Central European Business Review 2022, 11(4):25-46 | DOI: 10.18267/j.cebr.302

Glocalisation and Readiness for Open Innovation: The Role of Institutional Support in Transitional Economies

Maja Bašić ORCID...1
1 University of Zagreb, Faculty of Economics and Business, Department of International Economics, Zagreb, Croatia, mbasic1@net.efzg.hr

Studies on institutional support for the internationalisation of firms from transitional economies are inconclusive. This research contributes to the studies of institutional support in cases of firms with complementary innovation – internationalisation strategies. Mixed method research is used to support quantitative structural modelling. It uses qualitative interview data in combination with quantitative data gathered by a survey questionnaire on a sample of 88 telecommunications firms from the Croatia economy the year after it joined the European Union (2014). SmartPLS model is used to analyse data obtained through a questionnaire survey. The results show that institutions can assist firms in recombining their processes when they offer concrete product development support and, to a lesser extent, marketing support. The recombination of firms’ processes, i.e. its ability to openly innovate, leads to significantly better globalised-localised (glocal) financial and marketing performance, which results are robust. The results are inconclusive in the case of glocal growth performance. The structural model assessed the effect of readiness for open innovation on glocal growth as positive and insignificant, while the robustness check found it to be positive and significant.
Implications for Central European audience: The value of this study is twofold. Firstly, it provides support and direction according to which institutional support could be directed to strengthen the internationalisation effort of the incumbent industry from transitional Central European economy that has transformed from the socialist to a market economy and undergone a process of joining the European Union. Secondly, it shows managers weak spots in institutional support and enables them to mitigate them quicker by finding similar support either outside of the firm on international markets or by employing highly qualified individuals.

Keywords: institutional support; open innovation; globalisation-localisation; telecommunications; transitional economies
JEL classification: O30, P20, P33

Received: August 23, 2021; Revised: October 27, 2021; Accepted: December 10, 2021; Prepublished online: February 23, 2022; Published: September 19, 2022  Show citation

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Bašić, M. (2022). Glocalisation and Readiness for Open Innovation: The Role of Institutional Support in Transitional Economies. Central European Business Review, 11(4), 25-46. doi: 10.18267/j.cebr.302
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