Legacy-Driven Capabilities Theory for Innovation Management in Post-Transition Economies: Evidence from Kazakhstan

Abstract

Abstract:This study explores the challenges faced by firms in Kazakhstan in managing innovation within the context of an emerging economy in transition. Through qualitative analysis of interviews and focus group discussions, the research uncovers key themes related to the demand for innovative products and services, the impact of the crisis, the role of technology transfer, the state of R&D capabilities, and the importance of organizational adaptability. The findings bring to the foreground the significance of historical legacies in shaping innovation management, indicating the need for firms to strategically reconfigure their inherited resources and capabilities. Building on this insight, the study develops the Legacy-Driven Capabilities Theory (LDCT), which explains how firms in post-transition economies draw upon, reinterpret, and modify their inherited routines and knowledge systems in the pursuit of innovation. LDCT demonstrates both the enabling and restrictive aspects of Soviet-era legacies and outlines the processes through which firms transform these inherited conditions into contemporary innovation capacities. The study thus proposes the LDCT as a framework for addressing the unique obstacles encountered by organizations in post-transition economies. By integrating empirical evidence with this theoretical perspective, the research offers a refined understanding of how historical context continues to influence innovation paths.