Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

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 inno...

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Main Authors:	Tianjiao Xia, Xiaohui Liu
Format:	Default Article
Published:	2017
Subjects:	Other commerce, management, tourism and services not elsewhere classified Resource dependence theory Foreign competition SOE competition Innovation Multilevel analysis Business and Management not elsewhere classified
Online Access:	https://hdl.handle.net/2134/24852
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id	rr-article-9504146
record_format	Figshare
spelling	rr-article-95041462017-06-06T00:00:00Z Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures Tianjiao Xia (1250577) Xiaohui Liu (1254282) Other commerce, management, tourism and services not elsewhere classified Resource dependence theory Foreign competition SOE competition Innovation Multilevel analysis Business and Management not elsewhere classified 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. 2017-06-06T00:00:00Z Text Journal contribution 2134/24852 https://figshare.com/articles/journal_contribution/Foreign_competition_domestic_competition_and_innovation_in_Chinese_private_high-tech_new_ventures/9504146 CC BY-NC-ND 4.0
institution	Loughborough University
collection	Figshare
topic	Other commerce, management, tourism and services not elsewhere classified Resource dependence theory Foreign competition SOE competition Innovation Multilevel analysis Business and Management not elsewhere classified
spellingShingle	Other commerce, management, tourism and services not elsewhere classified Resource dependence theory Foreign competition SOE competition Innovation Multilevel analysis Business and Management not elsewhere classified Tianjiao Xia Xiaohui Liu Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
description	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.
format	Default Article
author	Tianjiao Xia Xiaohui Liu
author_facet	Tianjiao Xia Xiaohui Liu
author_sort	Tianjiao Xia (1250577)
title	Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
title_short	Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
title_full	Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
title_fullStr	Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
title_full_unstemmed	Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures
title_sort	foreign competition, domestic competition and innovation in chinese private high-tech new ventures
publishDate	2017
url	https://hdl.handle.net/2134/24852
_version_	1797827637752627200

Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

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