Product Innovation through International Joint Venture in Emerging Markets: A Focus on the Role of Joint Market Orientation

Product Innovation through International Joint Venture in Emerging Markets: A Focus on the Role of Joint Market Orientation

Product innovation has been viewed as an engine of economic growth for society. It is often considered a driver of competitive advantage for firms in that it enables the firms to differentiate themselves from their competitors, improve on existing products’ ability to fulfill customer needs, and reduce costs. Nonetheless, IJVs do not always achieve product innovation in emerging economies. Many of the IJVs fail. Even though some studies have investigated IJVs between firms from developed economies, research on how MNCs can use their local partners to enhance their innovation outcomes has received little attention. Furthermore, although an extensive body of research on strategic partnerships and their effects on innovation takes the institutional background for granted, it is unclear to apply previous findings to emerging economies. The current study attempts to find what makes IJVs succeed in product innovation in emerging economies, such as China and India. The study will focus on providing insights of how MNCs succeed in product innovation in emerging economies.