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Subnational institutions and open innovation: evidence from China

Sun, Fei; Hong, Junjie; Ma, Xiuying; Wang, Chengqi

Authors

Fei Sun

Junjie Hong

Xiuying Ma

Chengqi Wang



Abstract

Purpose: The purpose of this paper is to examine how subnational institutions within a country explain the performance consequences of open innovation (OI) in emerging market enterprises (EMEs).
Design/methodology/approach: The paper conducts a regression analysis by using a novel panel data set comprising of 438 innovative Chinese firms over the period of 2008-2011.
Findings: The authors show that although on average openness to external actors improves innovation performance this effect is pronounced for EMEs that operate in subnational regions with a higher level of intellectual property rights (IPR) enforcement and of factor market development. The findings point to the context-dependent nature of OI strategy and the complementary effect of institutional parameters in emerging markets and help to reconcile the contrasting findings regarding the effect of OI in the prior literature.
Originality/value: This paper extends the literature on OI by suggesting that the analysis of the performance consequences of OI strategy should go beyond the nexus between OI and firm performance, and instead, focus on subnational-specific institutions, such as region-specific IPR enforcement, factor market development and intermediation market development, that may facilitate or constrain the effect of OI model.

Journal Article Type Article
Publication Date Oct 12, 2017
Journal Management Decision
Print ISSN 0025-1747
Electronic ISSN 0025-1747
Publisher Emerald
Peer Reviewed Peer Reviewed
Volume 55
Issue 9
APA6 Citation Sun, F., Hong, J., Ma, X., & Wang, C. (2017). Subnational institutions and open innovation: evidence from China. Management Decision, 55(9), doi:10.1108/MD-11-2016-0781
DOI https://doi.org/10.1108/MD-11-2016-0781
Keywords Open innovation; Institutions; Subnational regions; Performance; Chinese firms
Publisher URL https://doi.org/10.1108/MD-11-2016-0781
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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