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Effects of Geographic Search on Product Innovation in Industrial Cluster Firms in China

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  • Wu, Aiqi
  • Wei, Jiang

Abstract

The literature suggests that cluster firms may undertake both local and nonlocal geographic searches for knowledge that contributes to their product innovation, and that cluster firms must balance their local and nonlocal searches for product innovation. Yet, previous research has seen local and nonlocal searches as one-dimensional, rather than two-dimensional, activities involving search breadth and depth. In this study, we show that local search and nonlocal search are balanced by jointly considering the breadth and depth of geographic search, and that the optimal balance depends on industry dynamism. Using a sample from two industry clusters in China, we find positive relationships between relative local search depth, relative nonlocal search breadth, and the product innovation of cluster firms. Relative local search depth and relative nonlocal search breadth contribute more to product innovation in stable industries than in dynamic industries.

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  • Wu, Aiqi & Wei, Jiang, 2013. "Effects of Geographic Search on Product Innovation in Industrial Cluster Firms in China," Management and Organization Review, Cambridge University Press, vol. 9(3), pages 465-487, November.
    • Handle: RePEc:cup:maorev:v:9:y:2013:i:03:p:465-487_00
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    Cited by:

    1. Claudius Gräbner & Anna Hornykewycz, 2022. "Capability accumulation and product innovation: an agent-based perspective," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 87-121, January.
    2. Voeten, Jaap & Saiyed, Abrar Ali & Dutta, Dev K., 2018. "Emerging Economies, Institutional Voids, and Innovation Drivers : A Study in India," Other publications TiSEM 2f47f71d-6686-4e5e-8d68-6, Tilburg University, School of Economics and Management.
    3. Lu Jiao & Kevin Baird & Graeme Harrison, 2020. "Searching in the regulatory environment: The impact of regulatory search on firm innovativeness," Australian Journal of Management, Australian School of Business, vol. 45(1), pages 153-171, February.
    4. You, Shuyang & Zhou, Kevin Zheng & Jia, Liangding, 2021. "How does human capital foster product innovation? The contingent roles of industry cluster features," Journal of Business Research, Elsevier, vol. 130(C), pages 335-347.
    5. Fei Li & Jin Chen & Ying Ying, 2019. "Innovation Search Scope, Technological Complexity, and Environmental Turbulence: A N-K Simulation," Sustainability, MDPI, vol. 11(16), pages 1-12, August.
    6. Jiang Wei & Ding Wang & Yang Liu, 2018. "Towards an asymmetry-based view of Chinese firms’ technological catch-up," Frontiers of Business Research in China, Springer, vol. 12(1), pages 1-13, December.

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