How do formal and informal institutional distance affect the reverse knowledge spillover of Chinese MNCs?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yi She ◽  
Jin Hong ◽  
Chuwei Ji
Keyword(s):  
Multinational Corporations ◽  
Knowledge Spillovers ◽  
Positive Impact ◽  
Innovation Performance ◽  
Parent Company ◽  
Practical Significance ◽  
Host Countries ◽  
Content Type ◽  
Chinese Mncs ◽  
The Impact

PurposeThis study examines the impact of outward foreign direct investment (OFDI) of Chinese multinational corporations (MNCs) and formal and informal institutional distances between the home and host countries on the innovation performance of parent company.Design/methodology/approachThis study uses panel data to conduct an empirical analysis on the data of 59 mature Chinese MNCs and their 872 overseas subsidiaries over the past 11 years and draws interesting results.FindingsResults show that OFDI and formal and informal institutional distances between countries exert a significant positive impact on the innovation performance of the parent company and formal and informal institutional distances negatively moderate the impact between OFDI and the parent company's innovation performance.Originality/valueAlthough international business research pays increasing attention to transnational differences in institutions and cultures, research on the relationship between technology spillover and distance is relatively limited. In addition, few studies consider the impact of FID and IFID on transnational reverse knowledge spillovers. This research fills these research gaps, and the conclusions have certain practical significance for multinational companies.

scholarly journals International diversification and firm’s value: evidence from developing nations

2016 ◽  
Vol 26 (2) ◽  
pp. 166-183 ◽  
Author(s):  
A.N. Bany-Ariffin ◽  
Bolaji Tunde Matemilola ◽  
Liza Wahid ◽  
Siti Abdullah
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Multinational Firms ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
International Diversification ◽  
Technological Advancement ◽  
Reverse Causality ◽  
Content Type ◽  
The Impact

Purpose This paper aims to evaluate the impact of international diversification, through the investment abroad activities of the Malaysian multinational corporations (MNCs), on their financial performance. Design/methodology/approach The paper applies the panel generalized method of moments (GMM) estimation technique that gives better results. Findings The empirical findings show that the move to invest abroad has brought a positive impact on Malaysian MNCs’ financial performance. However, in terms of a firm’s risk, the results contradict the general internationalization-risk hypothesis. Research limitations/implications The study focuses on the top 100 multinational firms; future researchers may extend the time period and use the entire sample of all the multinational firms. Practical implications Foreign investments offer rewarding returns due to cheaper labour and raw materials, competitive edge in terms of technological advancement and larger market opportunities. Originality/value The paper contributes to the literature using the panel GMM’s estimation that effectively control for reverse causality and serial correlation problem. The paper also contributes to the international diversification and performance relationship, in a fast-growing Malaysia.

scholarly journals Knowledge spillovers and innovation: analysis of the relationships between service centres and MSMEs from the regional perspective

2020 ◽  
Vol 63 (3) ◽  
pp. 275-285
Author(s):  
Jordan Klimek ◽  
◽  
Katarzyna Łobacz ◽  
Keyword(s):  
Multinational Corporations ◽  
Knowledge Creation ◽  
Quantitative Research ◽  
Knowledge Spillovers ◽  
Positive Impact ◽  
Knowledge Resources ◽  
New Knowledge ◽  
Regional Service ◽  
Innovation Analysis ◽  
The Impact

The innovativeness of micro, small and medium-sized enterprises (MSMEs) is dependent on accessibility to appropriate knowledge resources that enable creation of new market offers. Due to inherent limitations related to the possibilities of investing in the acquisition or creation of new knowledge, smaller entities may benefit from the proximity of large companies, especially multinational corporations, which are actively involved in new knowledge creation, and this knowledge has the ability to spill over. The flow of knowledge from service centres to local smaller companies has the potential to stimulate innovativeness in regional service functions, creating opportunities for paper is to analyse the impact of the flow of knowledge from service centres to MSMEs as a result of interactions between them. For this purpose, empirical data from quantitative research carried out by the research team in 2016 on a representative sample of 1,100 micro small and medium-sized enterprises in the Zachodniopomorskie (West Pomerania) voivodeship were used. The analysis shows that service centres can have a positive impact on the innovativeness of companies in the regions in which they are located, provided that there is a flow of knowledge as a result of direct transfer or personal interactions.

Government and innovation performance: evidence from the ICT enterprising community

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Herolinda Murati-Leka ◽  
Besnik Fetai
Keyword(s):  
Positive Impact ◽  
Public Funding ◽  
Research Direction ◽  
Innovation Performance ◽  
Future Research ◽  
Innovation Ecosystem ◽  
Content Type ◽  
The Government ◽  
The Impact ◽  
Ict Companies

Purpose The purpose of this paper will be on finding and analyzing the impact of government on the information and communication technology (ICT) companies’ innovation performance. The study aims to conduct in-depth research about the government as an integrated actor of the innovation ecosystem (IE), not a sole member. This would be the core finding toward doing further research about the impact of the innovation ecosystem in the ICT sector in Kosovo. Design/methodology/approach Quantitative research has been considered the most suitable data collection method. Furthermore, in this study, it is used convenience sampling as a technique of the sampling process. The sample size of this study is 106 participants. The participants are owners or representatives of ICT companies in Kosovo. Since the study is conducted using the deductive approach, the questionnaire is considered to be the most suitable instrument for gathering data. Findings This paper provides empirical insights that the company’s size and the dedicated department for research and development have no impact on how the company takes advantage of public funding from the government. Furthermore, the authors of the paper found out that government has a positive impact on companies’ introduction of new products and services, while the impact of the government on a company’s financial performance was insignificant. Research limitations/implications The future research direction should be firstly on studying other IE actors and their impact on companies’ innovation performance and secondly on measuring the IE actors as a set of actors to have a broader picture on how IE impacts the companies’ innovation performance. Practical implications The scientific contribution of this study will be on mapping, analyzing and proposing government policies in accordance with the findings of this study that would lead to a more comprehensive and sustainable IE in Kosovo. Originality/value This study tries to fulfill an identified need to study the impact of interconnected actors of an innovation ecosystem and to show how they affect each other. In this study, it is taken for research one fragment of a set of actors.

The impact of digitalisation vision and information technology on organisations' innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farzana Parveen Tajudeen ◽  
Devika Nadarajah ◽  
Noor Ismawati Jaafar ◽  
Ainin Sulaiman
Keyword(s):  
Information Technology ◽  
Positive Impact ◽  
Process Innovation ◽  
Innovation Performance ◽  
Content Type ◽  
It Integration ◽  
And Performance ◽  
Questionnaire Method ◽  
The Impact

PurposeBased on the dynamic capability theory (DCT), this study examines the role of digitalisation vision and the impact of key information technology (IT) strategies, such as IT flexibility, IT integration and IT agility, on organisations' process innovation capability and the subsequent impact these may have on innovation performance.Design/methodology/approachData for this study were collected from 153 public listed organisations in Malaysia. The survey questionnaire method was used to collect the data from the organisations' representatives.FindingsResults showed that it is important for organisation to have a strategic digitalisation vision to improve their process innovation capabilities. IT agility and IT integration also had a significant positive relationship with the process innovation capabilities of the organisations, which in turn had a positive impact on innovation performance.Originality/valueDigital transformation and innovation are crucial for organisations to survive in the era of Industry 4.0. However previous studies have not captured the role of digitalisation vision, strategic IT components and its impact on process innovation capabilities. The current study filled up the gap and examined these relationships. The outcome of this study provides valuable insights for managers to understand the importance of digitalisation and the need to focus on key IT strategies. Such insights can be used to improve organisations' process capability which is critical for innovation and performance.

scholarly journals Mentoring in international assignments: a personality traits perspective

2017 ◽  
Vol 39 (7) ◽  
pp. 1100-1130 ◽  
Author(s):  
Tassilo Schuster ◽  
Judith Ambrosius ◽  
Benjamin Bader
Keyword(s):  
Personality Traits ◽  
Multinational Corporations ◽  
Host Country ◽  
Positive Impact ◽  
Well Being ◽  
Organizational Studies ◽  
Psychological Well Being ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of personality and mentorship on expatriates’ psychological well-being. The authors argue that certain personality traits (extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience) have positive effects on expatriates’ psychological well-being and that these personality traits enable them to derive a greater benefit from mentorship. By doing so, this study identifies for which personality traits which type of mentoring (home or host country mentor) is most beneficial. Design/methodology/approach Based on socioanalytic theory, the authors develop theory-driven hypotheses and test them against data of 334 expatriates. Findings The study shows that several personality traits as well as home country mentorship have a significant positive impact on psychological well-being, whereas host country mentorship shows no significant positive effects. Moreover, the study indicates that home and host country mentorship partially moderates the relationship between personality traits and psychological well-being. Originality/value Since the authors derive important implications for the selection process of expatriates as well as for the implementation of mentoring in multinational corporations, this study is of value for researchers and practitioners in the areas of human resource management and organizational studies.

The effect of soft ICT capital on innovation performance of Greek firms

2013 ◽  
Vol 26 (6) ◽  
pp. 679-701 ◽  
Author(s):  
Spyros Arvanitis ◽  
Euripidis Loukis ◽  
Vasiliki Diamantopoulou
Keyword(s):  
Information And Communication Technologies ◽  
Regression Models ◽  
Positive Impact ◽  
Innovation Performance ◽  
Empirical Literature ◽  
Future Research ◽  
Content Type ◽  
Knowledge And Skills ◽  
Ict Training ◽  
The Impact

Purpose – The purpose of this paper is to investigate the effects of four types of “soft” information and communication technologies (ICT) capital related to ICT knowledge and skills (ICT personnel, ICT training of ICT personnel and users, ICT unit) on the innovation performance of Greek firms. Furthermore, the paper compares these effects with the ones of the hard ICT capital and also of four important “traditional” innovation determinants identified from previous research in this area (demand expectation, price and non-price competition, market concentration). Design/methodology/approach – A quantitative methodology has been adopted for investigating the above effects, based on the estimation of regression models. Using data collected through a survey based on a structured questionnaire from 271 Greek firms, innovation models have been estimated, having as independent variables measures of hard ICT capital, the examined four types of soft ICT capital and also the above traditional innovation determinants. Findings – The paper has been concluded that in the innovation averse Greek national context the examined traditional innovation determinants have very low impact on firms’ innovation performance, however, on the contrary both hard ICT capital, and three out of the four examined types of soft ICT capital (ICT personnel, ICT training of ICT personnel and users) have positive impact on both process and product/services innovation. Furthermore, it has been found that the total effect of these three knowledge and skills related types of soft ICT capital on innovation performance is stronger than the effect of the hard ICT capital. Research limitations/implications – The main limitations of the paper are that it uses simple innovation performance measures (not distinguishing between different types of innovations), and also is based on firm-level data collected from a single country. The paper has interesting implications for future research on the impact of the relation between ICT and innovation, which should not any more neglect the soft ICT capital, but consider various types of both hard and soft ICT capital. Practical implications – The results of the paper can be useful to firms’ chief information officers and chief executive officers and also to consultants and practitioners interested in maximizing the exploitation of the innovation potential of ICT, in order to understand the hard and soft aspects of ICT that have to be developed for this purpose and optimize firms’ ICT-related investment. Originality/value – The limited previous empirical literature concerning the effect of ICT on innovation focus on the hard ICT capital (mainly on ICT equipment) and neglect the role of the soft ICT capital. The paper contributes to fill this research gap, by examining the effects of three types of ICT capital, and also – for comparison and regression models’ completeness purposes – of hard ICT capital and of four traditional innovation determinants, on firms’ innovation performance.

scholarly journals The role of strategic purchasing in dynamic capability development and deployment

2018 ◽  
Vol 38 (2) ◽  
pp. 446-473 ◽  
Author(s):  
Alistair Brandon-Jones ◽  
Desiree Knoppen
Keyword(s):  
Operations Management ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Innovation Performance ◽  
Dynamic Capability ◽  
Equation Modeling ◽  
Capability Development ◽  
Content Type ◽  
Strategic Purchasing ◽  
The Impact

Purpose The purpose of this paper is to report on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. The authors also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms. Design/methodology/approach The authors test hypotheses using structural equation modeling of survey data from 309 manufacturing and service firms. Findings From a dynamic capability perspective, the analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. The authors also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from the data, the authors explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in operations management (OM) research. Originality/value The research offers a number of theoretical and managerial contributions, including being one of a relative few examples of empirical assessment of dynamic capability development and deployment; examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; assessing the contingency effect of firm type for dynamic capabilities; and uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.

Linking ownership acquired in Chinese firms to post-acquisition innovation performance: role of institutional distance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nadia Hanif ◽  
Jianfeng Wu ◽  
Ahmad Bilal Babar
Keyword(s):  
Negative Binomial ◽  
Positive Impact ◽  
Negative Binomial Regression ◽  
Innovation Performance ◽  
Institutional Distance ◽  
Target Firm ◽  
Content Type ◽  
Acquiring Firms ◽  
Target Firms ◽  
The Impact

Purpose The primary purpose of this study is to explore the impact of acquired ownership in Chinese target firm on the innovation performance of developed economies (DE) acquiring firms. Furthermore, the study aims to empirically investigate the moderating influence of institutional distance between two parties’ home countries. Design/methodology/approach For the empirical investigation of the hypotheses, the authors identified cross-border technological acquisitions from the Securities Data Company between 1995 and 2015. A hierarchical negative binomial regression technique was used to analyze 177 technological acquisitions completed by DE acquiring firms in China. Findings Analysis of technological acquisition deals confirmed that acquired ownership undertaken in the Chinese target firms increases the DE acquiring firms’ post-acquisition innovation performance. The authors found that DE acquiring firms underperform in innovation in institutionally distant host countries. Originality/value This study contributes to the international business literature by explaining the importance of acquired ownership undertaken in the Chinese target firms for the DE acquiring firm’s innovation performance. Second, institutional theory defines how institutional uncertainty in terms of distance modifies the positive impact of acquired ownership on acquiring firm’s innovation performance.

An examination of product innovation and buyer-supplier relationship in Pakistani firms

2014 ◽  
Vol 63 (8) ◽  
pp. 1031-1045 ◽  
Author(s):  
Muhammad Shakeel Sadiq Jajja ◽  
Shaukat Ali Brah ◽  
Syed Zahoor Hassan ◽  
Vijay R. Kannan
Keyword(s):  
Product Innovation ◽  
Structural Equation ◽  
Positive Impact ◽  
Market Performance ◽  
Equation Model ◽  
Innovation Performance ◽  
Organizational Characteristics ◽  
Content Type ◽  
Organizational Collaboration ◽  
The Impact

Purpose – The purpose of this paper is to explore the interface between buyers and suppliers in the context of product innovation in an emerging economy. Specifically, it examines the strategic and tactical initiatives necessary to drive inter-organizational alignment and thus positive innovation outcomes. It also examines the impact of organizational characteristics on product innovation. Design/methodology/approach – Using survey data from 191 organizations in Pakistan, a structural equation model of the relationships between buyers’ and suppliers’ strategic focus on innovation, supplier innovation focus, collaborative innovation, and measures of product innovation and market performance is tested. In addition, hierarchical regression analysis is used to identify the impact of various organizational characteristics on product innovation performance. Findings – The results suggest that a firm's product innovation performance is positively influenced by strategic buyer-supplier alignment with regard to product innovation, and the existence of mechanisms that foster inter-organizational collaboration. This in turn has a positive impact on market performance. Product innovation performance is also influenced by a firm's age, the nature of its ownership, and the extent to which it exports its products. Originality/value – The study offers new insight into the role of inter-organizational collaboration as a driver of product innovation. Moreover, it adds to a limited literature on supply chain management in emerging economies generally, and on product innovation in the Indian sub-continent specifically.

The effects of coopetition on the innovation activities and firm performance

2019 ◽  
Vol 29 (5) ◽  
pp. 622-645 ◽  
Author(s):  
Cristina I. Fernandes ◽  
João J. Ferreira ◽  
Pedro M. Veiga ◽  
Carla Marques
Keyword(s):  
Positive Impact ◽  
Innovation Performance ◽  
Theory Approach ◽  
Transfer Of Knowledge ◽  
Multivariate Statistical ◽  
Community Innovation Survey ◽  
Content Type ◽  
Innovation Activities ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper involves evaluating the impact of coopetition on the innovation activities and innovation performance of companies. Design/methodology/approach The study deployed data from the Community Innovation Survey – CIS 2012 and subject to the application of different multivariate statistical analysis processes. Findings The authors furthermore conclude that coopetition and the transfer of knowledge to and from competitors generates a statistically significant positive impact on company innovation-related activities and performance. Originality/value This work enriches the theory of innovation from the perspectives of game-theoretic strategic and resource theory approach. Moreover, the findings provide several recommendations for managers to effectively conduct firm’s coopetition strategy on innovation performance.

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