The impact of state shares on corporate innovation strategy and performance in China

Abstract

State shares, Innovation types, Innovation modes, Innovation performance,

State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

“…In this study we hypothesize the moderating effects of state ownership while controlling for its direct effect. Following prior studies, we measured state ownership in a Chinese firm as the total percentage of equity ownership by the Chinese government and its agencies (Xu & Zhang, 2008;Zou & Adams, 2008 (Meyer et al, 2009). In our study, we could not access a reliable archival source of Chinese outward FDI and were unable to obtain an index measure on the home country regulatory restrictions on outward FDI.…”

State Ownership Effect on Firms’ FDI Ownership Decisions Under Institutional Pressure: A Study of Chinese Outward-Investing Firms

“…In this study we hypothesize the moderating effects of state ownership while controlling for its direct effect. Following prior studies, we measured state ownership in a Chinese firm as the total percentage of equity ownership by the Chinese government and its agencies (Xu & Zhang, 2008;Zou & Adams, 2008…”

Subsidiary strategy of emerging market multinationals: A home country institutional perspective

“…We argue that the effects of home country government support on the global integration strategy of the subsidiary are contingent upon the degree of state ownership of the parent firm for two key reasons. First, state-owned enterprises (SOEs), especially in the case of Chinese SOEs, have privileged access to valuable government-controlled resources, such as cheap financing, low tax rates, and public R&D, which are not available to other types of companies (Deng, 2009;Hong et al, 2015;Morck et al, 2008;OECD, 2008;Xu & Zhang, 2008). Since 2000, Chinese government has actively supported the globalization of SOEs as they are "national champions" (Liang et al, 2015).…”

“…On the one hand, state ownership might compensate for the negative effects of domestic institutional weakness because SOEs can achieve market power based on the access to government resources and the benefits of preferential treatment (Boisot & Meyer, 2008;Luo et al, 2010;Meyer et al, 2014). For example, Chinese SOEs often have in-house research institutes and government-funded R&D investments because they are considered as major actors in the national innovation system (OECD, 2008;Xu & Zhang, 2008). This may offset their foreign subsidiaries' perceptions toward competitive disadvantages resulting from inefficient domestic R&D systems and weak intellectual property protection rights.…”