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

Piperopoulos, P, Wu, J and Wang, C 2018, 'Outward FDI, location choices and innovation performance of emerging market enterprises', Research Policy, vol. 47, no. 1, pp. 232-240.


Document type: Journal Article
Collection: Journal Articles

Title Outward FDI, location choices and innovation performance of emerging market enterprises
Author(s) Piperopoulos, P
Wu, J
Wang, C
Year 2018
Journal name Research Policy
Volume number 47
Issue number 1
Start page 232
End page 240
Total pages 9
Publisher Elsevier BV
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.
Subject International Business
Innovation and Technology Management
Keyword(s) China
Emerging market enterprises
Geographic location
Innovation
Organizational learning
Outward foreign direct investment
Subsidiaries
DOI - identifier 10.1016/j.respol.2017.11.001
Copyright notice © 2017 Elsevier B.V. All rights reserved.
ISSN 0048-7333
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