Technological knowledge and internationalization: evidence from India

Abstract

The authors combine institutional theory with resource-based theory to explain how emerging market firms (EMFs) manage their technological knowledge capital by venturing into international markets. The authors further explore the contingency effect of international marketing knowledge and competitive intensity in the home country in influencing technological knowledge capital and internationalization relationship. The study employs multiple linear regression analysis using a dataset consisting of 326 Bombay Stock Exchange-listed A and B category stocks for a six-year period (2010–2016). The study finds that with an increase in technological knowledge capital, the internationalization of Indian firms increases. Furthermore, international marketing knowledge and competitive intensity positively moderate this relationship. The study finds that with an increase in technological knowledge capital, the internationalization of Indian firms increases. Furthermore, international marketing knowledge and competitive intensity positively moderate this relationship. The authors’ findings increase international marketing managers' awareness of how internationalization acts as a knowledge management tool for EMFs under the contingency effect of international marketing knowledge and competitive intensity. The study provides novel insights into the technological knowledge capital management strategy by EMFs through internationalization and the role of international marketing knowledge and competitive intensity in increasing firms' ability to even better manage technological knowledge capital.