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R&D internationalization, product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises

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  • Tang, Chunhui
  • Tang, Yaojia
  • Su, Shengwei

Abstract

One motivation behind R&D internationalization for emerging market multinationals (EM MNEs) is to expand international markets. This paper analyzes whether the R&D internationalization of EM MNEs contributes to an improvement in international performance measured by foreign sales as a percentage of total sales (FSTS). Using panel data on China's listed companies, this paper introduces more scientific and normative indicators for measuring R&D internationalization in terms of geographic distribution (breadth) and overseas investment (depth). The results reveal an inverted U-shape relationship between R&D internationalization and international performance that is initially positive and eventually becomes negative. Product diversification has a significant moderating effect on the relationship between R&D internationalization breadth and international performance.

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  • Tang, Chunhui & Tang, Yaojia & Su, Shengwei, 2019. "R&D internationalization, product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises," European Management Journal, Elsevier, vol. 37(4), pages 529-539.
    • Handle: RePEc:eee:eurman:v:37:y:2019:i:4:p:529-539
    DOI: 10.1016/j.emj.2018.11.003
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