Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development

Wu, J, Wang, C, Hong, J and Piperopoulos, P 2016, 'Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development', Journal of World Business, vol. 51, no. 2, pp. 251-263.


Document type: Journal Article
Collection: Journal Articles

Title Internationalization and innovation performance of emerging market enterprises: The role of host-country institutional development
Author(s) Wu, J
Wang, C
Hong, J
Piperopoulos, P
Year 2016
Journal name Journal of World Business
Volume number 51
Issue number 2
Start page 251
End page 263
Total pages 13
Publisher Pergamon Press
Abstract We examine how host-country institutional development influences innovation performance of internationalized emerging market enterprises (EMEs). Our panel-data analysis of Chinese EMEs shows that although host-country institutional development on average enhances innovation performance of the parent, such effects are more pronounced for EMEs with strong absorptive capacity and for those diversifying into a larger number of countries. Interestingly, EMEs with a higher level of state ownership gain more when entering countries with a lower level of institutional development. Our findings offer insights regarding how latecomer EMEs should configure their portfolio of subsidiaries in order to enhance innovation performance of their parent.
Subject International Business
Innovation and Technology Management
Keyword(s) Absorptive capacity
Geographic diversification
Innovation performance
Institutional environment
Internationalization
State ownership
DOI - identifier 10.1016/j.jwb.2015.09.002
Copyright notice © 2015 Elsevier Inc. All rights reserved.
ISSN 1090-9516
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