Internationalization and innovation: A multilevel meta-analysis of national sentiments

Abstract

Innovation is essential for sustaining the global competitive viability of multinational enterprises (MNEs), yet the internationalization–innovation relationship remains theoretically debatable and empirically inconsistent. To resolve the puzzle and identify the underlying mechanisms that contribute to the mixed findings, this study integrates existing empirical evidence from 298 independent samples and presents a multilevel meta-analysis. Taking an organizational learning perspective, this study explores two critical yet underexplored national sentiments that can moderate the MNEs' innovation propensity in internationalization, including technologism and nationalism. Our results show that while technologism strengthens MNEs' innovation in internationalization, nationalism weakens it. In addition, the interaction between the national sentiments exerts significant moderating effects on the relationship. Through exploring the novel drivers and barriers at country level, this study generates new and nuanced insights into innovation management in an international context. It also provides important managerial implications and discusses opportunities for future investigations into the complexity of innovation management in an interconnected and competitive world.