IDEAS home Printed from https://ideas.repec.org/a/taf/mimoxx/v49y2019i2p173-190.html
   My bibliography  Save this article

How Does Competition By Informal Firms Affect The Innovation In Formal Firms?

Author

Listed:
  • Jorge A. Heredia Pérez
  • Xiaohua Yang
  • Ou Bai
  • Alejandro Flores
  • Walter Heredia Heredia

Abstract

This study applies a resource-based perspective to investigate how competition by informal firms affects innovation in formal firms in China. By analyzing survey data, collected from 1,686 Chinese manufacturing firms, we find that formal firms tend to increase their rate of innovation when faced with informal competition. However, formal firms’ access to increased global supply chain collaboration mitigates the challenges presented to their rate of innovation by the informal firms. We present implications for future research, practice, and policy-making.

Suggested Citation

  • Jorge A. Heredia Pérez & Xiaohua Yang & Ou Bai & Alejandro Flores & Walter Heredia Heredia, 2019. "How Does Competition By Informal Firms Affect The Innovation In Formal Firms?," International Studies of Management & Organization, Taylor & Francis Journals, vol. 49(2), pages 173-190, April.
    • Handle: RePEc:taf:mimoxx:v:49:y:2019:i:2:p:173-190
    DOI: 10.1080/00208825.2019.1608402
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00208825.2019.1608402
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00208825.2019.1608402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elchin Aghazada & Gaygysyz Ashyrov, 2021. "Corruption And Firm Innovation: Evidence From Post-Soviet Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 129, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Zhao, Nan & Liu, Xiaojie & Zhang, Zizhe, 2022. "Does competition from the informal sector affect firms’ energy intensity? Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 130-142.
    3. Omar Farooq & Khondker Aktaruzzaman & Harit Satt & Fatima Zahra Bendriouch, 2022. "Innovations as a Response to Shadow Economy: Evidence from Privately Held Firms," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 349-370, December.
    4. Dorgyles C. M. Kouakou, 2023. "Competing against ‘invisibles’: the effect of competition from informal firms on formal firms’ R&D," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 87-117, March.
    5. Fernandez, Viviana, 2022. "Environmental management: Implications for business performance, innovation, and financing," Technological Forecasting and Social Change, Elsevier, vol. 182(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:mimoxx:v:49:y:2019:i:2:p:173-190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/mimo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.