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Foreign and domestic collaboration, product innovation novelty, and firm growth

Hsieh, Wan-Lin; Ganotakis, Panagiotis; Kafouros, Mario; Wang, Chengqi


Wan-Lin Hsieh

Panagiotis Ganotakis

Mario Kafouros

Professor of Strategy &international Business


Although prior research underscores the benefits of external collaboration for a firm's innovative output, little research has examined the role that collaboration plays across the different stages of the innovation process. Drawing from organizational learning theory, this article examines (1) how collaboration with domestic partners assists in the formation of collaborations with foreign partners, (2) how knowledge from these collaborations is associated with product innovation at different levels of novelty, and (3) how the relationship between the level of innovation novelty and firm growth is influenced by whether the focal firm engages in open or closed innovation and the origin of the collaborator (foreign or domestic). Three key findings emerge from the econometric analysis of a sample of 1684 Taiwanese firms. First, domestic collaborations assist in the formation of foreign collaborations when the partner type is the same. Second, the level of innovation novelty is associated with the type and geographic location of partners. This study differentiates among noninnovating firms, incremental innovators, and radical innovators and demonstrates that the role of partners changes as the number of countries in which a firm collaborates with each partner type increases. Third, only radical innovation is relevant to firm growth, regardless of whether it is developed internally or through collaboration with domestic or foreign partners.


Hsieh, W., Ganotakis, P., Kafouros, M., & Wang, C. (2018). Foreign and domestic collaboration, product innovation novelty, and firm growth. Journal of Product Innovation Management, 35(4),

Journal Article Type Article
Acceptance Date Nov 17, 2017
Online Publication Date Dec 14, 2017
Publication Date Jul 1, 2018
Deposit Date Mar 27, 2018
Publicly Available Date Mar 27, 2018
Journal Journal of Product Innovation Management
Print ISSN 0737-6782
Electronic ISSN 1540-5885
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 35
Issue 4
Public URL
Publisher URL


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