Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

Xia, Tianjiao; Liu, Xiaohui

doi:10.1057/s41267-017-0083-y

Cited by 53 publications

(26 citation statements)

References 139 publications

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“…192 ), and to engage in strategic asset seeking (Schüler-Zhou & Schüller, 2009). This 'supporting hand' is likely to be provided only to Chinese firms with low or no foreign ownership, because foreign firms often bring competition to local firms domestically and internationally (Xia and Liu, 2017). Our results portrayed in Figure 3 seem to indicate that, indeed, whilst Chinese exporting firms with lower degrees of foreign ownership exhibit higher levels of productivity gains derived from higher levels of export activity, than do firms with higher degrees of foreign ownership.…”

Section: Additional Analysesmentioning

confidence: 73%

“…In the same year, the Chinese government removed tax incentives to foreign affiliated firms based on a new tax regime, which led to the exit of some foreign firms. Following recent international business and management studies (e.g., (Tse et al, 2017;Xia & Liu, 2017), we used AIS data during this time period to ensure that our findings were not subject to these large events.…”

Section: Datamentioning

confidence: 99%

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Export activity, R&D investment, and foreign ownership: does it matter for productivity?

Sousa

Yan

Gomes

et al. 2021

IMR

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PurposeThe paper examines the impact of export activity on productivity and how this effect is moderated by R&D investment and foreign ownership.Design/methodology/approachA time-lag effect is taken into account when examining the proposed model. Data are collected from the Annual Industrial Survey of the National Bureau of Statistics of China. A dataset containing 117,340 firms across the sample period (2001–2007) are used to test the hypotheses.FindingsThe results indicate that while R&D investment plays a significant role in strengthening the positive effect of export activity on a firm's productivity, foreign ownership surprisingly has a negative moderating role.Originality/valueScholarly interest in the links between export activity and productivity is on the rise. However, the bulk of research has been focused on understanding the effects of export activity on productivity at the country or industry level. Little has been done at the firm level. Another gap in the literature is that the mechanism through which the impact of export activity can be leveraged to enhance the firm's productivity has been largely ignored. To address these issues, the study adopts the learning-by-exporting theory to examine the relationship between export and productivity at the firm-level and how R&D investment and foreign ownership may explain how learning can be leveraged to enhance the firm's productivity. Finally, these relationships are examined in the context of firms from an emerging market, China, which is especially relevant for the learning-by-exporting argument used in this study.

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Section: Additional Analysesmentioning

confidence: 73%

Section: Datamentioning

confidence: 99%

Export activity, R&D investment, and foreign ownership: does it matter for productivity?

Sousa

Yan

Gomes

et al. 2021

IMR

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“…First, to the IB literature, we offer fresh insights on the competitive dynamics between foreign and local firms (e.g., Hutzschenreuter & Grone, 2009;Xia & Liu, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…First, we contribute to the international business (IB) literature by furthering our understanding of why foreign entrants can outperform some but not all types of domestic firms. The IB literature has often compared strategy and performance of foreign and domestic firms (e.g., Hutzschenreuter & Grone, 2009;Xia & Liu, 2017). Adding to this literature, we not only examine the competitive interaction between domestic and foreign firms, but also conduct more nuanced analysis.…”

Section: Introductionmentioning

confidence: 99%

How does ownership influence business growth? A competitive dynamics perspective

Yang

Meyer

2019

International Business Review

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Firms engage in competitive actions to gain market share and hence to grow their revenues. However, not all firms are equally able to use competitive actions to drive growth. We argue that the ability to translate competitive actions to revenue growth depends on the ownership of the firm. Drawing on principal-agent and principalprincipal perspectives, we argue that: (1) private owners (both foreign and local) are better able to employ aggressive actions to grow their business than state owners; (2) firms with multiple owners (especially international joint ventures) are less able to implement actions that drive business growth than full ownership. We find support for these arguments in empirical tests on survey-based data of 106 firms in China. Results show that in an emerging market the principal-principal perspective can better explain governance and competition than the principal-agent perspective.

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“…Research on innovation at the firm level has shown that innovation (and imitation) increasingly requires combing technological components and complementary knowledge from multiple sources (Leiponen and Helfat 2010). The tight control of key technologies and associated complementary knowledge by MNEs can drive the innovation cost curve to a point that the costs of pursing innovation override its benefits (Xia and Liu 2017). This is also the case for IPR imitating/infringing domestic firms, which can choose to divert their focus to production activities of low R&D intensive or/and low valued added, in order to avoid the anticipated sanctions and penalties.…”

Section: The Role Of Public Ipr Enforcement On the Effect Of Ipr Law Protection On Horizontal Productivity Spillovers From Inward Fdimentioning

confidence: 99%

IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-analysis

et al. 2021

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We study the role of the strength of Intellectual Property Rights (IPR) law protection and enforcement in influencing horizontal productivity spillovers from inward FDI to domestic firms in host countries. While most WTO countries adopted strong IPR legislation due to exogenous pressure resulting from the signing of the Trade-Related Aspects of IPR (TRIPS) agreement, public IPR enforcement strength continues to vary significantly between countries. We meta-analyse 49 studies and find that public IPR enforcement strength has a direct positive effect on horizontal productivity spillovers from inward FDI to domestic firms and a negative moderating effect on the relationship between IPR law protection strength and horizontal productivity spillovers from inward FDI to domestic firms.

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Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

Cited by 53 publications

References 139 publications

Export activity, R&D investment, and foreign ownership: does it matter for productivity?

Export activity, R&D investment, and foreign ownership: does it matter for productivity?

How does ownership influence business growth? A competitive dynamics perspective

IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-analysis

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