Internationalisation modes in the Australian telecommunications industry: the influence of different innovation types
by Maja Bašić; Davor Vlajčić; Ivan Novak
International Journal of Business and Globalisation (IJBG), Vol. 20, No. 1, 2018

Abstract: This paper identifies the influence of product, service and process innovation, radical innovation, competitive intensity and international customer requirements on the firms' preferred internationalisation mode. The empirical research was conducted by means of the questionnaire survey on the Australian telecommunications industry between April and September 2014. The multinomial logistic regression analysed 88 responses with respect to 'no', 'non-equity' and 'equity' internationalisation modes. The results suggest that: 1) internationalisation modes vary according to firm age, R&D intensity and international customer requirements; 2) product innovation and competitive intensity significantly influence firms' preference for 'equity' compared to 'non-equity' internationalisation; 3) neither service nor process innovations are significant predictors of 'equity' compared to 'non-equity' internationalisation; 4) radical innovations significantly predict firms' preference for 'no' compared to 'non-equity' internationalisation. Pertaining to the transaction cost theory, the analysis showed that product innovations are the most important predictor of firms' preference for 'equity' over 'non-equity' internationalisation, and radical innovations bound firms' operations to a domestic market.

Online publication date: Thu, 14-Dec-2017

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