A configurational analysis of internationalization, absorptive capacity, and resource-based factors explaining firms’ innovation performance

This study adopts a configurational approach to examine how firm internationalization leads to innovation through the learning-by-exporting (LBE) effect. It investigates how combinations of internationalization dimensions—earliness, market scope, and intensity—along with absorptive capacity and resource-based factors, influence innovation outcomes. Drawing on the dynamic capabilities perspective, we argue that LBE necessitates all three elements but recognize that simultaneously pursuing early exports, broad market scope, and innovation may strain resources and impede LBE. Through a qualitative comparative analysis of 2748 manufacturing firms from 2007 to 2014, this study captures the causal complexity of LBE factors, including possible equifinal and asymmetric relationships. Our findings provide valuable insights for researchers, particularly highlighting the significance of internationalization dimensions in the context of LBE. They also offer practical implications for managers regarding the need to enhance exporters' absorptive capacity and secure resources for these various activities, as well as for export- and innovation-promotion organizations to align their efforts. • Internationalization, absorptive capacity, and resource-based factors jointly influence firm innovation. • Various configurations of internationalization, absorptive capacity, and resource-based factors determine innovation. • Simultaneously pursuing early exports, broad market scope, and innovation may impede LBE. • The three key elements that drive innovation may actually be complementary or substitutable.