Effects of Internationalization on Innovation in the Service Industry: Evidence from Korea
Journal of East Asian Economic Integration (JEAI), Vol. 18, No. 4 (December 2014) 339-366
28 Pages Posted: 6 Jan 2015 Last revised: 6 Nov 2016
Date Written: December 30, 2014
This paper examines the impact of internationalization on the product, process and organizational innovations of Korean service firms. Despite the increasing importance of the service sector and the discrepancies in the natures of the manufacturing and service industries, the internationalization-innovation link in the context of service firms has rarely been examined empirically on a large sample. Based on the results of the logistic regressions using the 2006 Korean Innovation Survey data, we found that Korean service firms’ international expansion is significantly and positively associated with their product and organizational innovations. In addition, the magnitude of the estimates in our models revealed that internationalization has a greater impact on product innovation than on process or organizational innovation.
Keywords: Internationalization, Export, Innovation, Service Industry, Korea
JEL Classification: M16, L8, O03
Suggested Citation: Suggested Citation