Search scope and innovation performance of emerging-market firms

This study investigates the effects of search scope along the supply chain on the innovation performance of small and medium-sized enterprises (SMEs) in emerging markets. In this research, we develop a conceptual framework by integrating organizational learning theory and relationship governance theory. Based on a sample of 176 Chinese listed SMEs and longitudinal data, the results of this study show that upward and downward search scopes along the supply chain further strengthen the positive effect of R&D capability on the innovation performance of emerging-market firms. The article concludes with implications for practice and future research. (C) 2014 Elsevier Inc. All rights reserved.