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Crisis-Induced Innovation: Quality Upgrading in Chinese Industrial Clusters

Author

Listed:
  • Xiangting Hu
  • Jianqing Ruan
  • Xiaobo Zhang

Abstract

Supporting institutions and policies play a key role in facilitating upgrades to product quality among manufacturing firms. However, the emergence of quality-supporting institutions has not been well studied. Based on qualitative and quantitative evidence in Chinese clusters, this paper shows that quality-enhancing institutions and policies often emerge in response to crises, such as consumer boycotts and impositions of export barriers, which can catalyze collective action from entrepreneurs and local governments to improve product quality. (JEL codes: L15; L22; L51; L60).

Suggested Citation

  • Xiangting Hu & Jianqing Ruan & Xiaobo Zhang, 2021. "Crisis-Induced Innovation: Quality Upgrading in Chinese Industrial Clusters," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 37(3), pages 571-606.
    • Handle: RePEc:oup:jleorg:v:37:y:2021:i:3:p:571-606.
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    File URL: http://hdl.handle.net/10.1093/jleo/ewab008
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    Citations

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    Cited by:

    1. Han-Sol Lee & Sergey U. Chernikov & Szabolcs Nagy & Ekaterina A. Degtereva, 2022. "The Impact of National Culture on Innovation: A Comparative Analysis between Developed and Developing Nations during the Pre- and Post-Crisis Period 2007–2021," Social Sciences, MDPI, vol. 11(11), pages 1-14, November.
    2. James, Steffan & Liu, Zheng & Stephens, Victoria & White, Gareth R.T., 2022. "Innovation in crisis: The role of ‘exaptive relations’ for medical device development in response to COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 182(C).

    More about this item

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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