IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i24p7225-d298669.html
   My bibliography  Save this article

R&D Internationalization and Green Innovation? Evidence from Chinese Resource Enterprises and Environmental Enterprises

Author

Listed:
  • Xun Zhang

    (Business School, Hohai University, Nanjing 211100, China)

  • Biao Xu

    (Government School, Nanjing University, Nanjing 210023, China)

Abstract

Although the importance of external involvement has been recognized in product and technology innovation, whether research and development (R&D) internationalization stimulates green innovation and under what conditions it is more effective is still unclear. To address this research gap, this study uses knowledge-based theory to explore the effect of R&D internationalization on green innovation and the moderating roles of state ownership and international experience. We examine the research hypotheses using panel data of 19,273 Chinese resource enterprises (REs) and environmental enterprises (EEs) spanning three years. The results indicate that R&D internationalization has a negative effect on green innovation in REs and EEs. Additionally, we identified a negative moderating effect of state ownership and a positive moderating effect of internationalization experience on the relationship between R&D internationalization and green innovation, which suggests that the effect is contingent on the corporation’s ownership and capability in dealing with the complexities and uncertainties inherent in international business.

Suggested Citation

  • Xun Zhang & Biao Xu, 2019. "R&D Internationalization and Green Innovation? Evidence from Chinese Resource Enterprises and Environmental Enterprises," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:7225-:d:298669
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/24/7225/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/24/7225/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sabine Brunswicker & Ulrich Hutschek, 2010. "Crossing Horizons: Leveraging Cross-Industry Innovation Search In The Front-End Of The Innovation Process," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 683-702.
    2. Yuan Li & Yi Liu & Feng Ren, 2007. "Product innovation and process innovation in SOEs: evidence from the Chinese transition," The Journal of Technology Transfer, Springer, vol. 32(1), pages 63-85, April.
    3. Jurriën Bakker & Dennis Verhoeven & Lin Zhang & Bart Van Looy, 2016. "Patent citation indicators: One size fits all?," Scientometrics, Springer;Akadémiai Kiadó, vol. 106(1), pages 187-211, January.
    4. Li, Peng-Yu & Meyer, Klaus E., 2009. "Contextualizing experience effects in international business: A study of ownership strategies," Journal of World Business, Elsevier, vol. 44(4), pages 370-382, October.
    5. Ashish Arora & Alfonso Gambardella, 2010. "Ideas for rent: an overview of markets for technology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(3), pages 775-803, June.
    6. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2009. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(2), pages 353-354, February.
    7. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    8. Andrew Delios & Paul W. Beamish, 1999. "Geographic scope, product diversification, and the corporate performance of Japanese firms," Strategic Management Journal, Wiley Blackwell, vol. 20(8), pages 711-727, August.
    9. Murray, Fiona, 2004. "The role of academic inventors in entrepreneurial firms: sharing the laboratory life," Research Policy, Elsevier, vol. 33(4), pages 643-659, May.
    10. Masaaki Kotabe & Denise Dunlap-Hinkler & Ronaldo Parente & Harsh A Mishra, 2007. "Determinants of cross-national knowledge transfer and its effect on firm innovation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 259-282, March.
    11. Lien, Yung-Chih & Piesse, Jenifer & Strange, Roger & Filatotchev, Igor, 2005. "The role of corporate governance in FDI decisions: Evidence from Taiwan," International Business Review, Elsevier, vol. 14(6), pages 739-763, December.
    12. Henrik Bresman & Julian Birkinshaw & Robert Nobel, 2010. "Knowledge transfer in international acquisitions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(1), pages 5-20, January.
    13. Zhang, Jianhong & Zhou, Chaohong & Ebbers, Haico, 2011. "Completion of Chinese overseas acquisitions: Institutional perspectives and evidence," International Business Review, Elsevier, vol. 20(2), pages 226-238, April.
    14. Mario Benassi & Matteo Landoni, 2019. "State-owned enterprises as knowledge-explorer agents," Industry and Innovation, Taylor & Francis Journals, vol. 26(2), pages 218-241, February.
    15. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    16. Di Minin, Alberto & Zhang, Jieyin & Gammeltoft, Peter, 2012. "Chinese foreign direct investment in R&D in Europe: A new model of R&D internationalization?," European Management Journal, Elsevier, vol. 30(3), pages 189-203.
    17. Chen, Chung-Jen & Huang, Yi-Fen & Lin, Bou-Wen, 2012. "How firms innovate through R&D internationalization? An S-curve hypothesis," Research Policy, Elsevier, vol. 41(9), pages 1544-1554.
    18. Iwasa, Tomoko & Odagiri, Hiroyuki, 2004. "Overseas R&D, knowledge sourcing, and patenting: an empirical study of Japanese R&D investment in the US," Research Policy, Elsevier, vol. 33(5), pages 807-828, July.
    19. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    20. Lisa Melander, 2017. "Achieving Sustainable Development by Collaborating in Green Product Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1095-1109, December.
    21. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    22. Francesca Sanna-Randaccio & Reinhilde Veugelers, 2007. "Multinational knowledge spillovers with decentralised R&D: a game-theoretic approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 47-63, January.
    23. Bruno Cassiman & Giovanni Valentini, 2016. "Open innovation: Are inbound and outbound knowledge flows really complementary?," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1034-1046, June.
    24. Jing-Wen Huang & Yong-Hui Li, 2017. "Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity," Journal of Business Ethics, Springer, vol. 145(2), pages 309-324, October.
    25. Dang, Jianwei & Motohashi, Kazuyuki, 2015. "Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality," China Economic Review, Elsevier, vol. 35(C), pages 137-155.
    26. Anupama Phene & Paul Almeida, 2008. "Innovation in multinational subsidiaries: The role of knowledge assimilation and subsidiary capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 901-919, July.
    27. Bruce Kogut, 1991. "Country capabilities and the permeability of borders," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 33-47, June.
    28. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    29. Pennings, J.M. & Barkema, H.G. & Douma, S.W., 1994. "Organizational learning and diversification," Other publications TiSEM 2cabb122-340f-4729-afb3-9, Tilburg University, School of Economics and Management.
    30. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    31. Ben Arfi, Wissal & Hikkerova, Lubica & Sahut, Jean-Michel, 2018. "External knowledge sources, green innovation and performance," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 210-220.
    32. Hagedoorn, John & Cloodt, Myriam, 2003. "Measuring innovative performance: is there an advantage in using multiple indicators?," Research Policy, Elsevier, vol. 32(8), pages 1365-1379, September.
    33. Joan Penner‐Hahn & J. Myles Shaver, 2005. "Does international research and development increase patent output? An analysis of Japanese pharmaceutical firms," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 121-140, February.
    34. Farok J. Contractor, 2007. "Is international business good for companies? The evolutionary or multi-stage theory of internationalization vs. the transaction cost perspective," Management International Review, Springer, vol. 47(3), pages 453-475, June.
    35. Sylvie Chetty & Kent Eriksson & Jessica Lindbergh, 2006. "The effect of specificity of experience on a firm's perceived importance of institutional knowledge in an ongoing business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(5), pages 699-712, September.
    36. Lee, Chang-Yang, 2010. "A theory of firm growth: Learning capability, knowledge threshold, and patterns of growth," Research Policy, Elsevier, vol. 39(2), pages 278-289, March.
    37. Arundel, Anthony, 2001. "The relative effectiveness of patents and secrecy for appropriation," Research Policy, Elsevier, vol. 30(4), pages 611-624, April.
    38. Julian Birkinshaw & Henrik Bresman & Robert Nobel, 2010. "Knowledge transfer in international acquisitions: A retrospective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(1), pages 21-26, January.
    39. Huang, Zhehao & Liao, Gaoke & Li, Zhenghui, 2019. "Loaning scale and government subsidy for promoting green innovation," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 148-156.
    40. Keith D Brouthers, 2002. "Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 203-221, June.
    41. Thomas, Douglas E., 2006. "International diversification and firm performance in Mexican firms: A curvilinear relationship?," Journal of Business Research, Elsevier, vol. 59(4), pages 501-507, April.
    42. Chengqi Wang & Junjie Hong & Mario Kafouros & Mike Wright, 2012. "Exploring the role of government involvement in outward FDI from emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(7), pages 655-676, September.
    43. Nicholas S. Argyres & Brian S. Silverman, 2004. "R&D, organization structure, and the development of corporate technological knowledge," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 929-958, August.
    44. Jens Horbach & Vanessa Oltra & Jean Belin, 2013. "Determinants and Specificities of Eco-Innovations Compared to Other Innovations--An Econometric Analysis for the French and German Industry Based on the Community Innovation Survey-super-1," Industry and Innovation, Taylor & Francis Journals, vol. 20(6), pages 523-543, August.
    45. El-Kassar, Abdul-Nasser & Singh, Sanjay Kumar, 2019. "Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 483-498.
    46. Jill E. Perry-Smith & Christina E. Shalley, 2014. "A Social Composition View of Team Creativity: The Role of Member Nationality-Heterogeneous Ties Outside of the Team," Organization Science, INFORMS, vol. 25(5), pages 1434-1452, October.
    47. Vanessa Oltra & Maïder Saint Jean, 2009. "Sectoral systems of environmental innovation: an application to the French automotive industry," Post-Print hal-00274413, HAL.
    48. J. Justin Tan & Robert J. Litsschert, 1994. "Environment‐strategy relationship and its performance implications: An empirical study of the chinese electronics industry," Strategic Management Journal, Wiley Blackwell, vol. 15(1), pages 1-20, January.
    49. Noailly, Joëlle & Ryfisch, David, 2015. "Multinational firms and the internationalization of green R&D: A review of the evidence and policy implications," Energy Policy, Elsevier, vol. 83(C), pages 218-228.
    50. Francesco Aiello & Paola Cardamone, 2008. "R&D spillovers and firms’ performance in Italy," Empirical Economics, Springer, vol. 34(1), pages 143-166, February.
    51. Snehal Awate & Marcus M Larsen & Ram Mudambi, 2015. "Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 63-86, January.
    52. Shuanglian Chen & Zhehao Huang & Benjamin M. Drakeford & Pierre Failler, 2019. "Lending Interest Rate, Loaning Scale, and Government Subsidy Scale in Green Innovation," Energies, MDPI, vol. 12(23), pages 1-22, November.
    53. Yunhui Zhao & Taiwen Feng & Hongbo Shi, 2018. "External involvement and green product innovation: The moderating role of environmental uncertainty," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1167-1180, December.
    54. Ardito, Lorenzo & Petruzzelli, Antonio Messeni & Ghisetti, Claudia, 2019. "The impact of public research on the technological development of industry in the green energy field," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 25-35.
    55. Lin Cui & Fuming Jiang, 2012. "State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(3), pages 264-284, April.
    56. Gun Jea Yu & Seung-Yoon Rhee, 2015. "Effect of R&D Collaboration with Research Organizations on Innovation: The Mediation Effect of Environmental Performance," Sustainability, MDPI, vol. 7(9), pages 1-19, August.
    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. Jianzhuang Zheng & Muhammad Usman Khurram & Lifeng Chen, 2022. "Can Green Innovation Affect ESG Ratings and Financial Performance? Evidence from Chinese GEM Listed Companies," Sustainability, MDPI, vol. 14(14), pages 1-32, July.
    2. Chen, Lifeng & Khurram, Muhammad Usman & Gao, Yuying & Abedin, Mohammad Zoynul & Lucey, Brian, 2023. "ESG disclosure and technological innovation capabilities of the Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 65(C).
    3. Wang, Xin & Ma, Chaoqun & Yao, Zheng, 2024. "The double-edged sword effect of digital capability on green innovation: Evidence from Chinese listed industrial firms," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 321-339.
    4. Jingjing Li & Gang Liu & Zihan Ma, 2021. "RD internationalization, domestic technology alliance, and innovation in emerging market," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-35, June.
    5. Meng Li & Zengrui Tian & Qian Liu & Yuzhong Lu, 2022. "Literature Review and Research Prospect on the Drivers and Effects of Green Innovation," Sustainability, MDPI, vol. 14(16), pages 1-23, August.

    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. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2015. "R&D internationalization and innovation performance," International Business Review, Elsevier, vol. 24(2), pages 187-195.
    2. Zhai, Zhe & Ghosal, Vivek, 2022. "Internationalization of innovation and firm performance in the pharmaceutical industry," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 882-905.
    3. Jingjing Li & Gang Liu & Zihan Ma, 2021. "RD internationalization, domestic technology alliance, and innovation in emerging market," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-35, June.
    4. Tang, Chunhui & Tang, Yaojia & Su, Shengwei, 2019. "R&D internationalization, product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises," European Management Journal, Elsevier, vol. 37(4), pages 529-539.
    5. Hurtado-Torres, Nuria E. & Aragón-Correa, J. Alberto & Ortiz-de-Mandojana, Natalia, 2018. "How does R&D internationalization in multinational firms affect their innovative performance? The moderating role of international collaboration in the energy industry," International Business Review, Elsevier, vol. 27(3), pages 514-527.
    6. Ferraris, Alberto & Giachino, Chiara & Ciampi, Francesco & Couturier, Jerome, 2021. "R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances," Journal of Business Research, Elsevier, vol. 128(C), pages 711-718.
    7. Mashiho Mihalache & Oli Mihalache & Jan Ende, 2021. "International Diversification and MNE Innovativeness: A Contingency Perspective of Foreign Subsidiary Portfolio Characteristics," Management International Review, Springer, vol. 61(6), pages 769-798, December.
    8. Yunlong Duan & Hanxiao Liu & Zhiqing Deng & Peng Tao, 2021. "The Impact of Cross-Border R&D Sourcing on the Innovation Quality of MNCs, from the Perspective of Business Model Innovation," Sustainability, MDPI, vol. 13(8), pages 1-22, April.
    9. Hongping Du & Liliana Mitkova & Na Wang, 2020. "The Paths of Internationalization of Chinese Innovative Firms," Sustainability, MDPI, vol. 12(6), pages 1-27, March.
    10. Lee, Jeoung Yul & Xiao, Shufeng(Simon) & Choi, Byungchul, 2021. "Unpacking the drivers of emerging market firms’ international joint venture formation: The interplay between technological innovation strategies and home- and host-institutional pressures," Journal of Business Research, Elsevier, vol. 134(C), pages 378-392.
    11. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    12. Kafouros, Mario & Wang, Chengqi & Mavroudi, Eva & Hong, Junjie & Katsikeas, Constantine S., 2018. "Geographic dispersion and co-location in global R&D portfolios: Consequences for firm performance," Research Policy, Elsevier, vol. 47(7), pages 1243-1255.
    13. Shufeng Simon Xiao & Yong Kyu Lew & Byung Il Park, 2019. "‘2R-Based View’ on the Internationalization of Service MNEs from Emerging Economies: Evidence from China," Management International Review, Springer, vol. 59(4), pages 643-673, August.
    14. Peng Xiao & Xiaoxia Sun, 2022. "Does internationalization strategy promote enterprise innovation performance?—The moderating effect of environmental complexity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1721-1733, September.
    15. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.
    16. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    17. Ester Martínez‐Ros & Rasi Kunapatarawong, 2019. "Green innovation and knowledge: The role of size," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1045-1059, September.
    18. Vrontis, Demetris & Christofi, Michael, 2021. "R&D internationalization and innovation: A systematic review, integrative framework and future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 812-823.
    19. Gonzalo Molina-Sieiro & Katia M. Galdino & R. Michael Holmes, 2023. "Ownership types, institutions, and the internationalization of emerging economy new ventures: evidence from Africa," Small Business Economics, Springer, vol. 60(3), pages 1121-1145, March.
    20. Su, Cong & Kong, Lingshuang & Ciabuschi, Francesco & Yan, Haifeng, 2021. "Reverse innovation transfer in Chinese MNCs: The role of political ties and headquarters," Journal of International Management, Elsevier, vol. 27(1).

    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:gam:jsusta:v:11:y:2019:i:24:p:7225-:d:298669. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.