The Role of Innovation Ecosystems in Influencing an MNCs' Adoption to Emerging Industries A qualitative case study of local market contexts

Abstract

The rapid changes in the global business environment create challenges in coordinating strategic activities, compelling MNCs to maintain a continuous focus on innovation to stay competitive. This study investigates how local innovation ecosystems influence the adoption strategies of MNCs in emerging industries. By incorporating perspectives from innovation ecosystem and liability of outsidership literature, this study aims to provide further insights on how MNCs can adapt and build relationships to achieve central positions within diverse network structures. By employing an abductive methodology through a single case study, this research analyses how Volvo Group navigates the evolving electric truck innovation ecosystem in Norway and the US. The key findings highlight the crucial role of the local innovation ecosystem's lifecycle phase, significantly influencing technological maturity, receptivity to innovations, and network interconnections, all impacting an MNC's strategic implications and adoption processes. MNCs should strive to obtain a central position within innovation ecosystems, and form linkages to other actors to access resources and knowledge that can leverage innovative capabilities and facilitate value co-creation. This study provides a strategic framework for MNCs to navigate emerging industries by adapting strategies based on identified maturity of local innovation ecosystems and collaborative efforts within the network across geographical dimensions.