Knowledge Spillovers, Search, and Creation in China's Emerging Market

Abstract

Prior research and the articles included in this special issue demonstrate that in emerging markets in general and in China in particular, knowledge spillovers exist between foreign firms and domestic firms. As domestic markets become more sophisticated, and competition between domestic firms and foreign firms becomes stronger, knowledge is flowing to and being sourced in many different directions: from overseas head offices to foreign firms then on to domestic firms; from domestic firms to domestic firms; and from domestic firms to foreign firms, and back to the multinational corporations' head offices in the form of reverse spillovers and reverse innovation. We propose that knowledge spillovers, search, and creation in an emerging market are a dynamic and reciprocal process with knowledge flowing between and among foreign and domestic firms. This represents a fertile field for future research and we have identified a number of areas ripe for study.

Chinese MNEs' Outward FDI and Home Country Productivity: The Moderating Effect of Technology Gap

“…It is also worth noting that earlier research has focused largely on the effects of inward FDI in China (Li, Zhang, and Lyles, 2013;Wei, Liu, and Liu, 2005). In their most recent article, Li et al (2013) stress the impact of knowledge spillover of inward FDI on Chinese firms.…”

“…It is also worth noting that earlier research has focused largely on the effects of inward FDI in China (Li, Zhang, and Lyles, 2013;Wei, Liu, and Liu, 2005). In their most recent article, Li et al (2013) stress the impact of knowledge spillover of inward FDI on Chinese firms. They describe the spillover channels of foreign parent to foreign subsidiary in China, foreign subsidiaries to local Chinese firm, and then local Chinese firms back to foreign firms (reverse spillover).…”

Balancing Formality and Informality in Business Exchanges as a Duality: A Comparative Case Study of Returnee and Local Entrepreneurs in China

“…However, China's economic transition is incomplete (Hoskisson et al, 2013), and local connections or guanxi are still important (Li, Zhang, & Lyles, 2013). Hence, returnee entrepreneurs who had been exposed to the West with a higher degree of formality still need to strengthen informality to conform to the institutional context in the emerging market.…”

Leveraging Organizational Learning and Alliances in Complex and Changing Business Environments

“…Emerging economy firms will often partner or form a joint venture with more advanced firms with the expectation that technological, managerial, or strategic knowledge will be transferred willingly or through spillover-effects (Li, Zhang, & Lyles, 2013;Lyles & Salk, 1996).…”