The Role of Innovation and Globalization Strategies in Post-Crisis Recovery

25 Pages Posted: 27 Jan 2016

See all articles by Victoria Golikova

Victoria Golikova

National Research University Higher School of Economics

Boris Kuznetsov

National Research University Higher School of Economics

Date Written: January 26, 2016

Abstract

The aim of the research is to conduct an empirical investigation and reveal what types of globalization and innovation strategies in turbulent and unfavorable regional institutional environment are most likely to be associated with different trajectories of Russian manufacturing firms’ performance in 2007-2012. We employ the results of empirical survey of 1000 medium and large enterprises in manufacturing (2009) linked to financial data from Amadeus database and the data on the regional institutional environment. We test that (1) introduction of innovations before the crisis ceteris paribus helped the firms to successfully pass the crisis and recover. We expect that (2) companies that became globalized before the crisis (via importing of intermediate and capital goods; exporting; FDI; establishment of partner linkages with foreign firms) ceteris paribus are more likely to successfully pass the crisis and grow. And (3) propose the positive effect of synergy of innovation efforts and globalization strategy of the firm. We expect that the abovementioned factors are complimentary and reinforce the ability of the firm to recover after crisis shock. We found strong support for the hypothesis that firms financing introduction of new products before the crisis and simultaneously managed to promote and sell them on the global market were rewarded by quick return to the growing path after global crisis. Other strategies, i.e. solely innovations without exporting play insignificant role while exporting without attempts to introduce new products contribute even negatively to post-crisis recover. Institutional environment also matters: in the regions with less level of corruption firms were more likely to grow after the crisis.

Keywords: firm performance; globalization; innovation; manufacturing firms; strategy

JEL Classification: Z

Suggested Citation

Golikova, Victoria and Kuznetsov, Boris, The Role of Innovation and Globalization Strategies in Post-Crisis Recovery (January 26, 2016). Higher School of Economics Research Paper No. WP BRP 123/EC/2016, Available at SSRN: https://ssrn.com/abstract=2722482 or http://dx.doi.org/10.2139/ssrn.2722482

Victoria Golikova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Boris Kuznetsov (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
105
Abstract Views
642
rank
342,937
PlumX Metrics