TY - JOUR
T1 - Internationalization and innovation performance of emerging market enterprises
T2 - The role of host-country institutional development
AU - Wu, Jie
AU - Wang, Chengqi
AU - Hong, Junjie
AU - Piperopoulos, Panagiotis
AU - Zhuo, Shuaihe
N1 - Acknowledgements:
Chengqi Wang acknowledges financial support from National Natural Science Foundation of China (71563058), the British Academy (No. 510074) and the Joint Research Funding Scheme
between Ningbo City Government and Chinese Academy of Social Sciences. Junjie Hong acknowledges financial support from UIBE
(XK2014104), National Social Science fund of China (15AZD008), National Natural Science Foundation of China (71541001) and the
National Youth Top-notch Talent Support Program of China.
PY - 2016/2
Y1 - 2016/2
N2 - We examine how host-country institutional development influences innovation performance of internationalized emerging market enterprises (EMEs). Our panel-data analysis of Chinese EMEs shows that although host-country institutional development on average enhances innovation performance of the parent, such effects are more pronounced for EMEs with strong absorptive capacity and for those diversifying into a larger number of countries. Interestingly, EMEs with a higher level of state ownership gain more when entering countries with a lower level of institutional development. Our findings offer insights regarding how latecomer EMEs should configure their portfolio of subsidiaries in order to enhance innovation performance of their parent.
AB - We examine how host-country institutional development influences innovation performance of internationalized emerging market enterprises (EMEs). Our panel-data analysis of Chinese EMEs shows that although host-country institutional development on average enhances innovation performance of the parent, such effects are more pronounced for EMEs with strong absorptive capacity and for those diversifying into a larger number of countries. Interestingly, EMEs with a higher level of state ownership gain more when entering countries with a lower level of institutional development. Our findings offer insights regarding how latecomer EMEs should configure their portfolio of subsidiaries in order to enhance innovation performance of their parent.
KW - Absorptive capacity
KW - Geographic diversification
KW - Innovation performance
KW - Institutional environment
KW - Internationalization
KW - State ownership
UR - http://www.scopus.com/inward/record.url?scp=84953355148&partnerID=8YFLogxK
U2 - 10.1016/j.jwb.2015.09.002
DO - 10.1016/j.jwb.2015.09.002
M3 - Article
AN - SCOPUS:84953355148
VL - 51
SP - 251
EP - 263
JO - Journal of World Business
JF - Journal of World Business
SN - 1090-9516
IS - 2
ER -
