FIRM LOCATION AND INNOVATION: EVIDENCE FROM CHINESE LISTED FIRMS

2019 ◽  
Vol 24 (04) ◽  
pp. 1950026
Author(s):  
JIAN XU ◽  
XI YANG ◽  
DAQI XIN ◽  
WENCANG ZHOU ◽  
XIAOYANG ZHU

Matching city-level and province-level GDP data with firm headquarters’ locations for a sample of Chinese listed firms from 2003 to 2015, we find that firm locations are positively and significantly associated with firm innovation. In addition, firms with higher government grants have higher R&D inputs. The gap between firms’ innovation performance in ordinary cities and in non-ordinary cities is not significant in the eastern region; however, the gap is significant in the central and western regions of China. Finally, we use firm relocation to tackle the endogeneity issue and find that firms relocated to cities with larger size of economy are associated with higher innovation performance.

2019 ◽  
Vol 11 (8) ◽  
pp. 2321 ◽  
Author(s):  
Shuman Zhang ◽  
Changhong Yuan ◽  
Yuying Wang

Innovation is a key factor for the sustainable development of firms. Although it has been a prevalent phenomenon that firms maintain multiple industry–university–research (I–U–R) alliances simultaneously to generate innovation, there is a lack of explorations in this phenomenon in extant literature. In this study, we introduce a new construct, I–U–R alliance portfolio, and investigate the impact of its diversity on a focal firm’s innovation performance. Hypotheses are proposed and examined using datasets of 176 listed firms in the Chinese manufacturing industry. We find that I–U–R alliance portfolio diversity exerts a positive effect on a focal firm’s innovation performance and a firm’s absorptive capacity positively moderates this relationship. Furthermore, we contend that with increasing levels of government financial support, the positive relationship between I–U–R alliance portfolio diversity and firm innovation performance is strengthened. Finally, our findings provide several theoretical and practical implications for the I–U–R alliance portfolio and firm innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peinan Ji ◽  
Xiangbin Yan ◽  
Yan Shi

Purpose The purpose of this study is to deepen the understanding of the effects of information technology (IT) investment on firm innovation performance and examining the investment paradox effect in China. Design/methodology/approach Using a sample of China’ public firms IT investment data between 2010 and 2016, the authors establish a test model of IT investment and innovation performance. Findings The result indicates that IT investment in firms have no effect on innovation performance in the investment period. However, in the full sample and manufacturing sample, the IT investment has a significant positive effect on innovation performance in the post-investment years. In addition, this study finds that large companies and low-age companies may contribute more to innovation when firm investment in IT. Research limitations/implications There are several limitations in this research. First, the authors are failed to obtain a larger sample about the IT investment information data set in China, so this study was compelled to use limited sample data from China, hence, this could lead to errors of too early generalization. Second, the authors use the number of invention patent applications to represent the performance of enterprise innovation, which may not show enterprise innovation effectively. Third, the firms in the sample are all in China Listed Companies, so this may not accurately reflect the entire environment of firm innovation performance, and could possibly. Practical implications The research confirms that there is a paradox and time lag effect in IT investment, which enterprises should pay attention to. Originality/value Existing research confirms that corporate IT investments can bring new products or services. However, the authors still do not know whether IT investment has improved the company’s ability of innovation. This study will fill this gap and the industry effect and time lag effect of the influence of IT investment on innovative performance are also examined.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chi Thi Phuong Nguyen ◽  
Duong Tuan Nguyen ◽  
Hang Thu Nguyen

Purpose The purpose of this paper is to examine the effect of entrepreneurs’ personality traits on firm innovation performance through the mediation role of entrepreneurs’ innovativeness. Design/methodology/approach The data consist of 2,574 firms from a survey of small and medium-scale manufacturing enterprises (SMEs) in Vietnam, a developing and transitioning economy where SMEs constitute an integral part of the economy. The estimation results based on the structural equation model was applied to analyze the data. Findings The results indicate that an entrepreneur’s innovativeness is positively associated with his extraversion, conscientiousness, and openness to experience but negatively accompanied with his neuroticism. Besides, the three traits – openness to experience, conscientiousness and extraversion have positive indirect effects, while neuroticism has a negative indirect effect on technological improvement and new technology adoption. However, the effects of agreeableness on entrepreneurial innovativeness and firm innovation performance are insignificant. In addition, the diverse backgrounds of the entrepreneur such as education and ethnics are also found to influence his innovativeness and to have indirect effects on firm innovation performance. Originality/value This study may contribute to the immature literature on the entrepreneurial process within SMEs by presenting empirical evidence on the relationship between entrepreneurial personality traits and firm innovation with a large sample of SMEs in Vietnam, an emerging economy where SMEs constitute an integral part of the economy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pan Hu ◽  
Ying Wang ◽  
Tao Feng ◽  
Yuxin Duan

Purpose The purpose of this paper is to investigate three issues: how does an innovative search (local search and boundary-spanning search) impact firm innovation performance of latecomers; how does capability reconfiguration (capability evolution and capability substitution) mediates the relationship between innovative search and firm innovation performance; and how does the technological leapfrogging process (initial stage, following stage, synchronization stage and leading stage) moderate the relationship between capability reconfiguration and firm innovation performance. Design/methodology/approach A “resource-capability-performance” theoretical framework was developed to explore the relationships between local/boundary-spanning search, capability reconfiguration and firm innovation performance. The data were collected by sending out surveys to managers and employees in various industries in mainland China. These hypotheses were tested using structural equation models and hierarchical regressions. Findings The results showed that: innovative search has a direct causal relationship to capability reconfiguration; local search and boundary-spanning search are conducive to improve the innovation performance of latecomers; the impact of local search and boundary-spanning search on innovation performance is realized through the completion of mediating role of capability reconfiguration; there are differences in the path of local search and boundary-spanning search affecting the capability reconfiguration of enterprise innovation performance; and the relationship between innovative search, capability reconfiguration and enterprise innovation performance evolves with the enterprise in different stages of technological leapfrogging. Originality/value This study explores the relationship and the path of innovative search to firm innovation performance and analyzes the path difference between local search and boundary-spinning search, which enriches the research of organizational search and enterprise innovation. This paper reveals the whole path of innovative search affecting innovation performance, discusses the important role of capability reconfiguration and makes incremental contributions to dynamic capability theory. It studies the evolution of innovative search on innovation performance under the background of technological leapfrogging, which provides a new perspective for the study of organizational search and capability-based theory.


2014 ◽  
Vol 49 (11) ◽  
pp. 1840-1858 ◽  
Author(s):  
Danielle Galliano ◽  
Marie-Benoît Magrini ◽  
Pierre Triboulet

2017 ◽  
Vol 29 (4) ◽  
pp. 402-418 ◽  
Author(s):  
Anni-Kaisa Kähkönen ◽  
Katrina Lintukangas ◽  
Paavo Ritala ◽  
Jukka Hallikas

Purpose Due to the increasing complexity in supply chains and networks, several key practices have been highlighted as beneficial for supply chain performance. However, it is less known whether adopting such practices affects the innovation performance of the focal firm. This study hypothesises that supplier collaboration practices in four specific areas (green and ethical supply management, early supplier involvement, systemic purchasing and inter-firm learning) may lead to higher focal firm innovation performance, as they require the firm to adopt new business models, processes and product features. Design/methodology/approach The hypotheses drawn from previous research are tested with a quantitative survey study of 165 Finnish firms and analysed by means of regression analysis. Findings The results show that two examined practices are positively related to focal firm innovation performance: systemic purchasing and green and ethical supply management. Interestingly, early supplier involvement and inter-firm learning did not influence innovation performance. Originality/value Little is known about whether adopting certain practices in supply management affects the innovation performance of the firm. In fact, among the performance indicators of supply management, innovation is rarely studied, and more studies using innovation as a performance indicator are called for. Thus, this study focuses on supplier collaboration practices and their relation to the focal firm’s innovation performance.


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