From spark to sphere: The impact of positive innovation quality feedback on firms’ overseas R&D geographic scope

This study investigates how positive innovation quality feedback (PIQF) influences firms’ overseas R&D geographic scope. By integrating the behavioral theory of the firm (BTOF) with institutional theory, the paper argues that as PIQF increases, slack search motivation is strengthened, and firms are more likely to expand their overseas R&D geographic scope. Furthermore, the study investigates the moderating effects of formal and informal institutional factors in the home country on this relationship. Specifically, regional innovation policy support — through a series of R&D funding and technological support initiatives — weakens the positive relationship between PIQF and overseas R&D geographic scope. In contrast, Confucian culture strengthens this positive effect by fostering an open strategic vision in corporate decision-making. On the basis of panel data from Chinese listed firms between 2011 and 2022, the empirical analysis strongly supports the proposed hypotheses. This study is the first to focus on the relationship between PIQF and the overseas R&D geographic scope, offering new theoretical insights and empirical evidence for both behavioral theory and the field of overseas R&D.