Foreign Competition and Innovation: The Mediating Role of Imitation

Xia, Tianjiao ORCID: 0000-0001-7686-4460 and Liu, Xiaohui
(2018) Foreign Competition and Innovation: The Mediating Role of Imitation. British Journal of Management, 29 (3). 464 - 482.

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This study examines the extent to which foreign competition affects the innovation performance of domestic firms through imitation, given firms’ absorptive capacity. In analysing longitudinal firm‐level data from the UK, we find a mediating effect of imitation on the relationship between foreign competition and local firms’ innovation performance, and an inverted U‐shaped relationship between imitation and the innovation performance of local firms. Our findings further reveal that absorptive capacity moderates the mediating effect of imitation, diminishing innovation gains at moderate levels of imitation and mitigating the diminishing innovation performance at high levels of imitation.

Item Type: Article
Depositing User: Symplectic Admin
Date Deposited: 26 Jan 2018 15:55
Last Modified: 01 Feb 2021 13:10
DOI: 10.1111/1467-8551.12236
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