Firms operating in international markets tend to be less innovative because they are more concerned with expanding their existing competitive advantage to new locations than in developing innovations.

Question

Quizplus · Accepted Answer

This statement is not completely true. While international expansion may divert some resources away from innovation, firms operating in international markets also face increased competition and pressure to stand out from competitors through innovation. Additionally, entering new markets may also require firms to innovate in order to meet the specific needs and preferences of new customers. Therefore, it cannot be generalized that firms operating in international markets are less innovative.

Firms Operating in International Markets Tend to Be Less Innovative