Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures



Xia, Tianjiao ORCID: 0000-0001-7686-4460 and Liu, Xiaohui
(2017) Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures. Journal of International Business Studies, 48 (6). 716 - 739.

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Abstract

Competition plays an important role in creating conditions favourable to innovation. However, is this the case for all types of competition? While recognizing the importance of competition in innovation, we address this question by examining the impact of foreign and domestic competition on the innovation performance of private high-tech new ventures. We argue that the impact of foreign and domestic competition on the innovation performance of local private firms may vary, due to the different types of resource interdependence with their competitors and learning gained by private firms. To test these arguments, we conducted a multilevel analysis of 805 Chinese private high-tech firms over the period 2001–2007. Our findings suggest that foreign competition has a U-shaped relationship with the innovation performance of private firms, whereas competition from state-owned enterprises positively affects private firms’ innovation performance. Our study moves beyond the debate on whether competition increases or decreases innovation by unpacking the differential effects exerted by different types of competitors on the innovation performance of local private firms in the context of a transition economy.

Item Type: Article
Uncontrolled Keywords: resource dependence theory, foreign competition, SOE competition, innovation, multilevel analysis
Depositing User: Symplectic Admin
Date Deposited: 26 Jan 2018 15:45
Last Modified: 01 Feb 2021 13:10
DOI: 10.1057/s41267-017-0083-y
Open Access URL: https://dspace.lboro.ac.uk/dspace-jspui/handle/213...
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URI: https://livrepository.liverpool.ac.uk/id/eprint/3016929