IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i3p945-d313814.html
   My bibliography  Save this article

How Knowledge Acquisition Diversity Affects Innovation Performance during the Technological Catch-Up in Emerging Economies: A Moderated Inverse U-Shape Relationship

Author

Listed:
  • Qiang Li

    (School of Business, Zhejiang University City College, Hangzhou 310015, China)

  • Jing-Jing Guo

    (Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China
    School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100039, China)

  • Wei Liu

    (Business School, Qingdao University, Qingdao 266100, China)

  • Xiao-Guang Yue

    (Department of Computer Science and Engineering, School of Sciences, European University Cyprus, Nicosia 1516, Cyprus
    CIICESI-ESTG, Porto Polytechnic, Felgueiras 4610-156, Portugal)

  • Nelson Duarte

    (CIICESI-ESTG, Porto Polytechnic, Felgueiras 4610-156, Portugal)

  • Carla Pereira

    (CIICESI-ESTG, Porto Polytechnic, Felgueiras 4610-156, Portugal
    INESC TEC, Porto 4200-465, Portugal)

Abstract

Many domestic enterprises in emerging economies are concerned with the question of how to better utilize the portfolio of technology sourcing channels to achieve rapid economic growth by technological innovation. This paper looks at this issue by exploring the impacts of knowledge acquisition diversity (KAD) on innovation performance of domestic enterprises in China and the technological contexts (in terms of technology gap and technology development speed) under which KAD is most likely to contribute. Using panel data of the manufacturing industry in China over the 2001–2009 period, the results show that KAD has an inverse U-shaped relationship with innovation performance in terms of both product-related innovation performance (NPS) and knowledge-related innovation performance (PAT). Specifically, it reveals that the capability to generate technological innovation over time is dependent on how domestic enterprises manage their portfolio of knowledge sourcing channels to learn from foreign enterprises. Moreover, it is shown that the technology gap significantly moderates the inverted U-shaped relationship between KAD and both NPS and PAT. Technology development speed has a moderating effect on the inverted U-shaped relationship between KAD and innovation only in terms of NPS. The results of this study can help us to understand the relationships among technological contexts, KAD and innovation performance of domestic enterprises in emerging countries.

Suggested Citation

  • Qiang Li & Jing-Jing Guo & Wei Liu & Xiao-Guang Yue & Nelson Duarte & Carla Pereira, 2020. "How Knowledge Acquisition Diversity Affects Innovation Performance during the Technological Catch-Up in Emerging Economies: A Moderated Inverse U-Shape Relationship," Sustainability, MDPI, vol. 12(3), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:945-:d:313814
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/3/945/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/3/945/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. van de Vrande, Vareska & Vanhaverbeke, Wim & Duysters, Geert, 2009. "External technology sourcing: The effect of uncertainty on governance mode choice," Journal of Business Venturing, Elsevier, vol. 24(1), pages 62-80, January.
    2. Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
    3. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    4. Chen, Liang-Chih, 2009. "Learning through informal local and global linkages: The case of Taiwan's machine tool industry," Research Policy, Elsevier, vol. 38(3), pages 527-535, April.
    5. Kyoo-Ho Park & Keun Lee, 2006. "Linking the technological regime to the technological catch-up: analyzing Korea and Taiwan using the US patent data," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(4), pages 715-753, August.
    6. Fujimori, Azusa & Sato, Takahiro, 2015. "Productivity and technology diffusion in India: The spillover effects from foreign direct investment," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 630-651.
    7. Buckley, Peter J. & Wang, Chengqi & Clegg, Jeremy, 2007. "The impact of foreign ownership, local ownership and industry characteristics on spillover benefits from foreign direct investment in China," International Business Review, Elsevier, vol. 16(2), pages 142-158, April.
    8. Harrison, Ann & Haddad, Mona, 1993. "Are there dynamic externalities from direct foreign investment? Evidence for Morocco," MPRA Paper 36279, University Library of Munich, Germany.
    9. Hu, Albert G. Z. & Jaffe, Adam B., 2003. "Patent citations and international knowledge flow: the cases of Korea and Taiwan," International Journal of Industrial Organization, Elsevier, vol. 21(6), pages 849-880, June.
    10. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    11. Xionghe Qin & Debin Du, 2017. "Do External or Internal Technology Spillovers Have a Stronger Influence on Innovation Efficiency in China?," Sustainability, MDPI, vol. 9(9), pages 1-17, September.
    12. Davide Castellani & Antonello Zanfei, 2003. "Technology gaps, absorptive capacity and the impact of inward investments on productivity of European firms ," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 555-576.
    13. Ronald Findlay, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(1), pages 1-16.
    14. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    15. Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
    16. Yuan Zhou & Meijuan Pan & Frauke Urban, 2018. "Comparing the International Knowledge Flow of China’s Wind and Solar Photovoltaic (PV) Industries: Patent Analysis and Implications for Sustainable Development," Sustainability, MDPI, vol. 10(6), pages 1-34, June.
    17. Razvan Lungeanu & Ithai Stern & Edward J. Zajac, 2016. "When do firms change technology-sourcing vehicles? The role of poor innovative performance and financial slack," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 855-869, May.
    18. Wang, Jian-Ye & Blomstrom, Magnus, 1992. "Foreign investment and technology transfer : A simple model," European Economic Review, Elsevier, vol. 36(1), pages 137-155, January.
    19. Fagerberg, Jan & Verspagen, Bart, 2002. "Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation," Research Policy, Elsevier, vol. 31(8-9), pages 1291-1304, December.
    20. Blomstrom, Magnus & Persson, Hakan, 1983. "Foreign investment and spillover efficiency in an underdeveloped economy: Evidence from the Mexican manufacturing industry," World Development, Elsevier, vol. 11(6), pages 493-501, June.
    21. Lin, Jun-You, 2014. "Effects on diversity of R&D sources and human capital on industrial performance," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 168-184.
    22. Narula, Rajneesh & Santangelo, Grazia D., 2009. "Location, collocation and R&D alliances in the European ICT industry," Research Policy, Elsevier, vol. 38(2), pages 393-403, March.
    23. Albert G. Z. Hu & Gary H. Jefferson & Qian Jinchang, 2005. "R&D and Technology Transfer: Firm-Level Evidence from Chinese Industry," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 780-786, November.
    24. Li, Wen & Guo, Bin & Xu, Gangxiang, 2017. "Making the next move: When does the newness of experience matter in overseas sequential entries of multinational companies?," International Business Review, Elsevier, vol. 26(5), pages 908-926.
    25. Lee, Keun & Lim, Chaisung & Song, W, 2005. "Emerging Digital Technology as a Window of Opportunity and Technological Leapfrogging: Catch-up in Digital TV by the Korean Firms," MPRA Paper 109777, University Library of Munich, Germany.
    26. Doranova, Asel & Costa, Ionara & Duysters, Geert, 2010. "Knowledge base determinants of technology sourcing in clean development mechanism projects," Energy Policy, Elsevier, vol. 38(10), pages 5550-5559, October.
    27. V. Krishnan & Shantanu Bhattacharya, 2002. "Technology Selection and Commitment in New Product Development: The Role of Uncertainty and Design Flexibility," Management Science, INFORMS, vol. 48(3), pages 313-327, March.
    28. Choo Yeon Kim & Myung Sub Lim & Jae Wook Yoo, 2019. "Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    29. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    30. Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
    31. Charlene L. Nicholls‐Nixon & Carolyn Y. Woo, 2003. "Technology sourcing and output of established firms in a regime of encompassing technological change," Strategic Management Journal, Wiley Blackwell, vol. 24(7), pages 651-666, July.
    32. Liu, Xiaohui & Buck, Trevor, 2007. "Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 36(3), pages 355-366, April.
    33. Shuman Zhang & Changhong Yuan & Yuying Wang, 2019. "The Impact of Industry–University–Research Alliance Portfolio Diversity on Firm Innovation: Evidence from Chinese Manufacturing Firms," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    34. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
    35. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    36. Jianping Liu & Kai Lu & Shixiong Cheng, 2018. "International R&D Spillovers and Innovation Efficiency," Sustainability, MDPI, vol. 10(11), pages 1-23, October.
    37. Liu, Xiaohui & Zou, Huan, 2008. "The impact of greenfield FDI and mergers and acquisitions on innovation in Chinese high-tech industries," Journal of World Business, Elsevier, vol. 43(3), pages 352-364, July.
    38. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lili Mi & Xiao-Guang Yue & Xue-Feng Shao & Yuanfei Kang & Yulong Liu, 2020. "Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions," JRFM, MDPI, vol. 13(3), pages 1-22, March.
    2. Wanfang Xiong & Yan Han & M. James C. Crabbe & Xiao-Guang Yue, 2020. "Fiscal Expenditures on Science and Technology and Environmental Pollution: Evidence from China," IJERPH, MDPI, vol. 17(23), pages 1-20, November.
    3. Shilu Sun & Tiantian Li & Hong Ma & Rita Yi Man Li & Kostas Gouliamos & Jianming Zheng & Yan Han & Otilia Manta & Ubaldo Comite & Teresa Barros & Nelson Duarte & Xiao-Guang Yue, 2020. "Does Employee Quality Affect Corporate Social Responsibility? Evidence from China," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    4. Xiaoxu Zhang & Yu Song & Hongyu Liu, 2023. "Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    5. Yonghong Ma & Huili Ni & Xiaomeng Yang & Lingkai Kong & Chunmei Liu, 2023. "Government subsidies and total factor productivity of enterprises: a life cycle perspective," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 153-188, April.

    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. Fredrik Sjoholm, 1999. "Technology gap, competition and spillovers from direct foreign investment: Evidence from establishment data," Journal of Development Studies, Taylor & Francis Journals, vol. 36(1), pages 53-73.
    2. Martinez-Noya, Andrea & Narula, Rajneesh, 2018. "What more can we learn from R&D alliances? : A review and research agenda," MERIT Working Papers 2018-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Liu, Xiaohui & Zou, Huan, 2008. "The impact of greenfield FDI and mergers and acquisitions on innovation in Chinese high-tech industries," Journal of World Business, Elsevier, vol. 43(3), pages 352-364, July.
    4. Benzaim, Samia & Ftiti, Zied & Khedhaouria, Anis & Djermane, Rebai, 2023. "US foreign investments: Technology transfer, relative backwardness, and the productivity growth of host countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 275-295.
    5. Ge, Shuang & Liu, Xielin, 2022. "The role of knowledge creation, absorption and acquisition in determining national competitive advantage," Technovation, Elsevier, vol. 112(C).
    6. Yoshimichi Murakami & Keijiro Otsuka, 2017. "A Review of the Literature on Productivity Impacts of Global Value Chains and Foreign Direct Investment: Towards an Integrated Approach," Discussion Paper Series DP2017-19, Research Institute for Economics & Business Administration, Kobe University, revised Aug 2019.
    7. Yuzhe Miao & Jaeyong Song & Keun Lee & Chuyue Jin, 2018. "Technological catch-up by east Asian firms: Trends, issues, and future research agenda," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 639-669, September.
    8. Fernando Ubeda & Francisco Pérez-Hernández, 2017. "Absorptive Capacity and Geographical Distance Two Mediating Factors of FDI Spillovers: a Threshold Regression Analysis for Spanish Firms," Journal of Industry, Competition and Trade, Springer, vol. 17(1), pages 1-28, March.
    9. Wang, Yuandi & Ning, Lutao & Chen, Jin, 2014. "Product diversification through licensing: Empirical evidence from Chinese firms," European Management Journal, Elsevier, vol. 32(4), pages 577-586.
    10. Jiang, Marshall S. & Branzei, Oana & Xia, Jun, 2016. "DIY: How internationalization shifts the locus of indigenous innovation for Chinese firms," Journal of World Business, Elsevier, vol. 51(5), pages 662-674.
    11. Jason Li-Ying & Yuandi Wang & Søren Salomo & Wim Vanhaverbeke, 2013. "Have Chinese firms learned from their prior technology in-licensing? An analysis based on patent citations," Scientometrics, Springer;Akadémiai Kiadó, vol. 95(1), pages 183-195, April.
    12. Ha, Yoo Jung & Giroud, Axèle, 2015. "Competence-creating subsidiaries and FDI technology spillovers," International Business Review, Elsevier, vol. 24(4), pages 605-614.
    13. Sara L. McGaughey & Pascalis Raimondos & Lisbeth Cour, 0. "Foreign influence, control, and indirect ownership: Implications for productivity spillovers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-22.
    14. Lei Guo & Marina Yue Zhang & Mark Dodgson & David Gann & Hong Cai, 2019. "Seizing windows of opportunity by using technology-building and market-seeking strategies in tandem: Huawei’s sustained catch-up in the global market," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 849-879, September.
    15. Cesare Imbriani & Filippo Reganati, 1999. "Productivity spillovers and regional differences: some evidence on the italian manufacturing sector," CELPE Discussion Papers 48, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    16. Teixeira, Aurora A.C. & Tavares-Lehmann, Ana Teresa, 2014. "Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?," Research Policy, Elsevier, vol. 43(4), pages 737-748.
    17. Santangelo, Grazia D., 2018. "The impact of FDI in land in agriculture in developing countries on host country food security," Journal of World Business, Elsevier, vol. 53(1), pages 75-84.
    18. Badi H. Baltagi & Peter H. Egger & Michaela Kesina, 2016. "Firm‐Level Productivity Spillovers in China's Chemical Industry: A Spatial Hausman‐Taylor Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(1), pages 214-248, January.
    19. Show-Ling Jang & Shihmin Lo & Wen Hao Chang, 2009. "How do latecomers catch up with forerunners? Analysis of patents and patent citations in the field of flat panel display technologies," Scientometrics, Springer;Akadémiai Kiadó, vol. 79(3), pages 563-591, June.
    20. Caloghirou, Yannis & Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2021. "Industry-university knowledge flows and product innovation: How do knowledge stocks and crisis matter?," Research Policy, Elsevier, vol. 50(3).

    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:3:p:945-:d:313814. 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.