Internationalization and firm Innovation in Emerging Markets-the moderating role of state ownership

Although prior research has long been interested in the innovation implication of internationalization, whether and how internationalization leads to better innovation performance in emerging market enterprises (EMEs) has received limited attention. This study addresses this subject by conceptualizing how Chinese EMEs’ internationalization influences their innovation activities, and whether state ownership has an impact on this relationship. Our panel data analysis of Chinese EMEs shows that internationalization has a positive effect on innovation input, and internationalized EMEs are more efficient in utilizing innovation resources. Moreover, the positive impact of internationalization on innovation activities is more significant in privately owned EMEs. These findings unpack the mechanism of how internationalization enhances firm innovation in the context of EMEs, therefore provides suggestions for EMEs on how to capture the fruits of internationalization successfully. 


Suqin Shen, Associate Professor Yunxia Zhu and Associate Professor Sunil Venaik

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