Tracking the Long-Term Trajectory of International New Ventures’ Innovation: The moderating role of regional multi-cluster diversity

Abstract

The purpose of this article is to study how the innovation performance of international new ventures (INVs) evolves over time, and how multi-cluster diversity as an external environment moderates INVs’ innovation performance. We employed the latent growth curve modeling (LGCM) approach to analyze 5,744 INVs from 21 cities in the Guangdong Province (China). We found that INVs’ innovation follows a positive linear trend over time, and that multi-cluster diversity plays a positive moderating role. Our findings enrich international entrepreneurship by showing the long-term effect of early internationalization on INVs’ innovation under a multi-cluster environment.