Open AccessModerator Effect of Innovation on the Relationship between Internationalization and Performance in Brazilian and European Companies
Author(s) -
Antônio Rodrigues Albuquerque Filho,
Editinete André da Rocha García,
Alessandra Carvalho de Vasconcelos,
Afonso Carneiro Lima
Publication year - 2021
Publication title -
revista de educação e pesquisa em contabilidade
Language(s) - English
Resource type - Journals
ISSN - 1981-8610
DOI - 10.17524/repec.v15i3.2880
Subject(s) - internationalization , moderation , business , sample (material) , panel data , positive relationship , industrial organization , return on assets , business administration , accounting , marketing , econometrics , economics , finance , international trade , psychology , profitability index , social psychology , chemistry , chromatography
Objective: To analyzes the moderating effect of innovation on the relationship between internationalization and financial performance.
Method: The sample gathers 1,840 companies listed on Brasil, Bolsa, Balcão (B3) and NYSE Euronext during the period of 2014-2018. Tests for difference of means were performed and linear regression models with panel data via systemic generalized moments method (GMM-Sys) were estimated.
Results: Estimates indicate that the degree of internationalization alone does not assure high financial performance in Brazilian companies, while in European companies it influences return on assets (ROA) negatively. Moreover, in both contexts, the individual moderating effect of the two variables of innovation, exploration (R&D) and exploitation (Capex), could not be identified. However, a positive and significant effect of ambidextrous innovation activities in the relationship between internationalization and financial performance was verified. Evidence of the effect of internationalization on financial performance in both Brazilian and European companies is confirmed when enhanced by the simultaneous engagement of innovation activities.
Contributions: This study contributes to a recent investigative line, which verifies the effect of intervening variables in the internationalization-performance relationship. It contributes to the analysis of this relationship in companies from emerging markets, a much and still needed research focus as a way of gaining a better understanding of business opportunities in adverse institutional conditions and how to seize them.