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R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective

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  • Lewellyn, Krista B.
  • Bao, Shuji ‘Rosey’

Abstract

Investing in R&D is particularly relevant for firms competing in today’s globalized knowledge-based economy. This multilevel study offers a national culture perspective integrated with the behavioral theory of the firm to test whether outperforming industry peers motivates subsequent R&D investment in a sample of paper products industry firms from 13 countries. We also hypothesize and find that home country cultural dimensions (institutional collectivism, power distance, and uncertainty avoidance) create a context that either encourages or discourages firm-level R&D investment. Additionally, we evaluate the cross-level moderating effects of culture to explore how the strength of the firm-level relationship between outperforming industry peers and R&D investment changes as a function of cultural context. Our multilevel analysis demonstrates outperforming industry peers and national culture are both important for explaining variance in firm-level R&D investment in the global paper industry.

Suggested Citation

  • Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2015. "R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective," Journal of International Management, Elsevier, vol. 21(1), pages 1-17.
    • Handle: RePEc:eee:intman:v:21:y:2015:i:1:p:1-17
    DOI: 10.1016/j.intman.2014.12.001
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