Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

Jie Wu; Chengqi Wang; Junjie Hong; Panagiotis Piperopoulos; Shuaihe Zhuo

doi:10.1016/j.jwb.2015.09.002

Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

Jie Wu, Chengqi Wang, Junjie Hong^*, Panagiotis Piperopoulos, Shuaihe Zhuo

^*Corresponding author for this work

Business Management

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

192 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	251-263
Number of pages	13
Journal	Journal of World Business
Volume	51
Issue number	2
Early online date	18 Oct 2015
DOIs	https://doi.org/10.1016/j.jwb.2015.09.002
Publication status	Published - Feb 2016

Bibliographical note

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.

Keywords

Absorptive capacity
Geographic diversification
Innovation performance
Institutional environment
Internationalization
State ownership

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.jwb.2015.09.002Licence: Unspecified

Cite this

@article{1d966b2a22984a639db721ce54e3fdfd,

title = "Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development",

abstract = "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.",

keywords = "Absorptive capacity, Geographic diversification, Innovation performance, Institutional environment, Internationalization, State ownership",

author = "Jie Wu and Chengqi Wang and Junjie Hong and Panagiotis Piperopoulos and Shuaihe Zhuo",

note = "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.",

year = "2016",

month = feb,

doi = "10.1016/j.jwb.2015.09.002",

language = "English",

volume = "51",

pages = "251--263",

journal = "Journal of World Business",

issn = "1090-9516",

publisher = "Elsevier Inc.",

number = "2",

}

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

SN - 1090-9516

VL - 51

SP - 251

EP - 263

JO - Journal of World Business

JF - Journal of World Business

IS - 2

ER -

Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Jie Wu

Cite this

Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Profiles

Jie Wu

Cite this