Foreign direct investment; Productivity spillovers; Learning by exporting
This study investigates whether an internationalization strategy affects product innovation in ASEAN. In addition, we examine whether organizational innovation moderates the internationalization's effects on product innovation in Association of South East Asian Nation (ASEAN). The empirical analysis is performed using data from the World Bank's Enterprise Surveys and different novel ordinal regression models as well as the propensity score matching (PSM) technique to partially address the endogeneity concern. The results indicate a positive direct effect on product innovation by two modes of internationalization that we analyze (intermediate input imports and exports) and as well by organizational innovation. Furthermore, organizational innovation moderates the internationalization–innovation relationship positively.