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Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
journal contributionposted on 2017-04-28, 13:23 authored by Tianjiao Xia, Xiaohui Liu
Competition plays an important role in creating conditions favourable to innovation. However, is this the case for all types of competition? While recognizing the importance of competition in innovation, we address this question by examining the impact of foreign and domestic competition on the innovation performance of private high-tech new ventures. We argue that the impact of foreign and domestic competition on the innovation performance of local private firms may vary, due to the different types of resource interdependence with their competitors and learning gained by private firms. To test these arguments, we conducted a multilevel analysis of 805 Chinese private high-tech firms over the period 2001-2007. Our findings suggest that foreign competition has a U-shaped relationship with the innovation performance of private firms, whereas competition from state-owned enterprises positively affects private firms’ innovation performance. Our study moves beyond the debate on whether competition increases or decreases innovation by unpacking the differential effects exerted by different types of competitors on the innovation performance of local private firms in the context of a transition economy.
- Business and Economics
Published inJournal of International Business Studies
Pages716 - 739
CitationXIA, T. and LIU, X., 2017. Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures. Journal of International Business Studies, 48 (6), pp. 716–739.
Publisher© Academy of International Business. Published by Palgrave Macmillan
- AM (Accepted Manuscript)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
NotesThis is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version XIA, T. and LIU, X., 2017. Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures. Journal of International Business Studies, 48 (6), pp. 716–739. is available online at: https://doi.org/10.1057/s41267-017-0083-y