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Determinants of international innovation performance in Chinese manufacturing firms: An integrated perspective

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Abstract

In an increasingly dynamic global business environment, it is of fundamental theoretical and managerial interests to understand how firms can successfully adapt to changing marketplaces through new product development. The article examines the impact of internal resources, external networks and export activities on the international innovation performance of Chinese manufacturing firms. The effect is tested simultaneously by drawing on data from a firm-level World Bank survey involving 998 manufacturing firms. A Tobit model is adopted to examine the export performance of new products. Findings from the hierarchical regressions demonstrate that local competition contributes to innovation, as do firms’ external networks. Firms involved in exporting can leverage their learning and this can be a key driver for innovation. Although higher R&D intensity may be hampered when local competition is high, returnee managers can stimulate the international innovation performance of firms in highly competitive environments.

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Acknowledgements

An earlier version of this article was presented at the 26th Annual Conference of the Euro Asia Management Studies Association in October 2009. The authors are grateful for the helpful comments from two anonymous referees of Asian Business & Management. The research was supported by the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China (10XNC003).

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Authors and Affiliations

  1. School of Business, Renmin University of China, 59 Zhong Guan Cun Avenue, Beijing, 100872, People’s Republic of China

    Ziliang Deng

  2. Department of International Business, National Chengchi University, 64, Sec.2 Zhi-Nan Road, Taipei, 11605, Taiwan

    Ruey-Jer ‘Bryan’ Jean

  3. Manchester Business School, The University of Manchester, Booth Street West, Manchester, M15 6PB, UK

    Rudolf R Sinkovics

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  1. Ziliang Deng
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Correspondence to Rudolf R Sinkovics.

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Deng, Z., Jean, RJ. & Sinkovics, R. Determinants of international innovation performance in Chinese manufacturing firms: An integrated perspective. Asian Bus Manage 11, 31–55 (2012). https://doi.org/10.1057/abm.2011.26

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