The impact of firm internationalisation on innovation persistence: the moderating effect of executives’ overseas background

Xin Xu and Meiya Sun

European Journal of Innovation Management, 2025, vol. 28, issue 10, 5128-5150

Abstract: PurposeThe link between firm internationalisation and innovation persistence is underexplored. Hence, we sought to determine whether and how firm internationalisation improves innovation persistence, and whether executives’ overseas backgrounds moderate the relationship between the two based on the high-order ladder theory.Design/methodology/approachWe built a panel dataset based on the data of 1,884 Chinese A-share listed firms’ patents as well as firm internationalisation spanning 2010 to 2022. We employed a fixed-effects model to validate the conceptual framework and test the hypotheses.FindingsFirm internationalisation plays a significant role in fostering innovation persistence. This suggests that executives’ overseas background enhances the contribution of firm internationalisation to innovation persistence. In addition, firm internationalisation can contribute to innovation persistence by alleviating financing constraints, increasing redundant resources, and improving absorptive capacity. The positive effect of firm internationalisation on innovation persistence is more pronounced in manufacturing firms and companies with higher internal control.Practical implicationsThis study enriches research on the economic effects of firm internationalisation and innovation persistence, thereby broadening the scope of research on firm internationalsation theory. It helps countries and enterprises formulate and implement relevant public policies, thereby optimizing the business environment.Originality/valueThis study advances our understanding of the antecedents of innovation persistence through the lens of firm internationalisation and uncovers the boundary conditions under which firm internationalisation influences innovation persistence, thereby enriching the theoretical framework of innovation persistence.

Keywords: Firm internationalisation; Innovation persistence; Executives’ overseas background (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/ejim/article/28/10/5128/12 ... ernationalisation-on (text/html)
https://www.emerald.com/ejim/article-pdf/28/10/512 ... m-07-2024-0855en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ejimpp:ejim-07-2024-0855

DOI: 10.1108/EJIM-07-2024-0855

Access Statistics for this article

European Journal of Innovation Management is currently edited by Dr Vincenzo Corvello

More articles in European Journal of Innovation Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().