Title: Internationalisation modes in the Australian telecommunications industry: the influence of different innovation types

Authors: Maja Bašić; Davor Vlajčić; Ivan Novak

Addresses: Department of International Economics, Faculty of Economics and Business, University of Zagreb, J.F. Kennedy Square 6, 10 000 Zagreb, Croatia ' Department of International Economics, Faculty of Economics and Business, University of Zagreb, J.F. Kennedy Square 6, 10 000 Zagreb, Croatia ' Department of International Economics, Faculty of Economics and Business, University of Zagreb, J.F. Kennedy Square 6, 10 000 Zagreb, Croatia

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.

Keywords: internationalisation mode; equity internationalisation; non-equity internationalisation; product innovation; service innovation; process innovation; radical innovation; competitive intensity; international customer requirements; transaction cost theory; telecommunications industry; Australia.

DOI: 10.1504/IJBG.2018.088670

International Journal of Business and Globalisation, 2018 Vol.20 No.1, pp.96 - 119

Received: 03 Jun 2016
Accepted: 09 Sep 2016

Published online: 05 Dec 2017 *

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