
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This paper examines the critical role of globalization as a driver for innovation. The introduction of the global strategy quadruple model truly links the three known strategy perspectives (namely, industry competition, resources, and institution views) and performance. The model could assist in advancing the cause of sustainable competitive advantages. This study could assist scholars in addressing the three important research questions: (1) Why are some firms more innovative than others? (2) What effects do product, firm, industry, and market innovativeness have on business performance? and (3) Does the link between innovativeness and business performance depend on all or some of the innovativeness factors of product, firm, industry, and market? The presented set of four hypotheses, when tested, will result in a better understanding of the links and relationships among a firmâs global strategy, innovativeness, and business performance. The quadruple model presented can be used to examine these relationships in general and in the context of innovation. It is anticipated that this paper will assist researchers, business management, and analysts in developing global innovation strategies.
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