A contingent view of institutional environment, firm capability, and innovation performance of emerging multinational enterprises

Jie Wu; Zhenzhong Ma; Zhiyang Liu; Chun Kwok Lei

doi:10.1016/j.indmarman.2019.01.018

A contingent view of institutional environment, firm capability, and innovation performance of emerging multinational enterprises

Jie Wu, Zhenzhong Ma, Zhiyang Liu^*, Chun Kwok Lei

^*Corresponding author for this work

Business Management

Research output: Contribution to journal › Article › peer-review

42 Citations (Scopus)

Abstract

Drawing on the institution theory and the resource-based view of the firm, we propose a contingent view on the relationship between host market's institutional environment, emerging multinational enterprises (EMNEs)’ capability, and their innovation performance in the internationalization process. Specifically, we examine three key aspects of host market's institutional environment: market maturity, intellectual property right protection, and cultural distance, to investigate their distinct impact on innovation performance. We further explore how the effects of institutional environment is contingent upon firm-specific absorptive capability. The analyses of a panel data of 735 Chinese EMNEs provide support for this contingent view, and the findings of this study thus can help advance our understanding of the internationalization process of EMNEs.

Original language	English
Pages (from-to)	148-157
Number of pages	10
Journal	Industrial Marketing Management
Volume	82
Early online date	31 Jan 2019
DOIs	https://doi.org/10.1016/j.indmarman.2019.01.018
Publication status	Published - 31 Oct 2019

Bibliographical note

Acknowledgement:
The authors would like to acknowledge the financial support provided by University of Macau (No. MYRG 2016-00207-FBA/ MYRG2018-00171-FBA) and National Natural Science Foundation of China (No. 71728003).

Keywords

Absorptive capability
Cultural distance
Institutional theory
Intellectual property rights
Market maturity
Resource-based view of the firm

Access to Document

10.1016/j.indmarman.2019.01.018Licence: Unspecified

Cite this

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title = "A contingent view of institutional environment, firm capability, and innovation performance of emerging multinational enterprises",

abstract = "Drawing on the institution theory and the resource-based view of the firm, we propose a contingent view on the relationship between host market's institutional environment, emerging multinational enterprises (EMNEs){\textquoteright} capability, and their innovation performance in the internationalization process. Specifically, we examine three key aspects of host market's institutional environment: market maturity, intellectual property right protection, and cultural distance, to investigate their distinct impact on innovation performance. We further explore how the effects of institutional environment is contingent upon firm-specific absorptive capability. The analyses of a panel data of 735 Chinese EMNEs provide support for this contingent view, and the findings of this study thus can help advance our understanding of the internationalization process of EMNEs.",

keywords = "Absorptive capability, Cultural distance, Institutional theory, Intellectual property rights, Market maturity, Resource-based view of the firm",

author = "Jie Wu and Zhenzhong Ma and Zhiyang Liu and Lei, {Chun Kwok}",

note = "Acknowledgement: The authors would like to acknowledge the financial support provided by University of Macau (No. MYRG 2016-00207-FBA/ MYRG2018-00171-FBA) and National Natural Science Foundation of China (No. 71728003).",

year = "2019",

month = oct,

day = "31",

doi = "10.1016/j.indmarman.2019.01.018",

language = "English",

volume = "82",

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journal = "Industrial Marketing Management",

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AU - Wu, Jie

AU - Ma, Zhenzhong

AU - Liu, Zhiyang

AU - Lei, Chun Kwok

N1 - Acknowledgement: The authors would like to acknowledge the financial support provided by University of Macau (No. MYRG 2016-00207-FBA/ MYRG2018-00171-FBA) and National Natural Science Foundation of China (No. 71728003).

PY - 2019/10/31

Y1 - 2019/10/31

N2 - Drawing on the institution theory and the resource-based view of the firm, we propose a contingent view on the relationship between host market's institutional environment, emerging multinational enterprises (EMNEs)’ capability, and their innovation performance in the internationalization process. Specifically, we examine three key aspects of host market's institutional environment: market maturity, intellectual property right protection, and cultural distance, to investigate their distinct impact on innovation performance. We further explore how the effects of institutional environment is contingent upon firm-specific absorptive capability. The analyses of a panel data of 735 Chinese EMNEs provide support for this contingent view, and the findings of this study thus can help advance our understanding of the internationalization process of EMNEs.

AB - Drawing on the institution theory and the resource-based view of the firm, we propose a contingent view on the relationship between host market's institutional environment, emerging multinational enterprises (EMNEs)’ capability, and their innovation performance in the internationalization process. Specifically, we examine three key aspects of host market's institutional environment: market maturity, intellectual property right protection, and cultural distance, to investigate their distinct impact on innovation performance. We further explore how the effects of institutional environment is contingent upon firm-specific absorptive capability. The analyses of a panel data of 735 Chinese EMNEs provide support for this contingent view, and the findings of this study thus can help advance our understanding of the internationalization process of EMNEs.

KW - Absorptive capability

KW - Cultural distance

KW - Institutional theory

KW - Intellectual property rights

KW - Market maturity

KW - Resource-based view of the firm

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DO - 10.1016/j.indmarman.2019.01.018

M3 - Article

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SN - 0019-8501

VL - 82

SP - 148

EP - 157

JO - Industrial Marketing Management

JF - Industrial Marketing Management

ER -

A contingent view of institutional environment, firm capability, and innovation performance of emerging multinational enterprises

Abstract

Bibliographical note

Keywords

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Jie Wu

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A contingent view of institutional environment, firm capability, and innovation performance of emerging multinational enterprises

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Bibliographical note

Keywords

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Jie Wu

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