Path dependence and resource availability: Process of innovation activities in Chinese family and non-family firms

Li Li Eng, Hanqing Fang, Xi Tian and T. Robert Yu

Emerging Markets Review, 2021, vol. 49, issue C

Abstract: Employing a process-based perspective and using a generalized method of moments (GMM) procedure, this paper examines the difference in innovation activities between family firms and non-family firms in China. We find that the level of research and development (R&D) by family firms is dependent on prior R&D spending and more so relative to non-family firms. Next, we find that R&D investment by family firms is more likely to be motivated by the availability of both internal and external cash flows relative to non-family firms. Further analysis suggests that these findings are unlikely to be driven by firm maturity.

Keywords: Family firms; Innovation; China; R&D spending; Financing; Cash flows (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:49:y:2021:i:c:s1566014120305884

DOI: 10.1016/j.ememar.2020.100779

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