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Outward FDI, location choices and innovation performance of emerging market enterprises

Piperopoulos, Panagiotis; Wu, Jie; Wang, Chengqi

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Authors

Panagiotis Piperopoulos

Jie Wu

CHENGQI WANG CHENGQI.WANG@NOTTINGHAM.AC.UK
Professor of Strategy & International Business



Abstract

Although prior research conceptualizes how knowledge-seeking motivates the internationalization of emerging-market enterprises (EMEs), whether outward foreign direct investment (OFDI) indeed leads to enhanced innovation performance has received limited attention. We address this subject by conceptualizing how Chinese EMEs’ OFDI enhances their subsidiaries’ organizational learning and innovation performance and whether geographic location choices influence this relationship. Our panel data analysis of Chinese EMEs shows that OFDI has a positive effect on innovation performance of Chinese EMEs’ subsidiaries and that this effect is stronger when the OFDI is directed towards developed rather than emerging countries. These findings advance the notion that EMEs can use OFDI as a strategy to globalize R&D and enhance their innovation performance and demonstrate that certain established assumptions regarding organizational learning are not valid for EMEs.

Citation

Piperopoulos, P., Wu, J., & Wang, C. (2018). Outward FDI, location choices and innovation performance of emerging market enterprises. Research Policy, 47(1), https://doi.org/10.1016/j.respol.2017.11.001

Journal Article Type Article
Acceptance Date Nov 1, 2017
Online Publication Date Nov 13, 2017
Publication Date Feb 1, 2018
Deposit Date Nov 8, 2017
Publicly Available Date May 14, 2019
Journal Research Policy
Print ISSN 0048-7333
Electronic ISSN 0048-7333
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 47
Issue 1
DOI https://doi.org/10.1016/j.respol.2017.11.001
Keywords Outward Foreign Direct Investment; Innovation; Organizational Learning; Geographic Location; Subsidiaries; Emerging Market Enterprises; China
Public URL https://nottingham-repository.worktribe.com/output/909415
Publisher URL https://www.sciencedirect.com/science/article/pii/S0048733317301865

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