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, 47 (1). pp. 232-240.

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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.

Item Type:	Article
Uncontrolled Keywords:	outward foreign direct investment, innovation, organisational learning, geographical location, subsidiaries, emerging market enterprises, China
Depositing User:	Symplectic Admin
Date Deposited:	02 Nov 2017 09:46
Last Modified:	19 Jan 2023 06:51
DOI:	10.1016/j.respol.2017.11.001
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3011331