Managing Foreign R&amp;D in China

Zedtwitz, Maximilian von; Ikeda, Tadashi; Gong, Li; Carpenter, Richard; Hämäläinen, Seppo

doi:10.1080/08956308.2018.1436347

Cited by 8 publications

(9 citation statements)

References 1 publication

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“…Li & Li, 2013). In contrast, governments at low levels (e.g., municipal government) pay more attention to local employment and tax incomes in their own jurisdictions than to national-level objectives (Bai, Lu, & Tao, 2006;Von Zedtwitz, Ikeda, Gong, Carpenter, & Hämäläinen, 2007). Such differences in government objectives suggest that firms affiliated with higher-level governments are more obliged to innovate than those with lower (or no) government affiliation.…”

Section: Government Affiliation and Innovation Performancementioning

confidence: 99%

“…As a result, higher‐level governments set up more influential science and technology programs through which they provide financial and human resources to support firms that follow the government's innovation priorities (P. Fan & Watanabe, ; Z. Li & Li, ). In contrast, governments at low levels (e.g., municipal government) pay more attention to local employment and tax incomes in their own jurisdictions than to national‐level objectives (Bai, Lu, & Tao, ; Von Zedtwitz, Ikeda, Gong, Carpenter, & Hämäläinen, ). Such differences in government objectives suggest that firms affiliated with higher‐level governments are more obliged to innovate than those with lower (or no) government affiliation.…”

Section: Hypothesesmentioning

confidence: 99%

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On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms

Xia

Zajac

2017

Strategic Management Journal

227

197

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Research Summary: In this study, we propose and test a multi-stakeholder perspective to address variation in innovation performance across firms. Specifically, we analyze how a focal firm's innovation performance is shaped by its political stakeholders (local and central governments) and economic stakeholders (suppliers, buyers, and competitors). Using a data set consisting of over 26,400 Chinese firms, we first find support for our predictions that a focal firm's innovation performance will be enhanced by both its government connections and the innovativeness of its economic stakeholders. We then analyze whether the interdependent effect of these political and economic stakeholders is more likely to be synergistic versus antagonistic, and find evidence consistent with the antagonistic view. Managerial Summary: We show how a firm's innovativeness is influenced strongly by its relationships to external stakeholders. Specifically, we examine the potentially dual-edged role of political stakeholders (local and central governments) and economic stakeholders (suppliers, buyers, and competitors). Using extensive data on Chinese firms, we find: (a) that the higher the level of government connections, the greater a firm's innovativeness; (b) that firms located in proximity with more innovative economic stakeholders also tend to have higher innovation performance. We also look beyond these independent positive effects to examine the joint effect of these two forms of stakeholder influence, and here we see that more influence is not always better. Specifically, we find that the innovation benefit that typically accrues to firms in proximity to more innovative economic stakeholders is weakened when those firms also have higherlevel government connections.

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Section: Government Affiliation and Innovation Performancementioning

confidence: 99%

Section: Hypothesesmentioning

confidence: 99%

On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms

Xia

Zajac

2017

Strategic Management Journal

227

197

View full text Add to dashboard Cite

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“…First, central SOEs approve and initiate more influential science and technology programs to provide the financial and human resources required to fulfil the government's innovation priorities, and, more importantly, they are under greater pressure to achieve the government's innovation objectives (Fan and Watanabe, 2006;Li and Wang, 2014;Guan and Yam, 2015;Guo et al, 2016). In contrast, local SOEs are less innovative because local governments pay more attention to local employment and tax revenue in their own jurisdictions than to national-level objectives (Bai et al, 2006;Zedtwitz et al, 2007). Such differences in government objectives suggest that enterprises affiliated with the central government are more committed to innovation than those affiliated with local governments.…”

Section: Literature Review and Hypothesis Development 1 Politicamentioning

confidence: 99%

Do Political Connections Promote Innovation in Environmentally Polluting Enterprises?

Zhang

Fung

et al. 2019

China and World Economy

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We use an unbalanced panel data analysis to examine the effect of political connections (PCs) in state-owned enterprises (SOE) and non-SOEs on the innovation of Chinese environmentally polluting enterprises listed on the Shanghai and Shenzhen Stock Exchanges from 2007 to 2016. Our sample consists of 792 firms and 4587 firm-year observations. There are several interesting findings. First, SOEs that are politically linked to the central government promote more innovation in general and more environmental innovation than SOEs without these links. Second, privately-owned enterprises (non-SOEs) with PCs promote less environmental innovation than non-SOEs without PCs. Third, environmental regulation does not affect the environmental innovation of SOEs but it drives non-SOEs with PCs to become more environmentally innovative. Our results enable us to better understand how PCs and regulations affect environmental innovation.

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“…The nature of these evolving supplier relationships provides learning opportunities for local firms to upgrade in GVCs and dynamically shapes the innovation processes of foreign MNCs (Nahm and Steinfeld, 2014;Hertenstein and Williamson, 2018;Haakonsoon and Slepniov, 2018;Murphree and Anderson, 2018). Additionally, many Western MNCs have offshored R&D to China to benefit from local talent and proximity to consumers (e.g., von Zedtwitz, 2004;Lewin et al, 2009;Lema and Lema, 2011), and the country serves as an important "listening post" for understanding innovation trends and market demand in neighboring countries in Asia (Boutellier et al, 2008). Further, China is not just a recipient of first-world innovation, but also an important source of learning in the form of trickle-up/reverse innovation (Immelt et al, 2009;von Zedtwitz et al, 2015).…”

Section: Gvcs and Rising Interdependency Of Foreign Mncs On Chinamentioning

confidence: 99%