Process quality management and technological innovation revisited: a contingency perspective from an emerging market

Following the efficiency logic that argues process quality management provides an important basis for firms’ internal controls over their innovation activities, this study which is set within emerging markets extends the literature by shedding light upon an interesting phenomenon: employing process quality management reduces purchasing risk for potential customers by conveying valuable information regarding the firms who employ it (a symbolic logic argument). Emerging market firms who must accomplish accelerated learning internally while overcoming the external information asymmetry typically associated with domestically-based technological innovations have found a way to enhance originality and while also maintaining efficiency by successfully managing process quality subjective to local institutional quality.