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The peer contagion effects and firms' innovation: Evidence from China

Author

Listed:
  • Xian Qin
  • Shiqiang Zhang
  • Xianchun Liao
  • Haitao Niu
  • Antony Dnes

Abstract

The existing researches on firms' innovation ignore the influence of peer firms; thus, this paper empirically examines the peer contagion effects of firms' innovation in China. The results indicate firms' innovation is significantly influenced by peers, and the macro‐marketization and meso‐industry competition promote the effects, whereas the micro firm managerial ability inhibits them. The study also finds the influence mechanism in breakthrough innovation and incremental innovation is different. Further prioritization tests reveal marketization, and industry competition prioritizes the effects over managerial ability. Our conclusions enrich literature on peer contagion effects, factors influencing innovation, and dual innovation theory.

Suggested Citation

  • Xian Qin & Shiqiang Zhang & Xianchun Liao & Haitao Niu & Antony Dnes, 2023. "The peer contagion effects and firms' innovation: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1004-1019, March.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:2:p:1004-1019
    DOI: 10.1002/mde.3727
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