 Disentangling the effects of business groups in the innovation-export relationshipLichao Wu, Yingqi Wei and Chengang Wang Research Policy, 2021, vol. 50, issue 1 Abstract: This paper examines the role of business groups (BGs) in the relationship between innovation and exports. In the light of the divergent theoretical predictions on the role of BGs, we develop hypotheses that are explicitly based on the institutional context of emerging economies. By analyzing the institutional pressures under which BGs shape their strategies and operations, we formulate hypotheses on the effect of BG affiliation on exports, and the impact of innovation on exports. Empirical results, based on a large sample of Chinese manufacturing firms during the period of 1998–2007, show that both innovation and BG affiliation have a positive effect on exports, although BG affiliation weakens the positive value of innovation to exports. These findings are robust in different specifications. This paper highlights the complex role played by BGs, which needs to be understood in the context of institutions. Keywords: Innovation; Firm export performance; Business group (BG); China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:50:y:2021:i:1:s0048733320301712 DOI: 10.1016/j.respol.2020.104093 Access Statistics for this article Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray More articles in Research Policy from Elsevier |
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