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 language | English |
|---|---|
| Pages (from-to) | 39-59 |
| Number of pages | 21 |
| Journal | Management International Review |
| Volume | 53 |
| Issue number | 1 |
| Early online date | 16 Jan 2013 |
| DOIs | |
| Publication status | Published - 28 Feb 2013 |
Keywords
- China
- Emerging markets
- Institutional distance
- Institutional diversity
- Institutional environments
- Product innovation
