Diverse Institutional Environments and Product Innovation of Emerging Market Firms

Jie Wu*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

34 Citations (Scopus)

Abstract

• This study unbundled institutional environment into two distinct aspects: institutional distance (the degree of dissimilarity between the institutional environment of a firm's home country and an economy into which it expands) and institutional diversity (the variety of all the institutional environments to which a firm is exposed), and related them to product innovation performance of emerging market firms. • Data on 917 Chinese manufacturing firms in multiple industries over 3 years was analyzed. • The results show a positive relationship between institutional distance and product innovation success. An inverted U-shaped relationship was found between the institutional diversity of a firm's foreign markets and its product innovation success.

Original languageEnglish
Pages (from-to)39-59
Number of pages21
JournalManagement International Review
Volume53
Issue number1
Early online date16 Jan 2013
DOIs
Publication statusPublished - 28 Feb 2013

Keywords

  • China
  • Emerging markets
  • Institutional distance
  • Institutional diversity
  • Institutional environments
  • Product innovation

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