The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China

Although it has been suggested that institutional context influences a firm's innovation performance, the role of regulatory institutions has been underexplored. Extending previous research, this study investigates whether and how regulatory institutions (i.e. state ownership, region-specific m...

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Main Authors: Yi, Jingtao, Hong, Junjie, Hsu, Wen chung, Wang, Chengqi
Format: Article
Published: Elservier 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/47968/
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author Yi, Jingtao
Hong, Junjie
Hsu, Wen chung
Wang, Chengqi
author_facet Yi, Jingtao
Hong, Junjie
Hsu, Wen chung
Wang, Chengqi
author_sort Yi, Jingtao
building Nottingham Research Data Repository
collection Online Access
description Although it has been suggested that institutional context influences a firm's innovation performance, the role of regulatory institutions has been underexplored. Extending previous research, this study investigates whether and how regulatory institutions (i.e. state ownership, region-specific marketization and industry-specific institutional policy) affect innovation performance of emerging market enterprises (EMEs). Evidence derived from a large sample of Chinese manufacturing firms demonstrates that state ownership positively moderates the effect of R&D intensity on innovation performance. However, state ownership is not equally beneficial for all firms. Our analysis shows that region-specific marketization and industry-specific institutional policy enhance the innovation-enhancing effect of state ownership. By revealing the role of regulatory institutions, our study points to the importance of looking beyond firm boundaries to understand why EMEs are able to innovate despite their weak internal capabilities.
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spelling nottingham-479682020-05-04T18:42:08Z https://eprints.nottingham.ac.uk/47968/ The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China Yi, Jingtao Hong, Junjie Hsu, Wen chung Wang, Chengqi Although it has been suggested that institutional context influences a firm's innovation performance, the role of regulatory institutions has been underexplored. Extending previous research, this study investigates whether and how regulatory institutions (i.e. state ownership, region-specific marketization and industry-specific institutional policy) affect innovation performance of emerging market enterprises (EMEs). Evidence derived from a large sample of Chinese manufacturing firms demonstrates that state ownership positively moderates the effect of R&D intensity on innovation performance. However, state ownership is not equally beneficial for all firms. Our analysis shows that region-specific marketization and industry-specific institutional policy enhance the innovation-enhancing effect of state ownership. By revealing the role of regulatory institutions, our study points to the importance of looking beyond firm boundaries to understand why EMEs are able to innovate despite their weak internal capabilities. Elservier 2017-04-18 Article PeerReviewed Yi, Jingtao, Hong, Junjie, Hsu, Wen chung and Wang, Chengqi (2017) The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China. Technovation, 62-63 . pp. 4-13. ISSN 0166-4972 State ownership ; Marketization ; Industry policy ; Emerging market enterprises ; Innovation performance http://www.sciencedirect.com/science/article/pii/S016649721730247X doi:10.1016/j.technovation.2017.04.002 doi:10.1016/j.technovation.2017.04.002
spellingShingle State ownership ; Marketization ; Industry policy ; Emerging market enterprises ; Innovation performance
Yi, Jingtao
Hong, Junjie
Hsu, Wen chung
Wang, Chengqi
The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China
title The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China
title_full The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China
title_fullStr The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China
title_full_unstemmed The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China
title_short The role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from China
title_sort role of state ownership and institutions in the innovation performance of emerging market enterprises: evidence from china
topic State ownership ; Marketization ; Industry policy ; Emerging market enterprises ; Innovation performance
url https://eprints.nottingham.ac.uk/47968/
https://eprints.nottingham.ac.uk/47968/
https://eprints.nottingham.ac.uk/47968/