[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-126749-en":3,"doc-seo-126749-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":27,"seo_description":14,"update_tm":28,"read_time":29},126749,962084928432,"Emma Wilson","https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d",8,"Research & Report","The Role of Internationalization Strategy in Fostering Innovation - An Empirical Study Using Machine Learning Technique","In today’s highly dynamic global market, firms increasingly conduct R&D internationally to enhance innovation and competitiveness. The study examines the relationship between firms’ internationalization strategy and innovation performance, proposing an inverse U-shaped pattern driven by concave benefits and convex costs. A machine-learning-based approach tests the hypothesis using a dictionary of internationalization constructed from highly cited research. The dictionary is applied to firms’ 10-K annual reports to create a strategy score, followed by panel data econometrics to analyze links with innovation outcomes.","Association for Information Systems  \nAIS Electronic Library (AISeL)  \nRising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies ICIS 2023  \nDigital Innovation, Transformation, and Entrepreneurship  \nDec 11th, 12:00 AM  \nThe Role of Internationalization Strategy in Fostering Innovation: An Empirical Study Using Machine Learning Technique  \nPascal Simon Mayer  \nUniversity of Muenster, [pascal.mayer@wiwi.uni-muenster.de](pascal.mayer@wiwi.uni-muenster.de)  \nThomas Schaeper  \nUniversity of Muenster, [thomas.schaeper@uni-muenster.de](thomas.schaeper@uni-muenster.de)  \nFollow this and additional works at: [https://aisel.aisnet.org/icis2023](https://aisel.aisnet.org/icis2023)  \nRecommended Citation  \nMayer, Pascal Simon and Schaeper, Thomas, \"The Role of Internationalization Strategy in Fostering Innovation: An Empirical Study Using Machine Learning Technique\" (2023) . Rising like a Phoenix:  \nEmerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies ICIS 2023. 8.  \n[https://aisel.aisnet.org/icis2023/diginnoventren/diginnoventren/8](https://aisel.aisnet.org/icis2023/diginnoventren/diginnoventren/8)  \nThis material is brought to you by the International Conference on Information Systems (ICIS) at AIS Electronic Library (AISeL) . It has been accepted for inclusion in Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies ICIS 2023 by an authorized administrator of AIS Electronic Library (AISeL) . For more information, please [contact](contact elibrary@aisnet.org)[ elibrary@aisnet.org](contact elibrary@aisnet.org).  \nThe Role of Internationalization Strategy in Fostering Innovation: An Empirical Study Using Machine Learning  \nShort Paper  \nPascal Mayer  \nInstitute for Organisational Economics, University of Münster Scharnhorststraße 100, 48151 Münster, Germany [Pascal.mayer@wiwi.uni-muenster.de](Pascal.mayer@wiwi.uni-muenster.de)  \nThomas Schäper  \nInstitute for Entrepreneurship University of Münster Geiststraße 24-26, 48151 Münster, Germany [thomas.schaeper@uni-muenster.de](thomas.schaeper@uni-muenster.de)  \nAbstract.  \nIn today’s highly dynamic global market, firms increasingly conduct R&D internationally to enhance their innovation and competitiveness. We analyze the relationship between firm internationalization strategy and innovation performance. We argue that the relationship is inverse U-shaped, due to concave returns and convex costs of firm internationalization regarding innovation performance. We test our hypothesis using a novel machine-learning technique and develop a dictionary on internationalization, based on the most-cited papers on firm internationalization. We then apply this dictionary to firms’ 10-K annual reports to obtain a unique score of each firm’s internationalization strategy and use panel data econometrics to analyze the relationship with innovation performance. The results support the hypothesis of an inverted U-shape relationship between firms’ internationalization strategy and innovation performance.  \nFurther tests substantiate the findings. Our study contributes to the literature on firm internationalization and firm innovation by identifying a trade-off in benefits and costs of firm internationalization.  \nKeywords: internationalization strategy, innovation performance, machine-learning, inverse U-shape  \nIntroduction  \nOn March 22nd 2023, the Future of Life Institute published an open letter with a call “to immediately pause for at least 6 months the training of AI systems more powerful than GPT-4”(Future of Life Institute 2023) . The letter was signed by plenty of influential figures in the tech industry, such as Elon Musk, CEO of SpaceX, Tesla, and Twitter, or Steve Wozniak, Co-founder of Apple. This development with both the excitement as well as fear of AI technologies such as Chat GPT is emblematic of the breakneck speed of development in the field of digital innovation. To","cbCaiifS8e6QHw7J","https://ap.wps.com/l/cbCaiifS8e6QHw7J","pdf",302640,1,10,"English","en",105,"# Introduction\n## Internationalization and innovation performance\n## Research gap in firm internationalization and innovation","[{\"question\":\"What relationship does the study propose between internationalization strategy and innovation performance?\",\"answer\":\"The study argues the relationship is inverse U-shaped, meaning innovation performance increases at first and then declines as internationalization strategy intensifies.\"},{\"question\":\"How is the internationalization strategy measured in the study?\",\"answer\":\"A machine-learning technique builds a dictionary of internationalization based on the most-cited papers, which is then applied to firms’ 10-K annual reports to generate a unique internationalization score.\"},{\"question\":\"Why is the inverse U-shaped relationship expected?\",\"answer\":\"The argument is that internationalization yields concave returns but also involves convex costs, creating a trade-off that generates the inverse U-shape.\"}]","The Role of Internationalization Strategy in Fostering Innovation - An Empirical Study Using Machine Learning Technique | PDF",1785934577,25,{"code":4,"msg":31,"data":32},"ok",{"site_id":24,"language":23,"slug":33,"title":13,"keywords":34,"description":14,"schema_data":35,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":28},"the-role-of-internationalization-strategy-in-fostering-innovation-an-empirical-study-using-machine-learning-technique","",{"@graph":36,"@context":85},[37,54,68],{"@type":38,"itemListElement":39},"BreadcrumbList",[40,44,48,51],{"item":41,"name":42,"@type":43,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":45,"name":46,"@type":43,"position":47},"https://docshare.wps.com/document/","Document",2,{"item":49,"name":12,"@type":43,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":43,"position":53},"https://docshare.wps.com/document/the-role-of-internationalization-strategy-in-fostering-innovation-an-empirical-study-using-machine-learning-technique/126749/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":23,"description":14,"dateModified":62,"datePublished":62,"encodingFormat":61,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":41,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-08-05",true,{"@type":65,"interactionType":66,"userInteractionCount":4},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What relationship does the study propose between internationalization strategy and innovation performance?","Question",{"text":75,"@type":76},"The study argues the relationship is inverse U-shaped, meaning innovation performance increases at first and then declines as internationalization strategy intensifies.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"How is the internationalization strategy measured in the study?",{"text":80,"@type":76},"A machine-learning technique builds a dictionary of internationalization based on the most-cited papers, which is then applied to firms’ 10-K annual reports to generate a unique internationalization score.",{"name":82,"@type":73,"acceptedAnswer":83},"Why is the inverse U-shaped relationship expected?",{"text":84,"@type":76},"The argument is that internationalization yields concave returns but also involves convex costs, creating a trade-off that generates the inverse U-shape.","https://schema.org",{"og:url":52,"og:type":87,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":89,"canonical":52},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,123,128,131,134],{"id":20,"doc_module":4,"doc_module_name":46,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":47,"doc_module":4,"doc_module_name":46,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":46,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":46,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":46,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":46,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":46,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":46,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":46,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":21,"doc_module":4,"doc_module_name":46,"category_name":132,"show_sort_weight":21,"slug":133},"Lifestyle","lifestyle",{"id":135,"doc_module":4,"doc_module_name":46,"category_name":136,"show_sort_weight":106,"slug":137},19,"General","general"]