The effects of political ties on innovation performance in China: Differences between central and local governments

2021 ◽  
Author(s):  
Jooyoung Kwak ◽  
Shih-Yi Chang ◽  
Meihui Jin
Keyword(s):  
Local Governments ◽  
Innovation Performance ◽  
Political Ties

Your network is your net worth: political ties and innovation performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Ali Raza ◽  
Abdul Waheed
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Equation Modeling ◽  
Unique Contribution ◽  
Content Type ◽  
Net Worth ◽  
Political Ties ◽  
The Impact

PurposeBased on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.Design/methodology/approachA hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.FindingsPartial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.Originality/valueDespite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.

Exploring the complementarity between product exports and foreign technology imports for innovation in emerging economic firms

2019 ◽  
Vol 53 (2) ◽  
pp. 224-256 ◽  
Author(s):  
Kui Wang ◽  
Wang Tao
Keyword(s):  
Synergistic Effect ◽  
Local Governments ◽  
Emerging Market ◽  
Innovation Performance ◽  
Learning Approaches ◽  
Learning Mechanism ◽  
Cross Border ◽  
Technology Import ◽  
Learning By Exporting ◽  
Positive Effect

Purpose The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging market firms’ innovation performance. In addition, this paper also seeks to search for contextual variables that affect this complementarity. Design/methodology/approach This study takes systems approach to examine complementarity, combining a “productivity” and an “adoption” approach. In addition, interaction approach is also used as robustness check. Findings The authors show that the positive effect of export activity on firms’ growth rate is higher for firms that also engage in technology import, and vice versa. Furthermore, they show that, Ceteris paribus, firms’ adoption of one cross-border learning mechanism (e.g. entering export markets) positively influences the adoption of the other (e.g. technology import). Moreover, this complementarity is only significant for firms from province with low level of marketization. Research limitations/implications This inconsistency about learning-by-exporting and technology import on innovation can be resolved, at least partially, by the complementarities perspective. This paper also reveals two mechanisms of learning-by-exporting: the indirect effect of export on innovation through increasing the likelihood of adoption decision of importing technology and enhancing the positive effect of technology imports. Practical implications The potential of combining the two strategies should not be ignored by managers. To improve regional competitiveness, local governments should try best to improve the efficiency of customs to help firms realize the synergistic effect of learning-by- exporting and learning-by-technology-importing. Originality/value This study first explores the positive complementarity between the two cross-border learning mechanism in sharping EEEs 2019 innovation performance and identifies the condition to realize the synergistic effect of learning-by-exporting and learning-by-technology-importing.

scholarly journals Effects of business and political ties on product innovation performance: Evidence from China and India

Technovation ◽  
2019 ◽  
Vol 80-81 ◽  
pp. 30-39 ◽  
Author(s):  
Min Zhang ◽  
Yinan Qi ◽  
Zhiqiang Wang ◽  
Xiande Zhao ◽  
Kulwant S. Pawar
Keyword(s):  
Product Innovation ◽  
Innovation Performance ◽  
China And India ◽  
Political Ties

Outward FDI and Innovation Performance of Chinese Firms: Why Can Home-Grown Political Ties Be A Liability?

2022 ◽  
Vol 57 (3) ◽  
pp. 101306
Author(s):  
Chengqi Wang ◽  
Panagiotis Piperopoulos ◽  
Shihua Chen ◽  
Alan Au Kai Ming ◽  
Kendall Herbert
Keyword(s):  
Innovation Performance ◽  
Outward Fdi ◽  
Chinese Firms ◽  
Political Ties

scholarly journals Local Government Competition, Environmental Regulation Intensity and Regional Innovation Performance: An Empirical Investigation of Chinese Provinces

2019 ◽  
Vol 16 (12) ◽  
pp. 2130 ◽  
Author(s):  
Deng ◽  
Zhang ◽  
Ahmad ◽  
Draz
Keyword(s):  
Local Government ◽  
Environmental Regulation ◽  
Local Governments ◽  
Generalized Least Squares ◽  
Institutional Arrangements ◽  
Innovation Performance ◽  
Regional Innovation ◽  
Regional Heterogeneity ◽  
Development Levels ◽  
The Impact

：The aim of this paper is to examine the impact of local government competition and environmental regulation intensity on regional innovation performance and its regional heterogeneity. Based on the theoretical mechanism of the aforementioned variables, this study uses the Chinese provincial panel data from 2001 to 2016. We use the super-efficiency data envelopment analysis (SE-DEA) to evaluate regional innovation performance. To systematically examine the impact of local government competition and environmental regulation intensity on regional innovation performance, we build a panel date model using the feasible generalized least squares (FGLS) method. The results indicate that: the regional innovation performance can be significantly improved through technological spillover; local governments compete for foreign direct investment (FDI) to participate in regional innovative production. Moreover, improvements in environmental regulation intensity enhance regional innovation performance through the innovation compensation effect. Our results show that the local governments tend to choose lower environmental regulation intensity to compete for more FDI, which has an inhibitory effect on regional innovation performance. Furthermore, due to regional differences in factor endowments, economic reforms and economic development levels in Chinese provinces, there exists a significant regional consistency in the impact of local government competition and environmental regulation intensity on regional innovation performance. Therefore, institutional arrangements and incentive constraints must be adopted to enhance regional innovation performance as well as to guide and foster the mechanism of green innovation competition among local governments. At the same time, considering the regional heterogeneity of local government competition and environmental regulation intensity affecting regional innovation performance, policy makers should avoid the “one-size-fits-all” strategy of institutional arrangements.

scholarly journals MORE IS LESS? THE CURVILINEAR EFFECTS OF POLITICAL TIES ON CORPORATE INNOVATION PERFORMANCE

2019 ◽  
Vol 25 (6) ◽  
pp. 1309-1335
Author(s):  
Mingchuan Yu ◽  
Yujie Lu ◽  
Chao Li ◽  
Han Lin ◽  
Philip Shapira
Keyword(s):  
Absorptive Capacity ◽  
Interactive Effect ◽  
External Environment ◽  
Innovation Performance ◽  
Curvilinear Relationship ◽  
Political Ties ◽  
Corporate Innovation ◽  
Research Findings ◽  
High Level ◽  
The Impact

Previous research has explored the impact of political ties on corporate innovation performance, yet with controversial results. This study proposes that political ties has a curvilinear impact on innovation performance, and the resulting curvilinear relationship is moderated by absorptive capacity and external environment. We conduct examination based on a survey among Chinese manufacturing firms, which demonstrates an inverted U-shape relationship between political ties and corporate innovation performance. This inverted U-shape relationship is moderated by the absorptive capacity, which means the positive effect of political ties on corporate innovation performance is strong when the absorptive capacity of a firm is high. Furthermore, political ties, absorptive capacity and external environment (i.e. dynamism, munificence, and complexity) have a three-way interactive effect on corporate innovation, which means firms with strong political ties exhibit the highest innovation performance when their absorptive capacity and external environmental condition (dynamism or munificence or complexity) stand at high level simultaneously. The research findings provide a comprehensive understanding for firms, especially for those with different characteristics and under different external environments, to exploit political ties to facilitate corporate innovation performance.

REGIONS AND INNOVATION: A NEW TALE OF THREE ECONOMIC REGIONS IN CHINA

2021 ◽  
pp. 2150059
Author(s):  
MEGAN YUAN LI ◽  
SHIGE MAKINO ◽  
MICHAEL MURPHREE ◽  
CHUNYAN JIANG
Keyword(s):  
Emerging Economies ◽  
Local Governments ◽  
Regional Differences ◽  
Multinational Enterprises ◽  
Innovation Performance ◽  
Publicly Funded ◽  
Access To Resources ◽  
Firm Innovation ◽  
Advanced Knowledge ◽  
Economic Regions

Learning is a key component of firm upgrading in emerging economies, and China is no exception to this. Studies have identified, among others, two critical mechanisms that facilitate learning: (1) connections with supportive local governments that enhance access to resources or publicly funded knowledge and (2) connections to co-located foreign multinational enterprises (MNEs) that enhance access to advanced knowledge and capabilities. However, previous studies on the effects of these connections on learning and innovation have had contradictory results. In this study, we develop a model of firm innovation capabilities based on regional differences in firms’ dependence on government and MNEs. Using a sample of 715 indigenous firms from the three historically dominant economic regions in China, we find that the effects of government and MNE ties on local firms’ learning and innovation performance vary depending on the historically dominant dependency patterns in the region.

Openness and technological innovation: the moderating effect of information technology adoption and political ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hao Jiao ◽  
Jifeng Yang ◽  
Cheng Jiang ◽  
Jiawei Yu
Keyword(s):  
Information Technology ◽  
Technology Adoption ◽  
Emerging Markets ◽  
Technological Innovation ◽  
Large Scale ◽  
Innovation Performance ◽  
Content Type ◽  
Information Technology Adoption ◽  
Political Ties ◽  
The Impact

PurposeThis research helps firms pursue an open innovation strategy but want to minimize competitive pressure from other external entities. A theoretical framework is constructed to analyze the impact of openness on innovation performance, exploring different effect of firms' external search channels.Design/methodology/approachThis paper employs a stepwise hierarchical regression approach to assess the effect of openness on technological innovation considering the role of information technology adoption and political ties. The effect is conducted using a large-scale sample of 1,073 Chinese manufacturing firms over the period 2011–2013 as empirical research objects.FindingsThere are two stages of the open technological innovation process while the information technology (IT) adoption and political ties are the key consideration in emerging markets. Openness is curvilinearly (taking an inverted U-shape) related to innovation performance. Both information technology adoption and political ties generally help firms to turn broadly sourced external knowledge into technological innovation performance. This will stimulate “one plus one is greater than two” effect not only in the process of achieving performance goals, but also in the process of technological innovation.Originality/valueThis quantitative research illustrates the importance relationship between firms' open behaviors and technological innovation performance in emerging markets. It helps us understand firms' current constrains of open strategy of technological innovation and helps domestic or foreign investors to make strategic collaboration choices in emerging economies according to the degree of openness, informatization level, political connections, which is equally important for research and practice.

Sign in / Sign up

Export Citation Format

Share Document