Title: The role of market expansion, environmental turbulence and cost-saving strategies on cooperation on innovation in Russia

Authors: Daria Podmetina; Daria Volchek

Addresses: Faculty of Technology Management, Lappeenranta University of Technology, P.O. Box 20, FI-53851, Finland ' Department of Management Studies, Aalto University, P.O. Box 21230, FI-00076, Finland

Abstract: This paper studies the cooperation on innovation, its antecedents, and performance implications in Russian innovative firms. The model is developed to analyse the influence of firms' strategic orientations, market and technology turbulence, and environmental considerations on cooperative innovation, and its consequent impact on companies' financial and innovation outcomes. We look for patterns in the behaviour of Russian firms that would describe their attitude to the firm's openness in interaction with external partners, and its relation to the strategic orientations of the firm. The study is empirically based on a sample of 182 Russian firms operating in the most innovative regions of the country. The constructed PLS structural equation model showed both internal reliability and convergent validity. The research finds that the extent to which companies cooperate on innovation is determined by market expansion, as well as a willingness to improve production processes. Technology turbulence significantly facilitates cooperation, while market turbulence impedes it. As a result, cooperation in innovation significantly increases a company's innovation capability, at the same time improving its financial performance and assists to achieve cost saving.

Keywords: innovation cooperation; open innovation; market expansion; environmental turbulence; emerging markets; Russia; cost saving; strategic orientation; PLS; partial least squares; structural equation modelling; SEM; market turbulence; financial performance.

DOI: 10.1504/IJBIR.2016.074827

International Journal of Business Innovation and Research, 2016 Vol.10 No.2/3, pp.225 - 245

Published online: 27 Dec 2015 *

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