The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China

Yi, Jingtao; Hong, Junjie; Hsu, Wen chung; Wang, Chengqi

Abstract

Although it has been suggested that institutional context influences a firm's innovation performance, the role of regulatory institutions has been underexplored. Extending previous research, this study investigates whether and how regulatory institutions (i.e. state ownership, region-specific marketization and industry-specific institutional policy) affect innovation performance of emerging market enterprises (EMEs). Evidence derived from a large sample of Chinese manufacturing firms demonstrates that state ownership positively moderates the effect of R&D intensity on innovation performance. However, state ownership is not equally beneficial for all firms. Our analysis shows that region-specific marketization and industry-specific institutional policy enhance the innovation-enhancing effect of state ownership. By revealing the role of regulatory institutions, our study points to the importance of looking beyond firm boundaries to understand why EMEs are able to innovate despite their weak internal capabilities.

Citation

Yi, J., Hong, J., Hsu, W. C., & Wang, C. (in press). The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China. Technovation, 62-63, https://doi.org/10.1016/j.technovation.2017.04.002

• Journal Article Type: Article
• Acceptance Date: Apr 14, 2017
• Online Publication Date: Apr 18, 2017
• Deposit Date: Nov 8, 2017
• Publicly Available Date: Apr 19, 2019
• Journal: Technovation
• Print ISSN: 0166-4972
• Electronic ISSN: 0166-4972
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 62-63
• DOI: https://doi.org/10.1016/j.technovation.2017.04.002
• Keywords: State ownership ; Marketization ; Industry policy ; Emerging market enterprises ; Innovation performance
• Public URL: https://nottingham-repository.worktribe.com/output/856378
• Publisher URL: http://www.sciencedirect.com/science/article/pii/S016649721730247X