How institutional quality affects the drivers and outcomes of innovation in emerging markets

Abstract

How institutional quality affects the drivers and outcomes of innovation in emerging markets: Emerging markets pose great business opportunities, however, more knowledge of these markets is needed to successfully capitalise on these opportunities. This study examined the innovation framework of these markets and the role of institutional quality in these processes. A firm’s product/service and process innovation were thought to be influenced by six drivers and influence two performance outcomes in its own respect. These relationships were expected to be positively moderated by institutional quality. The results of the study were mostly unpredicted and could be attributed to emerging markets being a too heterogeneous group to be studied at large. Additional analyses on three individual markets exhibited mixed results, indicating the innovation framework in emerging markets should only be studied with a model that is adapted to the context of the specific market.