The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China

Yi, Jingtao and Hong, Junjie and Hsu, Wen chung and Wang, Chengqi (2017) The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China. Technovation, 62-63 . pp. 4-13. ISSN 0166-4972

[img] PDF - Repository staff only until 18 April 2019. - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (204kB)

Abstract

Although it has been suggested that institutional context influences a firm's innovation performance, the role of regulatory institutions has been underexplored. Extending previous research, this study investigates whether and how regulatory institutions (i.e. state ownership, region-specific marketization and industry-specific institutional policy) affect innovation performance of emerging market enterprises (EMEs). Evidence derived from a large sample of Chinese manufacturing firms demonstrates that state ownership positively moderates the effect of R&D intensity on innovation performance. However, state ownership is not equally beneficial for all firms. Our analysis shows that region-specific marketization and industry-specific institutional policy enhance the innovation-enhancing effect of state ownership. By revealing the role of regulatory institutions, our study points to the importance of looking beyond firm boundaries to understand why EMEs are able to innovate despite their weak internal capabilities.

Item Type: Article
Keywords: State ownership ; Marketization ; Industry policy ; Emerging market enterprises ; Innovation performance
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: 10.1016/j.technovation.2017.04.002
Depositing User: Eprints, Support
Date Deposited: 08 Nov 2017 13:09
Last Modified: 09 Nov 2017 11:46
URI: http://eprints.nottingham.ac.uk/id/eprint/47968

Actions (Archive Staff Only)

Edit View Edit View