Dayan, Mumin; Di Benede o, C. An hony; Dayan, Be ul; Al Rumai hi, Eissa; Al
Zahmi, Rashed
A icle
How much in e na ionaliza ion is inno a ion-wo hy o SMEs? Roles o he deg ee o
in e na ionaliza ion and o ganiza ional unlea ning on he join inno a ion capabili ies-explo a o y
inno a ion ela ionship
Jou nal o Inno a ion & Knowledge (JIK)
P o ided in Coope a ion wi h:
Else ie
Sugges ed Ci a ion: Dayan, Mumin; Di Benede o, C. An hony; Dayan, Be ul; Al Rumai hi, Eissa; Al
Zahmi, Rashed (2024) : How much in e na ionaliza ion is inno a ion-wo hy o SMEs? Roles o he
deg ee o in e na ionaliza ion and o ganiza ional unlea ning on he join inno a ion capabili ies-
explo a o y inno a ion ela ionship, Jou nal o Inno a ion & Knowledge (JIK), ISSN 2444-569X,
Else ie , Ams e dam, Vol. 9, Iss. 4, pp. 1-14,
h ps://doi.o g/10.1016/j.jik.2024.100614
This Ve sion is a ailable a :
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How much in e na ionaliza ion is inno a ion-wo hy o SMEs? Roles o he
deg ee o in e na ionaliza ion and o ganiza ional unlea ning on he join
inno a ion capabili ies-explo a o y inno a ion ela ionship
Mumin Dayan
a,*
, C. An hony Di Benede o
b
, Be ul Dayan
b
, Eissa Al Rumai hi
a
,
Rashed Al Zahmi
a
a
College o Business & Economics, Uni ed A ab Emi a es Uni e si y, Al Ain, Uni ed A ab Emi a es
b
Fox School o Business, Temple Uni e si y, Philadelphia, PA, Uni ed S a es
ARTICLE INFO
JEL classi ica ion:
M14
M15
O14
O31
O32
Keywo ds:
Join inno a ion capabili ies
O ganiza ional unlea ning
Explo a o y inno a ion
And in e na ionaliza ion
ABSTRACT
The exis ing li e a u e on SME in e na ionaliza ion has inadequa ely in eg a ed join inno a ion capabili ies,
o ganiza ional unlea ning, and he in e na ionaliza ion p ocess. P e ious s udies ha e p ima ily examined hese
concep s sepa a ely, obscu ing hei in e connec ion and ecip ocal impac . This s udy ills in a gap in he
li e a u e and esponds o calls o mo e s udies (e.g., Du, Zhu & Li, 2023; Genc, Dayan & Genc, 2019) by
de eloping and es ing a mode a ed media ion model o examine how join inno a ion capabili ies a ec
explo a o y inno a ion h ough he media ing ole o o ganiza ional unlea ning. The esea ch also examines he
mode a ing e ec o he deg ee o in e na ionaliza ion on his ela ionship. A c oss-sec ional su ey was con-
duc ed wi h 300 logis ics and gene al manage s om SMEs in he Uni ed A ab Emi a es (UAE), u ilizing pa ial
leas squa es s uc u al equa ion modeling (PLS-SEM) o e alua e he measu emen models’ alidi y and eli-
abili y, and o es he hypo hesized ela ionships. The esul s demons a e ha o ganiza ional unlea ning is a
key mechanism linking collabo a i e inno a ion capabili ies wi h explo a o y inno a ion. Addi ionally, he
deg ee o in e na ionaliza ion signi ican ly mode a es his ela ionship, wi h a s onge media ion e ec when
in e na ionaliza ion is low. These indings p o ide p ac ical implica ions o SMEs and manage s, especially in
o e seeing inno a ion and unlea ning p ocesses while accoun ing o he deg ee o in e na ionaliza ion in hei
g ow h s a egies. Manage s in SMEs mus ecognize he complexi ies in oduced by in e na ionaliza ion, such as
di e se cul u al no ms and egula o y amewo ks, which can impede he p ocess o unlea ning. To add ess hese
challenges, SMEs should conside adop ing egion-speci ic inno a ion s a egies o in es ing in c oss-cul u al
aining o e ec i ely manage he in eg a ion o di e se knowledge sou ces.
In oduc ion
In oday’s as -paced global ma ke , small and medium-sized en e -
p ises (SMEs) mus balance compe i i eness wi h con inuous inno a-
ion. One way SMEs can enhance inno a ion is h ough pa ne ships
wi h supplie s, whe e join inno a ion capabili ies—buil on sha ed
knowledge, esou ces, and expe ise—play a key ole in de eloping new
p oduc s and se ices (Cen e al., 2023; Ndubisi e al., 2020). Howe e ,
o hese collabo a i e capabili ies o e ec i ely d i e explo a o y
inno a ion— ocused on expe imen a ion and knowledge c ea ion-
—bo h collabo a ion and o ganiza ional unlea ning a e i al.
O ganiza ional unlea ning, he p ocess o disca ding ou da ed knowl-
edge and p ac ices, enables SMEs o adap o changing en i onmen s
and emb ace new ways o inno a ing (Hedbe g, 1981; Leal-Rod íguez
e al., 2015; Tsang & Zah a, 2008; Xi e al., 2020). Mo eo e , he deg ee
o in e na ionaliza ion— e lec ing how ex ensi ely a i m ope a es in
global ma ke s— u he shapes hese dynamics, as SMEs a e exposed o
di e se cul u al, egula o y, and compe i i e en i onmen s, demanding
agili y and adap abili y (Hilme sson e al., 2021; Reim e al., 2022).
This s udy examines how o ganiza ional unlea ning media es he
ela ionship be ween join inno a ion capabili ies and explo a o y
inno a ion, and how he deg ee o in e na ionaliza ion mode a es his
* Co esponding au ho .
E-mail add esses: [email p o ec ed] (M. Dayan), [email p o ec ed] (C.A.D. Benede o), [email p o ec ed] (B. Dayan), eissaAl a aj@
uaeu.ac.ae (E.A. Rumai hi), [email p o ec ed] (R.A. Zahmi).
Con en s lis s a ailable a ScienceDi ec
Jou nal o Inno a ion & Knowledge
jou nal homepage: www.else ie .com/loca e/jik
h ps://doi.o g/10.1016/j.jik.2024.100614
Recei ed 7 Sep embe 2024; Accep ed 24 Oc obe 2024
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
A ailable online 9 No embe 2024
2444-569X/© 2024 The Au ho (s). Published by Else ie España, S.L.U. on behal o Jou nal o Inno a ion & Knowledge. This is an open access a icle unde he
CC BY-NC-ND license (
h p://c ea i ecommons.o g/licenses/by-nc-nd/4.0/ ).
ela ionship. By inco po a ing supplie collabo a ion and global p es-
ence in o a uni ied amewo k, he s udy aims o shed ligh on how SMEs
can le e age hese ac o s o os e inno a ion. The analysis is g ounded
in dynamic capabili ies and o ganiza ional lea ning heo ies. Acco ding
o dynamic capabili ies heo y (B ewis e al., 2023), i ms mus
cons an ly adjus hei esou ces and abili ies o h i e in changing en-
i onmen s. Join inno a ion capabili ies—SMEs’ abili y o collabo a e
wi h supplie s o boos hei inno a ion po en ial—a e seen as a ype o
dynamic capabili y ha enhances a i m’s abili y o inno a e (Lin e al.,
2022). Howe e , o ully exploi hese capabili ies, i ms mus also
engage in o ganiza ional unlea ning o disca d obsole e p ac ices and
adop new app oaches ha be e sui e ol ing ma ke condi ions,
pa icula ly in in e na ional con ex s. O ganiza ional lea ning heo y
(A gy is and Sch¨
on, 1978) emphasizes he need o ongoing lea ning and
adjus men , wi h unlea ning playing a c i ical ole when companies ace
new challenges in global ma ke s whe e p e ious knowledge may no
longe be applicable (Klamme e al., 2024). The deg ee o in e na-
ionaliza ion in luences how well i ms can unlea n and apply new
knowledge o enhance hei inno a ion ou comes.
P e ious esea ch has demons a ed he impo ance o collabo a i e
inno a ion capabili ies in p omo ing explo a o y inno a ion in SMEs.
These capabili ies enable i ms o ha ness supplie knowledge and e-
sou ces o c ea e inno a i e p oduc s and p ocesses (Robe son e al.,
2023). Howe e , he success o hese pa ne ships o en depends on he
company’s abili y o adap and espond o new challenges, making
o ganiza ional unlea ning an essen ial ac o (Klamme & Gueldenbe g,
2020). By disca ding ou da ed p ac ices, i ms c ea e space o new,
ma ke - ele an knowledge and me hodologies, which is c i ical o
emaining compe i i e and inno a i e (Zhao & Wang, 2020). Explo -
a o y inno a ion is pa icula ly i al o SMEs, as i allows hem o
expe imen wi h new possibili ies and d i e u u e success (Sayed &
Dayan, 2024).
In e na ionaliza ion also has a di ec impac on a i m’s inno a ion
and pe o mance (Pas elakos e al., 2023). Engaging in global ma ke s
exposes i ms o a b oade ange o expe iences, challenges, and op-
po uni ies, which can enhance hei abili y o inno a e (Zah a, I eland,
& Hi , 2000). Howe e , his inc eased exposu e also equi es i ms o
unlea n p ac ices ha may be e ec i e in domes ic ma ke s bu a e less
sui able in e na ionally (Appiah e al., 2023).
Despi e he ex ensi e esea ch on inno a ion, gaps emain. Fi s ,
join inno a ion capabili ies, o ganiza ional unlea ning, and in e na-
ionaliza ion ha e a ely been in eg a ed in o a single amewo k. Mos
s udies ha e examined hese concep s sepa a ely, limi ing ou unde -
s anding o hei in e play (Du e al., 2023). Second, much o he exis ing
li e a u e ocuses on la ge co po a ions, o e looking he unique chal-
lenges aced by SMEs, which o en encoun e di e en obs acles and
oppo uni ies in inno a ion and in e na ional expansion compa ed o
la ge i ms. Finally, al hough he impac o in e na ionaliza ion on
inno a ion has been well s udied (E e s e al., 2023; Hilme sson e al.,
2023), i s ole as a mode a o be ween join inno a ion capabili ies,
unlea ning, and explo a o y inno a ion—especially in SMEs—has no
been ho oughly explo ed. This s udy aims o add ess hese gaps by
analyzing he ela ionships be ween join inno a ion capabili ies,
o ganiza ional unlea ning, and SME in e na ionaliza ion. In ligh o he
iden i ied gaps in he li e a u e, his s udy examines he ollowing
esea ch ques ions: “How does o ganiza ional unlea ning media e he
ela ionship be ween join inno a ion capabili ies and explo a o y inno a-
ion, and o wha ex en does in e na ionaliza ion mode a e his ela ionship
in SMEs?”
This esea ch ad ances bo h dynamic capabili ies and o ganiza ional
lea ning heo ies in se e al ways. I expands he dynamic capabili ies
amewo k by emphasizing he ole o o ganiza ional unlea ning in
enabling SMEs o adap hei join inno a ion capabili ies o explo -
a o y inno a ion, s essing ha unlea ning is essen ial in dynamic en-
i onmen s. Addi ionally, he s udy con ibu es o o ganiza ional
lea ning heo y by highligh ing he impo ance o unlea ning in he
in e na ionaliza ion p ocess, demons a ing how SMEs mus consis-
en ly abandon ou da ed p ac ices o main ain compe i i eness in global
ma ke s. By examining he mode a ing e ec o in e na ionaliza ion on
he ela ionship be ween join inno a ion capabili ies, unlea ning, and
explo a o y inno a ion, he s udy o e s p ac ical insigh s in o how
SMEs can enhance hei inno a i e pe o mance h ough global
expansion. The concep ual model ou lining hese ela ionships is
depic ed in Fig. 1.
Concep ual backg ound and ele ance o he con ex
O ganiza ional unlea ning, dynamic capabili ies and in e na ionaliza ion
Mode n ma ke s a e de ined by cons an change and unce ain y due
o apid echnological ad ancemen s, economic ola ili y, and poli ical
ins abili y (Schmi e al., 2018). In his uns able en i onmen , o gani-
za ions mus no only u ilize hei exis ing capabili ies bu also cul i a e
new ones o a ain long- e m success and sus ain a compe i i e ad an-
age (Ky doda e al., 2023). The no ion o s a egic enewal pe ains o
his adap i e p ocess, emphasizing he signi icance o ongoing capa-
bili y enhancemen (Issah e al., 2023). O ganiza ional lea ning is a
c i ical elemen o s a egic enewal, allowing i ms o add ess he
challenges posed by inc easing global compe i ion, diminishing p oduc
li ecycles, and echnological ad ancemen s by ha monizing he u iliza-
ion o exis ing knowledge wi h he pu sui o inno a i e app oaches
(Rashman e al., 2009). Explo a ion necessi a es he adop ion o inno-
a i e business models and he execu ion o dis up i e, ans o ma i e
p ocesses wi hin he o ganiza ion (Zhou e al., 2020).
The dynamic capabili ies amewo k, based on he esou ce-based
iew o he i m, elucida es how o ganiza ions can eo ganize in e nal
and ex e nal esou ces o a ain a compe i i e ad an age (Ab aham
e al., 2012). These capabili ies de elop o e ime and en ail o ganiza-
ional ou ines ha may equi e modi ica ion o alle ia e compe i i e
p essu es. Dynamic capabili ies a e ad an ageous e en in s able en i-
onmen s (Eisenha d & Ma in, 2000) and can be classi ied in o inc e-
men al dynamic capabili ies and enewing dynamic capabili ies
(Amb osini & Bowman, 2009).
Inc emen al dynamic capabili ies deno e g adual al e a ions o
exis ing esou ce con igu a ions, ypically linked o exploi a i e inno-
a ion (Pang e al., 2023). These capabili ies enable i ms o u ilize
exis ing skills and compe encies, he eby augmen ing hei p oduc s and
se ices o cu en cus ome s h ough enhanced in e nal p ocesses and
s uc u es. Con e sely, enewing dynamic capabili ies equi es a mo e
in en ional eju ena ion o he o ganiza ion’s esou ce ounda ion. This
enewal necessi a es he de elopmen , implemen a ion, o eo ganiza-
ion o new esou ces o undamen ally al e he o ganiza ion
(Amb osini & Bowman, 2009). Renewal capabili ies a e in ica ely
associa ed wi h explo a o y inno a ion, which aims o in oduce no el
business models and dis up i e enewal p ocesses (Anand e al., 2024).
Inc emen al and enewing capabili ies equi e al e a ions o he
esou ce base: inc emen al capabili ies enhance exis ing esou ces,
whe eas enewing capabili ies in en ionally expand o al e hem
(Meh alian e al., 2024). A hi d ca ego y, egene a i e dynamic capa-
bili ies, is essen ial o enhancing an o ganiza ion’s dynamic skills a he
han me ely i s esou ce base (Amb osini & Bowman, 2009). These ca-
pabili ies allow i ms o shi om obsole e p ac ices o new adap i e
compe encies ha a e key o su i al in ola ile en i onmen s
(Ky doda e al., 2023). In his con ex , o ganiza ional unlea ning is
essen ial, as i enables i ms o ques ion and supplan en enched
knowledge and p ac ices, he eby os e ing inno a ion. Regene a i e
capabili ies can gene a e new dynamic skills o augmen exis ing ones,
and hei exis ence equen ly in luences a i m’s success o ailu e (Das
& Bocken, 2024).
This s udy p omo es a ansi ion om a s a ic o a dynamic capabili y
amewo k in he concep ualiza ion o o ganiza ional unlea ning. This
amewo k in eg a es dynamic capabili ies heo y and o ganiza ional
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
2
lea ning heo y o elucida e he ela ionships among join inno a ion
capabili ies, o ganiza ional unlea ning, explo a o y inno a ion, and
in e na ionaliza ion. Dynamic capabili ies emphasize he necessi y o
econ igu ing esou ces o adjus o e ol ing en i onmen s, whe eas
o ganiza ional lea ning highligh s he impo ance o unlea ning obso-
le e knowledge o enable his adap a ion (Teece e al., 1997). These
concep s a e essen ial o companies aiming o main ain compe i i e-
ness in oday’s swi ly changing en i onmen , as hey unde sco e he
impo ance o cul i a ing new skills and elimina ing ou da ed p ac ices.
In his con ex , in e na ionaliza ion p o oundly in luences he
in e play be ween join inno a ion capabili ies, o ganiza ional
unlea ning, and explo a o y inno a ion. As SMEs en e in e na ional
ma ke s, hey ace a ied cul u es, compe i i e landscapes, and ex e nal
p essu es ha can ei he acili a e o obs uc hei abili y o unlea n and
inno a e (Be ns, 2023). The dynamic capabili ies o esou ce econ i-
gu a ion and he unlea ning o obsole e knowledge a e i al o i ms
ope a ing in global ma ke s, whe e adap a ion o ex e nal demands is
essen ial o main aining compe i i e ad an age. Companies wi h sig-
ni ican in e na ionaliza ion equen ly need o unde ake ex ensi e
unlea ning o adap o di e se ex e nal condi ions and cus ome p e -
e ences (Zhou e al., 2010). The capaci y o unlea n is essen ial o SMEs
o elimina e domes ically o ien ed p ac ices and emb ace globally
pe inen knowledge and compe encies (Johanson & Vahlne, 2009). In
con as , companies wi h educed in e na ionaliza ion may encoun e
diminished ex e nal p essu es o adap , he eby es ic ing he necessi y
o unlea ning. This insula ion may limi hei capaci y o ully u ilize
join inno a ion capabili ies o explo a o y inno a ion, as hey a e less
exposed o a ied knowledge sou ces (Hi e al., 1997). The le el o
in e na ionaliza ion can ei he enhance o educe he in luence o
o ganiza ional unlea ning and collabo a i e inno a ion capabili ies on
explo a o y inno a ion, con ingen upon he deg ee o a i m’s
in ol emen in in e na ional ma ke s.
Rele ance o he s udy con ex
We conduc a comp ehensi e examina ion o his heo e ical
amewo k in he Uni ed A ab Emi a es (UAE), as elabo a ed in he
Me hods sec ion (Sec ion 4). He e, we p o ide a a ionale o he heo-
e ical signi icance o his con ex . Typically, we ex end ou a en ion
beyond he usual emphasis on Wes e n o Eas e n Asian si ua ions and
espond o he demand o u he in es iga ion in o inno a ion and
in e na ionaliza ion p ocess in Middle Eas e n na ions (Genc e al.,
2019; Younis & Elbanna, 2022). Howe e , i is wo h no ing ha he
economic and inancial p o ile o he UAE is also in iguing, and ou
expe imen s wi h he sugges ed amewo k in he UAE p o ide aluable
insigh s o coun ies wi h compa able cul u al p o iles.
Speci ically, we a gue ha he e a e dis inc ac o s ha can enhance
he obus ness and c edibili y o he sugges ed connec ions, pe aining
o bo h he media ion and mode a ion p ocesses. Fi s , he UAE has
ecen ly implemen ed a Na ional Inno a ion S a egy in o de o posi-
ion i sel as one o he wo ld’s mos inno a i e coun ies wi hin a span
o se en yea s. The coun y delinea es he se en p io i y sec o s o hese
ini ia i es. SMEs, which a e decisi e o he coun y’s economy, ha e he
po en ial o ake a p ominen posi ion in his na ional s a egy by
adop ing a mo e inno a i e app oach. The economic ac i i ies and
o e all adop ion o he s a egy can be signi ican ly in luenced by he
go e nmen ’s ini ia i es as well as he capaci y and inclina ion o SMEs
o inno a e. Hence, i is i al o bols e he in e na ionaliza ion and
inno a i eness o SMEs in he UAE in o de o os e economic g ow h in
he coun y. Second, he apid expansion o global ma ke s o e he pas
h ee decades has had an impac on SMEs in he coun y, leading o a
g owing signi icance o in e na ionaliza ion (Caiazza, 2016). Due o he
educ ion o ade ba ie s and ad ancemen s in anspo a ion ech-
nologies (Ha is e al., 2015), SMEs ha e been expe iencing accele a ed
g ow h in in e na ional ma ke s. SMEs no only expe ience he ad an-
ages o inc eased in e na ionaliza ion, such as accessing mo e con-
sume s and g ow h p ospec s, bu also encoun e signi ican di icul ies
due o ising global compe i ion. Speci ically, companies ha ail o
inno a e a e highly suscep ible o in e na ional compe i ion. Thi d, he
UAE has made signi ican s ides in di e si ying i s economy away om
i s adi ional eliance on oil and gas, which ha e adi ionally se ed as
he ounda ion o i s economy. Cu en ly, indus ies such as ou ism,
a ia ion, eal es a e, ade, and inancial se ices ha e a subs an ial
impac on he coun y’s g oss domes ic p oduc (GDP), despi e no being
ela ed o he oil sec o . As o 2023, he non-oil sec o accoun s o
a ound 70% o he UAE’s GDP, indica ing he e ec i eness o he
coun y’s e o s o di e si y i s economy. Fou h, The UAE’s ad an a-
geous geog aphical posi ion a he c oss oads o Asia, Eu ope, and A ica
has es ablished i as a pi o al global ade hub. The UAE is a p ominen
pa icipan in he in e na ional a ia ion indus y, boas ing Emi a es
Ai lines and E ihad Ai ways as wo o he o emos global ca ie s. The
na ion’s ee zones, such as Jebel Ali F ee Zone (JAFZA) and Dubai In-
e na ional Financial Cen e (DIFC), en ice o eign in es men s by
p o iding incen i es including ax exemp ions and comple e o eign
owne ship igh s.
Hypo heses de elopmen
Media ing ole o o ganiza ional unlea ning
The in eg a ion o ex e nal knowledge in o an o ganiza ion’s exis ing
sys ems is a mul i ace ed p ocess signi ican ly shaped by he o ganiza-
ion’s cu en knowledge base, ou ines, and cogni i e amewo ks
(Ma kus e al., 2002; Odec & Aya oo, 2020). O ganiza ional lea ning
heo y posi s ha o ganiza ions de elop by assimila ing, analyzing, and
e aining knowledge, which subsequen ly in luences hei es ablished
p ocesses and beha io s (A go e e al., 2021). None heless, hese
es ablished ou ines and cogni i e amewo ks can obs uc he e ec i e
u iliza ion o new in o ma ion, pa icula ly when i challenges he s a us
quo (Lei e & Mills, 1996). Unlea ning is undamen al, as he en enched
ou ines and cogni i e amewo ks ha once acili a ed an o ganiza-
ion’s achie emen s may become igid and esis an o ans o ma ion.
Fig. 1. Concep ual mode.
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
3
This igidi y obs uc s he o ganiza ion’s capaci y o adop new knowl-
edge and inno a ions (Zaidi, 2023). O ganiza ional lea ning heo y
posi s ha lea ning encompasses bo h he acquisi ion o new knowledge
and he al e a ion o eplacemen o ou da ed knowledge s uc u es ha
do no mee he o ganiza ion’s equi emen s (Joseph e al., 2023).
In he ealm o SMEs, engagemen in collabo a i e inno a ion en-
dea o s wi h ex e nal pa ne s in oduces hem o no el concep s,
echnologies, and me hodologies. Ex e nal pa ne s, including supplie s,
equen ly p esen new pe spec i es and insigh s ha may con adic he
SME’s es ablished p ac ices. Consequen ly, SMEs mus ac i ely pa ici-
pa e in he unlea ning p ocess, which en ails elinquishing ou da ed
ou ines and emb acing new p ac ices ha co espond wi h he no el
knowledge in oduced by hese pa ne s (Wong & Vongswasdi, 2024).
Fu he mo e, he heo y o dynamic capabili ies unde sco es he
signi icance o econ igu a ion, which in ol es modi ying a i m’s asse
s uc u e and ans o ming i s ope a ional capabili ies o adep ly
add ess new oppo uni ies o h ea s. Join inno a ion capabili ies
eme ge om his econ igu a ion p ocess (Gi od & Whi ing on, 2017).
When SMEs pa icipa e in collabo a i e inno a ion, hey no only gain
new knowledge bu also modi y hei exis ing capabili ies o in eg a e
his knowledge in o hei business ope a ions (Rajapa hi ana & Hui,
2018). This econ igu a ion equen ly necessi a es he elinquishmen
o obsole e skills and compe encies ende ed i ele an by ecen ad-
ancemen s (Hen idsson e al., 2009). An SME enowned o la ge-scale
manu ac u ing may pa ne wi h a supplie o de elop cus omized,
high-quali y p oduc s. In his con ex , he bene i s o mass p oduc ion,
dependen on economies o scale, may become obsole e as cus om-
iza ion and lexibili y gain pa amoun impo ance (Kılıç & A illa, 2024).
The e o e, he SME mus elinquish i s cu en capabili ies and ob ain
new ones ha a e mo e app op ia e o pe sonalized manu ac u ing.
The in e ac ion o unlea ning and econ igu a ion is essen ial o he
i m’s dynamic capabili ies, allowing i o adjus i s s a egies and op-
e a ions in esponse o changing ma ke demands in luenced by
collabo a i e inno a ion ini ia i es (An unes & Pinhei o, 2020). These
a gumen s highligh he bene icial co ela ion be ween collabo a i e
inno a ion capabili ies and o ganiza ional unlea ning. As SMEs
inc easingly pa icipa e in collabo a i e inno a ion, i is impe a i e o
hem o abandon obsole e p ac ices o e ec i ely assimila e and u ilize
he new knowledge and capabili ies acqui ed om hese collabo a ions.
Consequen ly, we pu o h he subsequen hypo hesis:
Hypo hesis 1. The e is a posi i e ela ionship be ween join inno a-
ion capabili ies and o ganiza ional unlea ning o SMEs.
O ganiza ional memo y unc ions as a collec i e eposi o y o an
o ganiza ion’s his o ical da a, sa egua ding e ec i e ou ines, p oced-
u es, and s a egies (Megill, 1997). This memo y o e s s abili y and
con inui y, bene icial o main aining consis ency and e iciency, espe-
cially in epe i i e asks. In he ealm o explo a o y inno a ion, his
s abili y can p esen bo h bene i s and d awbacks (Lin e al., 2021).
O ganiza ional amnesia, on he o he hand, e e s o he inabili y o
e ain o e ec i ely u ilize knowledge, equen ly leading o ecu en
e o s and ine iciencies. This memo y loss may a ise om ele a ed
employee u no e , al e a ions in leade ship, o insu icien
knowledge-sha ing sys ems. A obus o ganiza ional memo y acili a es
adap a ion and inno a ion, whe eas o ganiza ional amnesia hinde s
hese p ocesses, esul ing in a cycle o elea ning and se backs (Sho &
Izak, 2021). Recen s udies highligh ha p ese ing o ganiza ional
memo y is essen ial o p e en he expensi e epe cussions o amnesia,
especially in ola ile business con ex s (e.g., Leon e al., 2024).
Endu ing o ganiza ional memo y can esul in cogni i e and p oce-
du al ine ia, he eby hinde ing an o ganiza ion’s abili y o inno a e.
This ine ia mani es s in a ious o ms, chie ly h ough he ein o ce-
men o en enched men al models and cogni i e amewo ks ha
impede employees om acknowledging he me i o inno a i e s a e-
gies (Moo man & Mine , 1997). Fo example, when an o ganiza ion has
p e iously achie ed success wi h a speci ic s a egy o p ocess, he e is a
p onounced endency o pe sis wi h hose me hods, e en in he ace o
new and po en ially dis up i e inno a ions (Kuhlmann e al., 2023).
This eliance on pas accomplishmen s can signi ican ly hinde an o -
ganiza ion’s capaci y o adjus o e ol ing ma ke dynamics and sup-
p ess c ea i i y and inno a ion.
The e en ion o obsole e knowledge, combined wi h he acquisi ion
o con empo a y ma ke expe ise, may esul in an excessi e in lux o
in o ma ion (Alshan y & Emeagwali, 2019;Cega a-Na a o &
S´
anchez-Polo, 2007). This phenomenon, e med in o ma ion o e load,
a ises when he quan i y o accessible in o ma ion su passes an o ga-
niza ion’s abili y o p ocess and comp ehend i e icien ly (A nold e al.,
2023). This o e load p esen s conside able di icul ies, especially in he
explo a ion phase, whe e adap abili y and swi adjus men a e c ucial.
As o ganiza ional memo y inc eases, i can ele a e cogni i e load,
leading o p o ac ed decision-making, o e looked oppo uni ies, and a
educed abili y o swi ly adjus o ma ke changes (Laamanen e al.,
2018).
O ganiza ions mus de elop egene a i e dynamic capabili ies o
add ess hese challenges (Dixon e al., 2014). Regene a i e dynamic
capabili y deno es an o ganiza ion’s capaci y o elimina e ou da ed
knowledge and ou ines, consequen ly adop ing inno a i e p ac ices.
The concep o unlea ning is undamen al o his capabili y, allowing
o ganiza ions o libe a e hemsel es om he limi a ions o pas expe-
iences and adap o new ma ke eali ies. In he absence o he abili y o
unlea n, o ganiza ions may become ensna ed in a cycle o diminishing
e u ns, whe e en enched p ac ices no longe yield equi alen alue,
ye hey esis adop ing new s a egies (A go e, 2012).
The signi icance o unlea ning is ampli ied by he swi e olu ion o
con empo a y ma ke s. Doughe y (1992) unde sco es ha ma ke
knowledge can apidly become obsole e, equi ing ongoing enewal and
adap a ion o o ganiza ional knowledge. O ganiza ions ha excessi ely
adhe e o es ablished knowledge jeopa dize hei compe i i e ad an age
by no adap ing o ma ke changes. Unlea ning is essen ial o o gani-
za ions o elimina e obsole e knowledge, he eby p omo ing collabo a-
i e sensemaking and imp o ing in o ma ion sha ing h oughou he
o ganiza ion (Cega a-Na a o & Wensley, 2019). O ganiza ions can
enhance hei capaci y o inno a ion by upda ing hei ins i u ional
knowledge o be e align s a egies wi h cu en ma ke demands.
Fu he mo e, he capaci y o unlea n is no only essen ial o o ga-
niza ional lea ning bu also unc ions as a i al enable o i . The
unlea ning p ocess acili a es he cogni i e capaci y equi ed o new
lea ning o anspi e (Klamme & Gueldenbe g, 2019). When an o ga-
niza ion ac i ely pa icipa es in unlea ning, i e adica es obsole e
knowledge, hus acili a ing he assimila ion o no el ideas, me hodol-
ogies, and p ac ices. This dynamic is i al o cul i a ing a cul u e o
ongoing lea ning and inno a ion, especially in apidly e ol ing en i-
onmen s whe e adap abili y is a mus o sus aining a compe i i e
ad an age.
In conclusion, al hough o ganiza ional memo y ensu es s abili y and
con inui y, i may also obs uc inno a ion by os e ing cogni i e and
p ocedu al ine ia, leading o in o ma ion o e load and educed
adap abili y. O ganiza ions mus enhance hei abili y o unlea n, which
is essen ial o os e ing o ganiza ional lea ning and inno a ion. By
pa icipa ing in his i al p ac ice, companies can e esh hei knowl-
edge base, imp o e hei adap abili y o changing condi ions, and
main ain a compe i i e edge in swi ly e ol ing ma ke s. Consequen ly,
we p opose he ollowing:
Hypo hesis 2. The e is a posi i e ela ionship be ween o ganiza ional
unlea ning and explo a o y inno a ion o SMEs.
Wi hin he con ex o SMEs, Hypo hesis 1 and Hypo hesis 2 sugges
ha o ganiza ional unlea ning is in ol ed in he p ocess o linking he
capabili ies o collabo a i e inno a ion and explo a o y inno a ion. In
o de o SMEs o success ully u ilize hei ex e nal collabo a ions and
achie e explo a o y inno a ion, i is essen ial o hem o engage in
o ganiza ional unlea ning. This is accomplished by os e ing he usion
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
4
o knowledge (A go e, 2012), acili a ing he de elopmen o cogni i e
abili y (Klamme & Gueldenbe g, 2019), o e coming challenges in
adap ing o changing ma ke condi ions (Moo man & Mine , 1997), and
op imizing he alue o collabo a i e inno a ion capabili ies (Gi od &
Whi ing on, 2017). When i comes o ans o ming he po en ial o
collabo a i e inno a ion capabili ies in o conc e e inno a i e ou comes,
media ion plays a i al ole. This enables SMEs o main ain hei
compe i i eness in ma ke s ha a e cons an ly e ol ing. The e o e, we
p opose he ollowing:
Hypo hesis 3. O ganiza ional unlea ning media es he ela ionship
be ween join inno a ion capabili ies and explo a o y inno a ion o
SMEs.
Mode a ing ole o he deg ee o in e na ionaliza ion
As small and medium-sized en e p ises (SMEs) expand hei ope a-
ions in e na ionally, hey con on inc easingly in ica e and a ied
ma ke condi ions. Acco ding o dynamic capabili ies heo y, i ms mus
con inuously adap hei esou ces and capabili ies o e ec i ely na i-
ga e hese complex en i onmen s. Howe e , his complexi y o en di-
e s a en ion om collabo a i e inno a ion capabili ies, as i ms
become p eoccupied wi h managing di e se egula o y amewo ks,
cul u al dispa i ies, and unique ma ke ci cums ances (Eisenha d &
Ma in, 2000). This dispe sion o ocus can weaken he e ec i eness o
collabo a i e inno a ion capabili ies in os e ing o ganiza ional
unlea ning. As a esul , SMEs may s uggle o ecognize and disca d
obsole e p ac ices in a o o no el ones, leading o a po en ial weak-
ening o he co ela ion be ween join inno a ion capabili ies and
o ganiza ional unlea ning as he le el o in e na ionaliza ion ises (Hi
e al., 2012).
Dynamic capabili ies heo y u he emphasizes he signi icance o
esou ce econ igu a ion o adap o e ol ing en i onmen s. Howe e ,
SMEs o en ope a e wi h limi ed esou ces, which, upon in e na ional-
iza ion, a e equen ly alloca ed o manage he complexi ies o a ious
ma ke s (Sui & Baum, 2014). This alloca ion educes he ocus on
collabo a i e inno a ion and he p ocess o o ganiza ional unlea ning,
as i ms p io i ize immedia e ope a ional e iciency o e long- e m
inno a ion. Consequen ly, he edi ec ion o esou ces and a en ion
may unde mine he connec ion be ween collec i e inno a ion abili y
and he unlea ning p ocess, as he essen ial skills equi ed o unlea ning
migh emain unde de eloped due o hese esou ce cons ain s (Knigh
& Ca usgil, 2004).
Addi ionally, dynamic capabili ies heo y posi s ha o ganiza ions
need o o e come esis ance o change o e ec i ely econ igu e hei
capabili ies. Howe e , he p ocess o in e na ionaliza ion can exace -
ba e o ganiza ional ine ia, as SMEs mus main ain consis ency and
s abili y ac oss mul iple ma ke s. This ine ia os e s a eluc ance o
change, which hinde s he i m’s capaci y o engage in unlea ning, e en
when join inno a ion capabili ies a e p esen (Zhang e al., 2022). The
emphasis on main aining s abili y in in e na ional ope a ions can
complica e he unlea ning o exis ing ou ines and p ac ices, he eby
diminishing he posi i e co ela ion be ween join inno a ion capabil-
i ies and o ganiza ional unlea ning, pa icula ly a highe le els o
in e na ionaliza ion (Ve meulen & Ba kema, 2002).
Fu he mo e, en e ing cul u ally and ins i u ionally dis an ma ke s
o en necessi a es dynamic capabili ies ha enable SMEs o adap hei
join inno a ion capabili ies o new con ex s. Howe e , he challenges
associa ed wi h ans e ing and adap ing hese capabili ies ac oss
a ious ma ke s can hinde o ganiza ional unlea ning (Xi e al., 2020).
SMEs may s uggle o econcile hei exis ing p ac ices wi h he new
demands equi ed in di e se in e na ional se ings, leading o a weak-
ened connec ion be ween collabo a i e inno a ion capabili ies and
o ganiza ional unlea ning (Gau e al., 2022).
As SMEs expand globally, hey a e also compelled o lea n new
p ac ices and adap o di e en ma ke condi ions, bo h o which a e
undamen al componen s o dynamic capabili ies. Howe e , he
emphasis on acqui ing new ope a ional me hods can pa adoxically
impede he p ocess o abandoning old p ac ices, pa icula ly when hose
olde p ac ices ha e yielded success in he domes ic ma ke (Klamme
e al., 2023). This simul aneous ocus on lea ning new in e na ional
p ac ices while p ese ing e ec i e domes ic p ac ices can c ea e a
pa adox, whe e he necessi y o abso b new knowledge hinde s he
abili y o disca d ou da ed knowledge (E dogan e al., 2020). Conse-
quen ly, his pa adox can unde mine he s ong co ela ion be ween
join inno a ion capabili ies and o ganiza ional unlea ning, as he i m’s
ocus shi s owa d adap ing o new ma ke s a he han le ing go o
obsole e p ac ices (Cohen & Le in hal, 1990).
In summa y, he insigh s om dynamic capabili ies heo y and he
challenges posed by in e na ionaliza ion sugges ha as SMEs expand
hei global ope a ions, a ange o ac o s—including complexi y,
limi ed esou ces, cul u al and ins i u ional di e ences, o ganiza ional
esis ance o change, and he di icul ies associa ed wi h lea ning and
unlea ning—con ibu e o a diminished posi i e co ela ion be ween
join inno a ion capabili ies and o ganiza ional unlea ning. These ac-
o s complica e he abili y o SMEs o ac i ely engage in o ganiza ional
unlea ning, e en when hey possess s ong join inno a ion capabili ies.
Thus, we p opose ha :
Hypo hesis 4. The posi i e ela ionship be ween join inno a ion ca-
pabili ies and o ganiza ional unlea ning is mode a ed by he deg ee o
in e na ionaliza ion o SMEs.
Acco ding o dynamic capabili ies heo y, o ganiza ions mus
con inually adap hei esou ces and capabili ies o e ec i ely espond
o changing en i onmen s (Teece, Pisano & Shuen, 1997). Howe e , in
highly in e na ionalized small and medium-sized en e p ises (SMEs),
he ocus on managing he complexi ies o global ope a ions can de ac
om he i m’s abili y o engage in o ganiza ional unlea ning, which is a
key ac o o os e ing explo a o y inno a ion. As esou ces become
s e ched hin ac oss mul iple in e na ional ma ke s, he p ocesses
necessa y o unlea ning—such as disca ding ou da ed p ac ices and
expe imen ing wi h new ideas—may be dep io i ized. This dep io i i-
za ion can lead o a weakened ela ionship be ween unlea ning and
explo a o y inno a ion (No elo, 2015).
The inc easing demand o esou ces o handle di e se egula o y
en i onmen s, cul u al di e ences, and ma ke condi ions can u he
limi he a en ion and capaci y ha SMEs ha e o engage in he deep
unlea ning p ocesses equi ed o d i e explo a o y inno a ion
(Klamme e al., 2024). This shi in ocus om inno a ion o ope a-
ional e iciency and ma ke adap a ion e lec s he challenges posed by
in e na ionaliza ion, whe e he need o main ain day- o-day ope a ions
ac oss a ied con ex s akes p ecedence o e he longe - e m goal o
os e ing inno a ion. As a esul , he posi i e ela ionship be ween
o ganiza ional unlea ning and explo a o y inno a ion becomes
inc easingly s ained in highly in e na ionalized i ms (Hi e al., 2012).
Mo eo e , he deg ee o in e na ionaliza ion o en en ails en e ing
ma ke s ha a e cul u ally and ins i u ionally dis an om he SME’s
home coun y. The g ea e he dis ance be ween he home and hos
coun ies, he mo e challenging i becomes o implemen and bene i
om o ganiza ional unlea ning (Su du & Na ula, 2021). Unlea ning is
inhe en ly dis up i e, equi ing o ganiza ions o ques ion and disca d
es ablished p ac ices and cogni i e amewo ks. In in e na ional con-
ex s, cogni i e dissonance caused by cul u al and ins i u ional di e -
ences can exace ba e he challenges o unlea ning, making i ha de o
SMEs o align hei exis ing p ac ices wi h new ones necessa y o
e ec i e inno a ion in hese di e se en i onmen s (Gau e al., 2022).
When SMEs ope a e in cul u ally dis an ma ke s, hey o en s uggle
o econcile hei es ablished p ac ices wi h he new ones equi ed o
e ec i e inno a ion. This di icul y in aligning o ganiza ional unlea n-
ing wi h di e se in e na ional p ac ices u he weakens he ela ionship
be ween unlea ning and explo a o y inno a ion, pa icula ly in SMEs
ha ope a e ac oss mul iple cul u ally and ins i u ionally dis an
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
5
ma ke s (Yo uk e al., 2021). The ension be ween main aining es ab-
lished p ac ices and adap ing o new, un amilia en i onmen s o en
leads o a comp omise ha hinde s he i m’s abili y o ully engage in
he unlea ning necessa y o adical inno a ion.
As SMEs con inue o in e na ionalize, hey end o de elop ou ines
and p ac ices aimed a ensu ing s abili y and consis ency ac oss
di e en ma ke s. While hese ou ines a e essen ial o main aining
ope a ional cohe ence, hey can also lead o o ganiza ional ine ia,
making i di icul o implemen he changes necessa y o unlea ning.
O ganiza ional ine ia, de ined as he esis ance o change ha o gani-
za ions expe ience as hey become mo e es ablished (Hannan &
F eeman, 1984), poses a signi ican challenge in highly in e na ional-
ized SMEs. The need o main ain consis en ope a ions ac oss di e se
ma ke s can in ensi y his esis ance, ul ima ely weakening he ela-
ionship be ween o ganiza ional unlea ning and explo a o y inno a ion.
As i ms become mo e ocused on main aining s abili y, hey may
neglec he expe imen a ion equi ed o new, po en ially adical in-
no a ions (Ve meulen & Ba kema, 2002).
Fu he mo e, in e na ionaliza ion o en necessi a es he lea ning o
new p ac ices and he adap a ion o di e en ma ke condi ions. How-
e e , his ocus on lea ning new in e na ional p ac ices can pa adoxi-
cally inhibi he p ocess o unlea ning old p ac ices, pa icula ly in SMEs
ha ha e expe ienced success in hei home ma ke s bu now ace he
challenge o adap ing o in e na ional con ex s (T an & T uong, 2022).
The dual ocus on lea ning new p ac ices while main aining success ul
home ma ke p ac ices c ea es a ension whe e he need o lea n un-
de mines he p ocess o unlea ning. This pa adox can weaken he ela-
ionship be ween o ganiza ional unlea ning and explo a o y inno a ion,
as SMEs s uggle o balance he demands o adap ing o new ma ke s
wi h he need o inno a e h ough unlea ning (Cohen & Le in hal,
1990).
In summa y, he posi i e ela ionship be ween o ganiza ional
unlea ning and explo a o y inno a ion is mode a ed by he deg ee o
in e na ionaliza ion in SMEs. As hese i ms expand hei ope a ions
in e na ionally, a ious ac o s—including inc eased complexi y,
esou ce alloca ion demands, cul u al and ins i u ional ba ie s, o ga-
niza ional ine ia, and he pa adox o lea ning and unlea -
ning—con ibu e o a weakening o his ela ionship. These challenges
make i inc easingly di icul o SMEs o e ec i ely engage in he
unlea ning p ocesses necessa y o d i e explo a o y inno a ion, pa ic-
ula ly in highly in e na ionalized con ex s. Insigh s om dynamic ca-
pabili ies heo y highligh he delica e balance ha in e na ionalized
SMEs mus main ain be ween ope a ional s abili y and he pu sui o
inno a i e b eak h oughs h ough unlea ning. Thus, we p opose he
ollowing hypo hesis:
Hypo hesis 5. The posi i e ela ionship be ween o ganiza ional
unlea ning and explo a o y inno a ion is mode a ed by he deg ee o
in e na ionaliza ion o SMEs.
Based on he a gumen s p esen ed, i can be p edic ed ha he e will
be a mode a ed media ion p ocess (Hayes & Rockwood, 2020). The
co ela ion be ween he abili y o inno a e oge he and he abili y o
explo e new ideas is a ec ed by he le el o in e na ionaliza ion. This
ac s as a con ingency ac o ha mode a es he indi ec posi i e link
h ough he p ocess o unlea ning wi hin he o ganiza ion, as sugges ed
by Hayes (2018). The e o e, we p opose ha o ganiza ions wi h a high
deg ee o in e na ionaliza ion exhibi a obus in e se co ela ion be-
ween join inno a ion capabili ies and explo a o y inno a ion.
The sugges ed in e ac ion sugges s ha he ela ionship be ween
join inno a ion capabili ies and explo a o y inno a ion h ough o ga-
niza ional unlea ning is in luenced by he combined e ec o o ganiza-
ional unlea ning and he le el o in e na ionaliza ion. G ea e le els o
o ganiza ional unlea ning, combined wi h lowe le els o in e na ion-
aliza ion, s eng hen he posi i e impac o join inno a ion capabili ies
on explo a o y inno a ion. Reduced le els o in e na ionaliza ion
enhance he execu ion and u iliza ion o o ganiza ional unlea ning,
leading o imp o ed ou comes in explo a o y inno a ion. Highe le els
o in e na ionaliza ion may weaken he connec ion be ween join
inno a ion capabili ies and explo a o y inno a ion h ough o ganiza-
ional unlea ning. O ganiza ions wi h a high le el o in e na ionaliza-
ion may encoun e di icul ies in e ec i ely in eg a ing join inno a i e
ideas in o success ul explo a o y inno a ions.
We p opose ha he in e ac ion ac s as a mode a o , in luencing he
indi ec posi i e connec ion be ween join inno a ion capabili ies and
explo a o y inno a ion by s eng hening o ganiza ional unlea ning.
This ela ionship is pa icula ly p onounced a lowe le els o in e ac-
ion. We p opose:
Hypo hesis 6. The indi ec posi i e ela ionship be ween join inno-
a ion capabili ies and explo a o y inno a ion, media ed by o ganiza-
ional unlea ning, is in luenced by he le el o in e na ionaliza ion in
SMEs.
Me hods
Resea ch design
To e alua e he in e connec edness depic ed in Fig. 1, a sample o
450 logis ics and gene al manage s om he lis o SMEs associa ed wi h
a esea ch g oup a a esea ch-in ensi e uni e si y in he UAE was
chosen and con ac ed. As a esul o his ini ial sc eening, a o al o 325
logis ics/gene al manage s chose o pa icipa e in his s udy. A o al o
300 esponden s we e ga he ed om 150 en e p ises si ua ed in he
emi a es o Abu Dhabi, Dubai, and Sha jah in he Uni ed A ab Emi a es
(UAE). The pa icipa ing companies ange in size om 2 o 5000 ull-
ime employees, wi h an a e age o 121 employees. Ou o he o al o
151 i ms, 24 a e engaged in he manu ac u ing sec o , accoun ing o
16% o he o al. The se ice indus y is ep esen ed by 42 i ms, making
up 28% o he o al. The e ail sec o has he highes numbe o i ms,
wi h 78 companies, cons i u ing 52% o he o al. The emaining 6 i ms,
which make up 4% o he o al, ope a e in o he indus ies. The mean
i m age was 11.75 yea s; he younges i m was me ely one yea old,
while he oldes had been ope a ional o 33.4 yea s.
The esea ch eam, which included a ull- ime esea ch assis an ,
conduc ed da a collec ion by isi ing each SME o dis ibu e he su ey
ins umen s. Da a collec ion began in Ap il 2018 and ended in
Sep embe 2018. To asce ain he eligibili y o he pa icipan s o ou
a ge demog aphic, ini ial con ac was made ia elephone. Subse-
quen ly, wo se s o ques ionnai es, which se ed as he su ey in-
s umen s, we e dis ibu ed o each business. Th oughou his pe iod,
he esponden s we e pe iodically con ac ed and p omp ed o inalize
he su ey. Bo h he gene al manage and a senio logis ics manage
employed wi hin he en e p ise we e adminis e ed he same su ey in-
s umen . We ob ained da a om bo h o hese esponden ca ego ies in
o de o a oid he issues ypically linked o single-sou ce bias (Zacca,
Dayan, & Ah ens, 2015; Dayan e al., 2016). Join inno a ion capabil-
i ies was assessed using da a collec ed om logis ic manage s, as hey
we e deemed o possess mo e objec i e and dependable in o ma ion
ega ding hese a iables. The measu emen o explo a o y inno a ion,
o ganiza ional unlea ning, and he deg ee o in e na ionaliza ion was
based on he esponses p o ided by gene al manage s. Gene al man-
age s we e chosen o hei mac o pe spec i e, which makes hem mo e
likely han logis ic manage s o ha e a b oade iew o he o ganiza ion.
The su ey ins umen s we e ansla ed om English o A abic by a
na i e A abic speake who is also p o icien in English. Subsequen ly, a
di e en bilingual speake ansla ed he su ey back in o English.
Subsequen ly, he esea ch eam and ansla o s implemen ed he
equi ed modi ica ions in acco dance wi h he indings o Dayan e al.’s
s udy (2016). Be o e collec ing da a, we ca ied ou a sequence o p e-
limina y es s. A g oup o wel e andomly chosen senio manage s
e alua ed he subs ance and signi icance o he i ems. A e wa ds, we
eached ou o ou academics om ele an ields o ob ain hei
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
6
eedback on he usabili y o he scale i ems. Subsequen ly, we made
e isions o he ques ionnai es based on hei commen s. The p ocedu es
we e conduc ed o gua an ee he cla i y and p ecision o he ins umen s
(Dayan, Zacca, & Di Benede o, 2013; Zacca, Dayan, & Ah ens, 2015).
Measu es
The deg ee o In e na ionaliza ion has been u ilized as a measu e o
assess he ex en o which businesses ha e expanded hei ope a ions
in e na ionally (Reube & Fische , 1997; Sulli an, 1994). P io esea ch
in he con ex o SMEs has ypically assessed he deg ee o in e na-
ionaliza ion using a single measu e, speci ically he a io o a i m’s
expo sales o i s o al sales (Ren e al., 2015). The excessi ely simplis ic
me hod o measu ing he deg ee o in e na ionaliza ion was iden i ied as
a con ibu ing ac o o he inconsis encies obse ed in a ious s udies
wi hin he ield o in e na ional business li e a u e (Panga ka , 2008).
We con end ha he concep o in e na ionaliza ion is excessi ely
in ica e o be quan i ied by a soli a y ac o . Al e na i ely, i should be
assessed using a amewo k ha encompasses a ious dimensions o he
le el o in e na ionaliza ion. While p e ious s udies (Reube & Fische ,
1997; Sulli an, 1994) ha e de eloped cons uc s o he con ex o la ge
mul ina ional companies, hese measu es a e no app op ia e o SMEs
(Genc e al., 2019). The a ionale behind his is ha ce ain componen s
o he cu en amewo ks may no be applicable o SMEs, especially in
de eloping economies. Fo ins ance, inqui ies ela ed o o eign di ec
in es men o he coun o o eign s a may no be pe inen (Reube &
Fische , 1997). In his s udy, a composi e o ce ain elemen s om
es ablished cons uc s (Manolo a e al., 2002; Ruzzie e al., 2007;
Sulli an, 1994) ha a e ele an o he SME con ex we e employed o
assess a ious aspec s o SME in e na ionaliza ion. The o ma i e mea-
su emen i ems u ilized o assess he deg ee o in e na ionaliza ion
cons uc in ou s udy encompass 1) he du a ion o in e na ionaliza ion;
2) he mone a y alue o expo s; 3) he le el o in e na ional expe ience
possessed by managemen ; 4) he ex en o global ision; 5) he
geog aphical sepa a ion be ween en i ies; 6) he p opo ion o o eign
sales in ela ion o o al sales (FSTS); and 7) he deg ee o impo
in ensi y.
We u ilized en e lec i e measu emen i ems pe aining o h ee
cons uc s o assess he p oposed amewo k. These cons uc s we e
modi ied om es ablished esea ch o sui he UAE con ex . The mea-
su emen i ems o join inno a ion capabili ies we e de i ed om
Ma in and G bac (2003), whe eas hose o o ganiza ional unlea ning
and explo a o y inno a ion we e modi ied om Leal-Rod íguez e al.
(2015) and He and Wong (2004), espec i ely. We u ilized a i e-poin
Like - ype scale o hese assessmen s, wi h a a ing o “1
″
indica ing
“s ongly disag ee” and “5
″
deno ing “s ongly ag ee.” A 5-poin
Like - ype scale was employed due o i s use - iendliness and he
p esence o a neu al midpoin , enabling esponden s o adop a neu al
posi ion by selec ing he ’Nei he Disag ee no Ag ee (NDNA)’ op ion. I
is ega ded as ha ing an op imal balance be ween p o iding su icien
esponse op ions o enable signi ican dis inc ions in he esponses and
p e en ing excessi e g anula i y ha could esul in con usion o
esponse a igue. The u iliza ion o his p e alen 5-poin Like - ype
scale will enable subsequen esea ch o compa e hei esul s and
indings wi h his s udy. The Appendix includes a lis o all e lec i e
measu emen i ems.
In o de o isola e he e ec s o ce ain ac o s on he dependen
a iables (o ganiza ional unlea ning and explo a o y inno a ion), we
employed con ol a iables such as i m size, i m age, and en u e li e
cycle. Based on p e ious esea ch (e.g.,Sø ensen & S ua , 2000), which
has ound a connec ion be ween a company’s age, i s abili y o collab-
o a e on inno a ion, and i s endency o engage in explo a o y inno a-
ion, he s udy con olled o he a iable o i m age. Fi m age was
de e mined by calcula ing i s na u al loga i hm. In o de o isola e he
impac o economies and diseconomies o scale (Bain, 1968), we
adjus ed he dependen a iables o i m size, which was measu ed as
he na u al loga i hm o o al asse s. We also accoun ed o he s age o
he en u e’s li e cycle. In o de o conside he a ious s ages o a
en u e’s li e cycle and mi iga e any po en ial impac s, we eques ed he
esponden s o indica e he speci ic s age o hei en u e (s a up,
g ow h, ma u i y, o decline). To minimize he common me hod bias
e ec , we ook measu es o con ol he dependen a iables o nega i e
a ec i i y bias (Wa son e al., 1988), which is no heo e ically ela ed
o any o he a iables used in ou s udy. The i ems o he nega i e
a ec i i y scale, wi h a a ing scale anging om 1 (s ongly disag ee) o
5 (s ongly ag ee), include he ollowing s a emen s: "Mino se backs
end o i i a e me oo much", "I o en ge i i a ed a li le annoyances",
and "The e a e days when I am ’on edge’ all o he ime" (Yannopoulos
e al., 2012). In line wi h Flynn, Pagell, and Fuga e’s (2018) app oach,
we aim o add ess common me hod bias conce ns by inco po a ing he
nega i e a ec i i y bias scale as a con ol a iable.
Da a analyses
The da a analyses we e pe o med using Sma PLS 4.1.0.3, a so -
wa e de eloped by Ringle, Wende, and Becke in 2024. The hypo heses
we e e alua ed h ough p ocess p ocedu e analyses u ilizing 5000
boo s apped samples. The analysis u ilized bias-co ec ed and accele -
a ed 95% con idence in e als (CIs) wi h cen e ed a iables, in acco -
dance wi h he ecommenda ions o Aiken and Wes (1991). The
Sma PLS-P ocess was used o calcula e boo s apped con idence in-
e als (CIs) o e alua ing he media ion e ec (Hayes, 2018). Boo -
s ap me hods a e conside ed mo e e ec i e han al e na i e ools, such
as he Sobel es , o conduc ing media ion analysis. We pe o med a
boo s ap analysis wi h 5000 i e a ions and bias-co ela ed es ima es, as
ad ised by Hayes (2018). The media ion e ec s we e conside ed s a-
is ically signi ican i he con idence in e als (CIs) o bo h he lowe
and uppe bounds did no include ze o.
Resul s
Assessmen o common me hod a iance
Va ious me hodologies we e employed o ackle he p oblems asso-
cia ed wi h common me hod a iance bias. To mi iga e his bias, we
u ilized di e se da a collec ion me hodologies. To ensu e he p o ec ion
o pe sonal in o ma ion om unau ho ized access, he su ey equi ed
esponden s o comple e i anonymously om he e y beginning. The
su ey ques ions clea ly indica ed ha he e is no de ini i e o inco ec
esponse o hese inqui ies. To a oid any ambigui y, Podsako e al.
(2003) ad ised agains using ques ions ha include mul iple concep s o
in ica e language. A e collec ing he da a, we assessed he exis ence o
common me hod a iance by employing a ious me hodologies. Pod-
sako e al. (2003) pe o med a compa a i e analysis o wo measu e-
men models using he pa ial leas squa es me hod. The ini ial
measu emen model included all ea u es, while he subsequen model
added an ex a one. The s a is ics showed ha he pa h coe icien s we e
no s a is ically signi ican .
Cons uc alidi y
To assess con e gen alidi y, he a e age a iance ex ac ed (AVE)
alue was de e mined by calcula ing he mean-squa ed loadings o he
i ems on each scale. The minimum accep able h eshold o A e age
Va iance Ex ac ed (AVE) is 0.5. This alue ep esen s he ex en o
which he cons uc accoun s o a minimum o 50% o he a iabili y in
he indica o s on he scale, as speci ied by Fo nell & La cke in, 1981.
The app oach used in his s udy in ol ed calcula ing he
he e o ai -mono ai (HTMT) a io. The a io in ques ion unc ions as a
measu e o he ela ionships be ween all su ey i ems, ac oss a ious
ca ego ies, in ela ion o he co ela ion among i ems ha a e classi ied
as belonging o he same ca ego y. The HTMT alues should be less han
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
7
0.85, indica ing su icien di e en ia ion be ween he cons uc s, as
ecommended by Hensele e al., Ringle and Sa s ed (2015). The HTMT
a io analysis esul s (see Table 1) indica e ha he da a demons a es
sa is ac o y disc iminan alidi y.
Toge he , hese me ics o e ample e idence ha a e lec i e mea-
su emen model, comp ising ou la en cons uc s, accu a ely ep e-
sen s he da a. The eliabili y es s ha e con i med ha he model mee s
he c i e ia o i em eliabili y, in e nal consis ency eliabili y, con e -
gen alidi y, and disc iminan alidi y. Hence, he model possesses he
capaci y o add ess he a o emen ioned esea ch inqui ies. A e wa ds,
we u ilized he a iance in la ion ac o (VIF) o e alua e he exis ence
o mul icollinea i y among he cons uc s, as ecommended by Wilden
e al. (2013). The VIF alues o he e lec i e measu es anged om
1.086 o 1.743, which is well below he accep able h eshold o 5 (Hai
e al., 2010). The esul s demons a e ha e e y a iable has a high le el
o s a is ical signi icance, he eby con i ming ha he measu emen
model is well-sui ed o he da a (Table 2).
Table 1 demons a es he absence o mul icollinea i y, as none o he
ze o-o de Pea son co ela ion coe icien s su passes he speci ied
h eshold 0.90. The ela ionship be ween o ganiza ional unlea ning and
explo a o y inno a ion showed he s onges co ela ion ( =0.648),
ollowed by he co ela ion be ween o ganiza ional unlea ning and
inno a ion capabili ies ( =0.450). Fo all cases, hese co ela ions a e
lowe han he squa e oo o he AVE (shown on he diagonal), hus
con i ming he dis inc i eness o hese cons uc s. The a iable being
s udied, se ice inno a ion, shows mode a e co ela ions wi h he main
concep s o he esea ch.
Findings
Table 3 p esen s he ze o-o de co ela ion coe icien s and
desc ip i e s a is ics o he s udy a iables. On he o he hand, Table 2
displays he media ion esul s p oduced by he Sma PLS-P ocess.
Empi ical e idence suppo s Hypo hesis 1, as we disco e ed a obus
and s a is ically signi ican posi i e ela ionship (β =0.370, p <.001)
be ween join inno a ion capabili ies and o ganiza ional unlea ning. We
ga he ed empi ical e idence ha con i ms he connec ion be ween
o ganiza ional unlea ning and explo a o y inno a ion (Hypo hesis 2).
This is e iden in he signi ican and posi i e ela ionship we disco e ed
(β =0.524, p <.001). The indi ec ela ionship be ween join inno a ion
capabili ies and explo a o y inno a ion, media ed by o ganiza ional
unlea ning, had a signi ican e ec size o 0.194. The con idence in e al
[.119, 0.297] did no include 0, p o iding suppo o he media ion
e ec p oposed in Hypo hesis 3.
In ou heo e ical discussions, we also hypo hesized ha he ex en o
in e na ionaliza ion has a nega i e mode a ing e ec on he ela ionship
be ween join inno a ion capabili ies and o ganiza ional unlea ning
(Hypo hesis 4), as well as be ween o ganiza ional unlea ning and
explo a o y inno a ion (Hypo hesis 5). Table 4 shows ha he join
inno a ion capabili ies ×deg ee o in e na ionaliza ion e m has a
nega i e, weak signi ican e ec (β = − 0.163, p <.10 [0.058]) on
o ganiza ional unlea ning. Addi ionally, he o ganiza ional unlea ning
×deg ee o in e na ionaliza ion e m has a nega i e, mode a e signi i-
can e ec (β = − 0.272, p <.05) on explo a o y inno a ion. Based on
he P ocess esul s, i was ound ha he connec ion be ween join
inno a ion capabili ies and o ganiza ional unlea ning became mo e
p onounced a lowe le els o he deg ee o in e na ionaliza ion. Spe-
ci ically, he co ela ion coe icien s we e 0.442 a one s anda d de ia-
ion below he mean, 0.337 a he mean, and 0.231 a one s anda d
de ia ion abo e he mean. This inding suppo s Hypo hesis 4. Simila ly,
he co ela ion be ween o ganiza ional unlea ning and explo a o y
inno a ion was ound o be s onge when he deg ee o in e na ional-
iza ion was lowe . Speci ically, he co ela ion coe icien was 0.625 a
one s anda d de ia ion below he mean, 0.448 a he mean, and 0.270 a
one s anda d de ia ion abo e he mean. These indings suppo Hy-
po hesis 5. Fig. 2 and 3 shows a isual ep esen a ion o his analysis.
A di ec es was conduc ed o examine he p oposed mode a ed
media ion dynamic (Hypo hesis 6). This dynamic sugges s ha he
ex en o in e na ionaliza ion weakens he ole o o ganiza ional
unlea ning in explaining he ela ionship be ween join inno a ion ca-
pabili ies and explo a o y inno a ion (Hayes, 2018). The esul s showed
ha he s eng h o he indi ec ela ionship be ween join inno a ion
capabili ies and explo a o y inno a ion dec eased as he deg ee o
in e na ionaliza ion inc eased. Mo e p ecisely, he indi ec e ec s a -
ied om 0.276 when he mode a o was one s anda d de ia ion below
he a e age, o 0.151 a he a e age, o 0.062 when he mode a o was
one s anda d de ia ion abo e he a e age. The con idence in e als
(CIs) o he deg ees o in e na ionaliza ion did no encompass he alue
o 0 a all le els ([.164; 0.412; o one s anda d de ia ion below he
mean], [.085; 0.251; a he mean], and [.011; 0.178; one s anda d de-
ia ion abo e i ]).
The le el o in e na ionaliza ion educed he posi i e indi ec
connec ion be ween join inno a ion capabili ies and explo a o y
inno a ion, due o o ganiza ional unlea ning. This inding suppo s
Hypo hesis 6 and aligns wi h ou o e all concep ual amewo k.
Discussions
Theo e ical con ibu ions
This s udy esponds o he nume ous calls o u u e esea ch on he
in e na ionaliza ion o SMEs in eme ging economies (e.g., Du e al.,
2023; Genc e al., 2019). While SMEs a e ca alys s o economic g ow h,
pa icula ly in eme ging ma ke s, hei con ibu ion o alue added is
ela i ely limi ed. The lack o inno a ion in SMEs ela i e o la ge co -
po a ions may be a signi ican ac o con ibu ing o his issue. The e-
o e, enhancing he inno a ion pe o mance o SMEs is c i ical o bo h
hese en e p ises and he economies o eme ging na ions (Hilme sson
e al., 2023). Con e sely, in e na ionaliza ion has p oli e a ed among
SMEs, a ibu ed o ad ancemen s in communica ion echnologies and
educed anspo a ion cos s. In eme ging ma ke s, SMEs a e p og es-
si ely engaging in in e na ional ac i i ies daily, aided by go e nmen
suppo (Pas elakos e al., 2023).
Despi e he esea ch ega ding he ela ionship be ween in e na-
ionaliza ion and inno a ion (e.g., E e s e al., 2023; Hilme sson e al.,
2023), he speci ic dynamic capabili ies ha i ms cul i a e h ough
hei in e na ionaliza ion endea o s, which subsequen ly enhance hei
inno a i e capaci y, emain ambiguous. Unde s anding hese gene a i e
mechanisms equi es analyzing he media o s and mode a o s essen ial
o enhancing he impac o join inno a ion capabili ies on he
explo a o y inno a ion pe o mance o SMEs du ing hei in e na ion-
aliza ion p ocess. These mechanisms ha e signi ican business implica-
ions conce ning he ole o in e na ionaliza ion in gene a ing
inno a i e ou comes. We in es iga e his gap by inqui ing: Wha
mechanisms enable i ms o ans o m hei collabo a i e inno a ion
capabili ies in o angible inno a ion ou comes? The esponse o his
inqui y holds conside able consequences o SMEs in de eloping ma -
ke s. This s udy modeled he deg ee o in e na ionaliza ion as a
mode a o in he ela ionship among join inno a ion capabili ies,
o ganiza ional unlea ning, and explo a o y inno a ion. Subsequen ly,
we e alua ed he p oposed model wi hin he amewo k o an eme ging
Table 1
He e oi -mona ai a io (HTMT).
1 2 3 4 5 6
1 Fi m size
2 Fi m age 0.335
3 Ven u e li e cycle 0.11 0.407
4 Join inno a ion capabili ies 0.039 0.131 0.076
5 O ganiza ional unlea ning 0.245 0.271 0.083 0.516
6 Explo a o y inno a ion 0.171 0.337 0.07 0.471 0.745
M. Dayan e al.
Jou nal o Inno a ion & Knowledge 9 (2024) 100614
8
