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Double-edged sword effect of independent innovations and foreign cooperation: evidence from China

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  • Longwei Tian

    (Shanghai Jiao Tong University)

  • Yuan Li

    (Shanghai Jiao Tong University)

Abstract

How do independent innovations impact firm performance? Based upon exploratory learning perspective, we argue that independent innovations will exhibit a double-edged sword effect on firm performance over time. Further, we view cooperation with foreign partners as complementary assets, and examine the dynamical moderating effect of such complementary assets on the relationship between independent innovations and firm performance. By analyzing a sample of Chinese firms, we find that independent innovations can enhance long term firm performance, but dampen short term firm performance. Further, our results show that cooperating with foreign partners as complementary assets will improve the relationship between independent innovations and firm short term performance.

Suggested Citation

  • Longwei Tian & Yuan Li, 2017. "Double-edged sword effect of independent innovations and foreign cooperation: evidence from China," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1276-1291, December.
    • Handle: RePEc:kap:jtecht:v:42:y:2017:i:6:d:10.1007_s10961-016-9511-6
    DOI: 10.1007/s10961-016-9511-6
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    Cited by:

    1. Chen, Yen-Chun & Lin, Ya-Hui & Li, Po-Chien & Chen, Chung-Jen, 2022. "Understanding the interplay between competitor and alliance orientations in product innovativeness: An integrative framework," Technological Forecasting and Social Change, Elsevier, vol. 175(C).

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    More about this item

    Keywords

    Independent innovations; Foreign cooperation; Short term performance; Long term performance;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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