IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v68y2015i5p949-956.html
   My bibliography  Save this article

Institutional constraints of product innovation in China: Evidence from international joint ventures

Author

Listed:
  • Ma, Zhenzhong
  • Yu, Mingyang
  • Gao, Chongyan
  • Zhou, Jieru
  • Yang, Zhenning

Abstract

Research interests in product innovation and relevant success factors in an international context are increasing in the past decades. With the data from over 400 international joint ventures in China's manufacturing sector, this study explores China's institutional factors that may significantly affect product innovations in international joint ventures. The results show that while total R&D investment can increase China's international joint ventures' global product sales brought by new product innovations, local professional services and infrastructure including local universities and research institutes in China can also facilitate product innovation and patent applications. In addition, local market for talents and technologies in China has negative impact on international joint ventures' efforts to sell products overseas. This paper concludes with the discussions of the implications for Chinese government and international joint ventures in China's market.

Suggested Citation

  • Ma, Zhenzhong & Yu, Mingyang & Gao, Chongyan & Zhou, Jieru & Yang, Zhenning, 2015. "Institutional constraints of product innovation in China: Evidence from international joint ventures," Journal of Business Research, Elsevier, vol. 68(5), pages 949-956.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:949-956
    DOI: 10.1016/j.jbusres.2014.09.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296314003051
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2014.09.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
    2. X. Michael Song & C. Anthony Di Benedetto & Yuzhen Lisa Zhao, 1999. "Pioneering advantages in manufacturing and service industries: empirical evidence from nine countries," Strategic Management Journal, Wiley Blackwell, vol. 20(9), pages 811-835, September.
    3. Wang, Cheng Lu & Chung, Henry F.L., 2013. "The moderating role of managerial ties in market orientation and innovation: An Asian perspective," Journal of Business Research, Elsevier, vol. 66(12), pages 2431-2437.
    4. Lisboa, Ana & Skarmeas, Dionysis & Lages, Carmen, 2011. "Innovative capabilities: Their drivers and effects on current and future performance," Journal of Business Research, Elsevier, vol. 64(11), pages 1157-1161.
    5. Guo, Hai & Xu, Erming & Jacobs, Mark, 2014. "Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms," Journal of Business Research, Elsevier, vol. 67(2), pages 116-127.
    6. Roger J. Calantone & Jeffrey B. Schmidt & X. Michael Song, 1996. "Controllable Factors of New Product Success: A Cross-National Comparison," Marketing Science, INFORMS, vol. 15(4), pages 341-358.
    7. Bowen, Frances E. & Rostami, Mahdi & Steel, Piers, 2010. "Timing is everything: A meta-analysis of the relationships between organizational performance and innovation," Journal of Business Research, Elsevier, vol. 63(11), pages 1179-1185, November.
    8. Mohan Subramaniam & Stephen R. Rosenthal & Kenneth J. Hatten, 1998. "Global New Product Development Processes: Preliminary Findings and Research Propositions," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 773-796, November.
    9. Mohan Subramaniam & N. Venkatraman, 2001. "Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 359-378, April.
    10. Shou, Zhigang & Chen, Jun & Zhu, Wenting & Yang, Lihua, 2014. "Firm capability and performance in China: The moderating role of guanxi and institutional forces in domestic and foreign contexts," Journal of Business Research, Elsevier, vol. 67(2), pages 77-82.
    11. Si, Steven X. & Bruton, Garry D., 2005. "Knowledge acquisition, cost savings, and strategic positioning: effects on Sino-American IJV performance," Journal of Business Research, Elsevier, vol. 58(11), pages 1465-1473, November.
    12. GUAN, Jian Cheng & YAM, Richard C.M. & Tang, Esther P.Y. & Lau, Antonio K.W., 2009. "Innovation strategy and performance during economic transition: Evidences in Beijing, China," Research Policy, Elsevier, vol. 38(5), pages 802-812, June.
    13. Hsu, Po-Hsuan & Wang, Chong & Wu, Chaopeng, 2013. "Banking systems, innovations, intellectual property protections, and financial markets: Evidence from China," Journal of Business Research, Elsevier, vol. 66(12), pages 2390-2396.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Weiwei Wu & Yexin Liu & Tachia Chin, 2018. "The effect of technology management capability on new product development in China’s service-oriented manufacturing firms: a social capital perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(2), pages 212-232, March.
    2. Qichao Zhang & Zhenzhong Ma & Long Ye & Ming Guo & Shuzhen Liu, 2021. "Future Work Self and Employee Creativity: The Mediating Role of Informal Field-Based Learning for High Innovation Performance," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    3. Nan Wang & Baolian Chen & Liya Wang & Zhenzhong Ma & Shan Pan, 2024. "Big data analytics capability and social innovation: the mediating role of knowledge exploration and exploitation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    4. Miaomiao Yin & Mathew Hughes & Qilin Hu, 2021. "Entrepreneurial orientation and new venture resource acquisition: why context matters," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1369-1398, December.
    5. Rui-Lin Lin, 2015. "A Study of Innovative Design and Development of Hand-Made Diet Product Series," Agriculture and Food Sciences Research, Asian Online Journal Publishing Group, vol. 2(2), pages 39-42.
    6. Houxing Tang & Zhenzhong Ma & Lei Jing, 2024. "Interfirm Network Structure and Innovation Creation: a Simulation Study," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7622-7646, June.
    7. Arshed, Noman & Hanif, Nadia & Aziz, Osama & Croteau, Martin, 2022. "Exploring the potential of institutional quality in determining technological innovation," Technology in Society, Elsevier, vol. 68(C).
    8. Huayong Du & Ying Teng & Zhenzhong Ma & Xuguang Guo, 2022. "Value Creation in Platform Enterprises: A Fuzzy-Set Qualitative Comparative Analysis," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    9. Li, Zhongshun & Xie, Weihong & Wang, Zhong & Wang, Yongjian & Huang, Danyu, 2023. "Antecedent configurations and performance of business models of intelligent manufacturing enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    10. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.
    11. Hongping Du & Liliana Mitkova & Na Wang, 2020. "The Paths of Internationalization of Chinese Innovative Firms," Sustainability, MDPI, vol. 12(6), pages 1-27, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu, Feifei & Zhu, Zhu & Zhu, Lina & Gao, Hao, 2022. "Political tie hot potato: The contingent effect of China's anti-corruption policy on cash and innovation," Research Policy, Elsevier, vol. 51(4).
    2. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    3. Adenfelt, Maria & Lagerström, Katarina, 2006. "Knowledge development and sharing in multinational corporations: The case of a centre of excellence and a transnational team," International Business Review, Elsevier, vol. 15(4), pages 381-400, August.
    4. Yang Songling & Muhammad Ishtiaq & Muhammad Anwar & Hamid Ahmed, 2018. "The Role of Government Support in Sustainable Competitive Position and Firm Performance," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    5. Ljungquist, Urban, 2012. "New Dimensions Added for Enhanced Core Competence Application," Working Papers 2012/03, Blekinge Institute of Technology, Department of Industrial Economics.
    6. Wang Juanru & Li Baolin, 2016. "Impact of Repatriate’s Knowledge Transfer on Enterprise Performance: The Mediating Effect of Ambidexterity Innovation," Journal of Systems Science and Information, De Gruyter, vol. 4(1), pages 56-67, February.
    7. Sivakumar, K. & Feng, Cong, 2019. "Patterns of product improvements and customer response," Journal of Business Research, Elsevier, vol. 104(C), pages 27-43.
    8. Mohammad, Shoeb & Husted, Bryan, 2023. "Skilled workforces and Law-abiding organizational climates in emerging markets," Journal of Business Research, Elsevier, vol. 158(C).
    9. Yamin, Mo. & Otto, Juliet, 2004. "Patterns of knowledge flows and MNE innovative performance," Journal of International Management, Elsevier, vol. 10(2), pages 239-258.
    10. Tor Helge Aas & Karl Joachim Breunig, 2017. "Conceptualizing innovation capabilities: A contingency perspective," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(1), pages 7-24.
    11. Xiaotang Zhang & Haili Zhang & Michael Song, 2019. "Does Social Capital Increase Innovation Speed? Empirical Evidence from China," Sustainability, MDPI, vol. 11(22), pages 1-22, November.
    12. Wang, Mengyang & Zheng Zhou, Kevin & Bai, Xuan & Li, Jiaxuan, 2024. "Trust asymmetry and changes in supplier opportunism: An institutional contingency view," Journal of Business Research, Elsevier, vol. 174(C).
    13. Zhang, Man & Merchant, Hemant, 2020. "A causal analysis of the role of institutions and organizational proficiencies on the innovation capability of Chinese SMEs," International Business Review, Elsevier, vol. 29(2).
    14. Haili Zhang & Michael Song & Huanhuan He, 2020. "Achieving the Success of Sustainability Development Projects through Big Data Analytics and Artificial Intelligence Capability," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
    15. Liu, Yang, 2019. "The Processes of New Product Development Recentralization towards a Transnational Emphasis in Multinational Corporations," Journal of International Management, Elsevier, vol. 25(1), pages 19-36.
    16. Osman Gök & Sinem Peker, 2017. "Understanding the links among innovation performance, market performance and financial performance," Review of Managerial Science, Springer, vol. 11(3), pages 605-631, July.
    17. Ruiqi, Wang & Wang, Fangjun & Xu, Luying & Yuan, Changhong, 2017. "R&D expenditures, ultimate ownership and future performance: Evidence from China," Journal of Business Research, Elsevier, vol. 71(C), pages 47-54.
    18. Jooyoung Kwak & Shih-Yi Chang & Meihui Jin, 2023. "The effects of political ties on innovation performance in China: Differences between central and local governments," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 300-329, February.
    19. Mo Yamin & Hsin-Ju ‘Stephie’ Tsai & Ulf Holm, 2011. "The Performance Effects of Headquarters’ Involvement in Lateral Innovation Transfers in Multinational Corporations," Management International Review, Springer, vol. 51(2), pages 157-177, April.
    20. Yang Liu, 2019. "Promoting cross-border knowledge transfer for new product development in MNCs: a process view," The Journal of Technology Transfer, Springer, vol. 44(3), pages 802-821, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:949-956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.