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Negative performance feedback and firm cooperation: How multiple upward social comparisons affect firm cooperative R&D

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  • Diwei Lv, David
  • Zhu, Hang
  • Chen, Weihong
  • Lan, Hailin

Abstract

This paper studies the impact of inconsistencies in upward social comparisons on a firm's cooperative R&D. We find that firms with inconsistent industrial and regional upward social comparison results show higher levels of cooperative R&D intensity than those with consistent results. Furthermore, in facing inconsistency, firms with a “high industrial upward social comparison gap-low regional upward social comparison gap” combination show higher levels of cooperative R&D intensity than those with a “low industrial upward social comparison gap-high regional upward social comparison gap” combination. These results indicate that inconsistent social comparison results can promote the openness of a firm's R&D. In cases of inconsistency, better regional comparison results can help a firm narrow its industrial upward social comparison gap in an open and innovative way. The above findings provide insights for policymakers committed to guiding and promoting openness in corporate innovation.

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  • Diwei Lv, David & Zhu, Hang & Chen, Weihong & Lan, Hailin, 2021. "Negative performance feedback and firm cooperation: How multiple upward social comparisons affect firm cooperative R&D," Journal of Business Research, Elsevier, vol. 132(C), pages 872-883.
    • Handle: RePEc:eee:jbrese:v:132:y:2021:i:c:p:872-883
    DOI: 10.1016/j.jbusres.2020.11.018
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