Unpacking the relationship between outward direct investment and innovation performance: evidence from Chinese firms

Xiaolan, Fu and Hou, Jun and Xiaohui, Liu (2018) Unpacking the relationship between outward direct investment and innovation performance: evidence from Chinese firms. World Development, 102 . pp. 111-123. ISSN 0305-750X

Documents
28920.pdf

Request a copy
[img] PDF
28920.pdf - Whole Document
Restricted to Repository staff only until 25 December 2020.

798kB
Item Type:Article
Item Status:Live Archive

Abstract

This study investigates the impact of outward direct investment (ODI) by Chinese MNEs on innovation performance and the conditions under which such an impact is moderated, based on a sample of Chinese firms. The empirical evidence suggests that undertaking ODI leads to an increase in the innovation performance of these Chinese firms. The impact of ODI on innovation is contingent on firm characteristics such as in-house R&D, strategic orientation and international experiences as well as contextual factors associated with investment destinations and industry contexts. We also find that learning through ODI is a complex process. There is a substitution between ODI and in-house R&D in Chinese MNEs. Our findings suggest that conducting ODI in developed countries serves as an effective channel for latecomer firms to overcome internal resource constraints and leapfrog towards the technology frontier.

Keywords:ODI in developed countries, learning, innovation performance, Chinese MNEs
Subjects:L Social studies > L100 Economics
L Social studies > L110 Applied Economics
Divisions:Lincoln International Business School
Related URLs:
ID Code:28920
Deposited On:28 Sep 2017 12:57

Repository Staff Only: item control page