Outward FDI, location choices and innovation performance of emerging market enterprises
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 conceptua...
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| Format: | Article |
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Elsevier
2018
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| Online Access: | https://eprints.nottingham.ac.uk/47965/ |
| _version_ | 1848797657657507840 |
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| author | Piperopoulos, Panagiotis Wu, Jie Wang, Chengqi |
| author_facet | Piperopoulos, Panagiotis Wu, Jie Wang, Chengqi |
| author_sort | Piperopoulos, Panagiotis |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T20:07:22Z |
| format | Article |
| id | nottingham-47965 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:07:22Z |
| publishDate | 2018 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-479652020-05-04T19:30:27Z https://eprints.nottingham.ac.uk/47965/ Outward FDI, location choices and innovation performance of emerging market enterprises Piperopoulos, Panagiotis Wu, Jie Wang, Chengqi 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. Elsevier 2018-02-01 Article PeerReviewed Piperopoulos, Panagiotis, Wu, Jie and Wang, Chengqi (2018) Outward FDI, location choices and innovation performance of emerging market enterprises. Research Policy, 47 (1). pp. 232-240. ISSN 0048-7333 Outward Foreign Direct Investment; Innovation; Organizational Learning; Geographic Location; Subsidiaries; Emerging Market Enterprises; China https://www.sciencedirect.com/science/article/pii/S0048733317301865 doi:10.1016/j.respol.2017.11.001 doi:10.1016/j.respol.2017.11.001 |
| spellingShingle | Outward Foreign Direct Investment; Innovation; Organizational Learning; Geographic Location; Subsidiaries; Emerging Market Enterprises; China Piperopoulos, Panagiotis Wu, Jie Wang, Chengqi Outward FDI, location choices and innovation performance of emerging market enterprises |
| title | Outward FDI, location choices and innovation performance of emerging market enterprises |
| title_full | Outward FDI, location choices and innovation performance of emerging market enterprises |
| title_fullStr | Outward FDI, location choices and innovation performance of emerging market enterprises |
| title_full_unstemmed | Outward FDI, location choices and innovation performance of emerging market enterprises |
| title_short | Outward FDI, location choices and innovation performance of emerging market enterprises |
| title_sort | outward fdi, location choices and innovation performance of emerging market enterprises |
| topic | Outward Foreign Direct Investment; Innovation; Organizational Learning; Geographic Location; Subsidiaries; Emerging Market Enterprises; China |
| url | https://eprints.nottingham.ac.uk/47965/ https://eprints.nottingham.ac.uk/47965/ https://eprints.nottingham.ac.uk/47965/ |