Diverse Institutional Environments and Product Innovation of Emerging Market Firms

Jie Wu ()
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Jie Wu: University of Macau

Management International Review, 2013, vol. 53, issue 1, No 3, 39-59

Abstract: Abstract This study unbundled institutional environment into two distinct aspects: institutional distance (the degree of dissimilarity between the institutional environment of a firm’s home country and an economy into which it expands) and institutional diversity (the variety of all the institutional environments to which a firm is exposed), and related them to product innovation performance of emerging market firms. Data on 917 Chinese manufacturing firms in multiple industries over 3 years was analyzed. The results show a positive relationship between institutional distance and product innovation success. An inverted U-shaped relationship was found between the institutional diversity of a firm’s foreign markets and its product innovation success.

Keywords: Institutional environments; Institutional distance; Institutional diversity; Product innovation; Emerging markets; China (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s11575-012-0162-z

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