IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i1p344-d304054.html
   My bibliography  Save this article

Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China

Author

Listed:
  • Jianhong He

    (School of Economics and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China
    ANTAI College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200240, China)

  • Hongmin Chen

    (ANTAI College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200240, China)

  • Fu-Sheng Tsai

    (North China University of Water Resources and Electric Power, Zhengzhou 450046, China
    Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan
    Center for Environmental Toxin and Emerging-Contaminant Research, Cheng Shiu University, Kaohsiung 83347, Taiwan
    Super Micro Mass Research and Technology Center, Cheng Shiu University, Kaohsiung 83347, Taiwan)

Abstract

Based on the endogenous factors which can affect the strategy of international R&D of China’s enterprises, an analysis is carried out on the relationship between market- and technology-orientation of the strategy and the intensity of international R&D. In addition, the mediation effects of innovation capacity endowment are discussed. On this basis, 254 listed enterprises with overseas R&D institutions approved by the Ministry of Commerce of China were taken as the sample for survey administration. The poisson regression method was adopted to test the hypotheses. Additionally, we utilized the Bootstrap method to confirm the robustness of the regression models. Results show that for Chinese enterprises with significant international R&D strategy intentions, market orientation has a significant inhibitory effect on their international R&D intensity, while the technology orientation has a significant stimulating effect on international R&D. In addition, innovation capacity has a significant positive impact on the intensity of international R&D, and plays a partial mediating role in the relationship between technology orientation and international R&D. Therefore, to promote international R&D strategies in the era of high-quality economic development, Chinese enterprises are suggested to establish an innovation-oriented strategy orientation to promote innovation cultural heritage, and to strengthen the accumulation of innovative resources and capabilities.

Suggested Citation

  • Jianhong He & Hongmin Chen & Fu-Sheng Tsai, 2020. "Strategy Orientation, Innovation Capacity Endowment, and International R&D Intensity of Listed Companies in China," Sustainability, MDPI, vol. 12(1), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:1:p:344-:d:304054
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/1/344/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/1/344/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    2. Dang, Chongyu & (Frank) Li, Zhichuan & Yang, Chen, 2018. "Measuring firm size in empirical corporate finance," Journal of Banking & Finance, Elsevier, vol. 86(C), pages 159-176.
    3. Raghu Garud & Praveen R. Nayyar, 1994. "Transformative capacity: Continual structuring by intertemporal technology transfer," Strategic Management Journal, Wiley Blackwell, vol. 15(5), pages 365-385, June.
    4. Serapio Jr., Manuel G. & Dalton, Donald H., 1999. "Globalization of industrial R&D: an examination of foreign direct investments in R&D in the United States," Research Policy, Elsevier, vol. 28(2-3), pages 303-316, March.
    5. Masaaki Kotabe & Srini S Srinivasan & Preet S Aulakh, 2002. "Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 79-97, March.
    6. Liu, Yang & Liang, Xingkun & Shi, Yongjiang, 2018. "Brokerage and balance: Creating an effective organizational interface for product modularization in multinational R&D," Research Policy, Elsevier, vol. 47(6), pages 1133-1146.
    7. Shimizutani, Satoshi & Todo, Yasuyuki, 2008. "What determines overseas R&D activities? The case of Japanese multinational firms," Research Policy, Elsevier, vol. 37(3), pages 530-544, April.
    8. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    9. Natenapang Thongsri & Alex Kung-Hsiung Chang, 2019. "Interactions Among Factors Influencing Product Innovation and Innovation Behaviour: Market Orientation, Managerial Ties, and Government Support," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    10. Kumar, Nagesh, 2001. "Determinants of location of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations1," Research Policy, Elsevier, vol. 30(1), pages 159-174, January.
    11. Snehal Awate & Marcus M Larsen & Ram Mudambi, 2015. "Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 63-86, January.
    12. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    13. Zhou, Kevin Zheng & Gao, Gerald Yong & Yang, Zhilin & Zhou, Nan, 2005. "Developing strategic orientation in China: antecedents and consequences of market and innovation orientations," Journal of Business Research, Elsevier, vol. 58(8), pages 1049-1058, August.
    14. repec:wsi:acsxxx:v:21:y:2019:i:08:n:s1363919619500166 is not listed on IDEAS
    15. Mohammad Reza Jalilvand & Leila Nasrolahi Vosta & Rashid Khalilakbar & Javad Khazaei Pool & Reihaneh Alsadat Tabaeeian, 2019. "The Effects of Internal Marketing and Entrepreneurial Orientation on Innovation in Family Businesses," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 1064-1079, September.
    16. Adams, Pamela & Bodas Freitas, Isabel Maria & Fontana, Roberto, 2019. "Strategic orientation, innovation performance and the moderating influence of marketing management," Journal of Business Research, Elsevier, vol. 97(C), pages 129-140.
    17. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    18. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    19. Laurens Klerkx & José Guimón, 2017. "Attracting foreign R&D through international centres of excellence: early experiences from Chile," Science and Public Policy, Oxford University Press, vol. 44(6), pages 763-774.
    20. Abdullah Al Mamun & Syed Ali Fazal & Muhammad Mohiuddin & Zhan Su, 2019. "STRATEGIC ORIENTATIONS, THE MEDIATING EFFECT OF ABSORPTIVE CAPACITY AND INNOVATION: A STUDY AMONG MALAYSIAN MANUFACTURING SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-25, February.
    21. Kerstin J. Schaefer & Ingo Liefner, 2017. "Offshore versus domestic: Can EM MNCs reach higher R&D quality abroad?," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(3), pages 1349-1370, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, vol. 25(4), pages 986-996.
    3. Liefner, Ingo & Si, Yue-fang & Schäfer, Kerstin, 2019. "A latecomer firm's R&D collaboration with advanced country universities and research institutes: The case of Huawei in Germany," Technovation, Elsevier, vol. 86, pages 3-14.
    4. Liu, Yi & Li, Yuan & Xue, Jiaqi, 2011. "Ownership, strategic orientation and internationalization in emerging markets," Journal of World Business, Elsevier, vol. 46(3), pages 381-393, July.
    5. Kerstin J. Schaefer, 2020. "Catching up by hiring: The case of Huawei," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1500-1515, December.
    6. Hall, Bronwyn H., 2011. "The internationalization of R&D," MERIT Working Papers 2011-049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Saeed Samiee & Constantine S. Katsikeas & G. Tomas M. Hult, 2021. "The overarching role of international marketing: Relevance and centrality in research and practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1429-1444, October.
    8. Patrizia de Luca & Giovanna Pegan, 2016. "Business innovation and Internationalisation: Focus on the Italian Coffee Industry," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(2), pages 63-81.
    9. Yasuhiro Yamakawa & Mike W. Peng & David L. Deeds, 2008. "What Drives New Ventures to Internationalize from Emerging to Developed Economies?," Entrepreneurship Theory and Practice, , vol. 32(1), pages 59-82, January.
    10. Zeng Gang & Zhang Yi & Cao Xianzhong, 2023. "Cross-Border knowledge pipelines and innovation performance of chinese firms: evidence from Zhangjiang in Shanghai," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(1), pages 33-46, May.
    11. Bianchi, Constanza & Wickramasekera, Rumintha, 2016. "Antecedents of SME export intensity in a Latin American Market," Journal of Business Research, Elsevier, vol. 69(10), pages 4368-4376.
    12. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2017. "Gone are the creatures of yesteryear? On the diffusion of technological capabilities in the ‘modern’ MNC," Journal of World Business, Elsevier, vol. 52(1), pages 1-16.
    13. Rakesh B. Sambharya & Jooh Lee, 2014. "Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs," Management International Review, Springer, vol. 54(2), pages 137-169, April.
    14. Azlina Mohamad & Adriana Mohd Rizal & Suzilawati Kamarudin & Musli Sahimi, 2022. "Exploring the Co-Creation of Small and Medium Enterprises, and Service Providers Enabled by Digital Interactive Platforms for Internationalization: A Case Study in Malaysia," Sustainability, MDPI, vol. 14(23), pages 1-24, December.
    15. Munjal, Surender & Bhasin, Niti & Nandrajog, Divya & Kundu, Sumit, 2022. "Examining the evolution of emerging market multinational enterprises’ competitive advantages: Evidence from India," Journal of Business Research, Elsevier, vol. 145(C), pages 732-744.
    16. Tsai, Huei-Ting, 2014. "Moderators on international diversification of advanced emerging market firms," Journal of Business Research, Elsevier, vol. 67(6), pages 1243-1248.
    17. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Yan, Haifeng, 2021. "Reverse innovation transfer in Chinese MNCs: The role of political ties and headquarters," Journal of International Management, Elsevier, vol. 27(1).
    18. Riviere, Monica & Suder, Gabriele, 2016. "Perspectives on strategic internationalization: Developing capabilities for renewal," International Business Review, Elsevier, vol. 25(4), pages 847-858.
    19. Hollender, Lina & Zapkau, Florian B. & Schwens, Christian, 2017. "SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation," International Business Review, Elsevier, vol. 26(2), pages 250-263.
    20. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:1:p:344-:d:304054. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.