Do Chinese MNEs Always Improve Their Innovation Performance from Internationalization?

Paper presented at the 10th China goes global conference – Macerata (Italy), July 26-28

10 Pages Posted: 6 Feb 2018

See all articles by Stefano Elia

Stefano Elia

Polytechnic University of Milan - Dipartimento di Ingegneria Gestionale

Mario Kafouros

University of Leeds - Leeds University Business School (LUBS)

Lucia Piscitello

Politecnico di Milano - Dipartimento di Ingegneria gestionale

Date Written: July 26, 2016

Abstract

We examine how the innovative performance of Chinese MNEs is affected by the way in which they configure their portfolio of subsidiaries. To this end, we acknowledge that innovation performance is not an one-dimensional construct, but can vary in terms of scale and quality. We rely on an empirical analysis based on 178Chinese MNEs operating in medium-high and high tech industries, tracking their subsidiaries portfolios and the relative foreign direct investments. . Our preliminary results show that the geographical breadth (i.e. the number of countries in which each MNE has at least one subsidiary) and the geographical depth (i.e. the average number of subsidiaries in each country) are negatively associated to firm’s innovation scale but positively associated to its innovation quality. Additionally, results show that the predominance of acquisitions as entry mode is positively associated to innovation quality. Finally, high average cultural distance is negatively associated to innovation quality; however, different effects arise when considering separately individual aspects of cultural distance (i.e. educational and religious distance).

Suggested Citation

elia, stefano and Kafouros, Mario and Piscitello, Lucia, Do Chinese MNEs Always Improve Their Innovation Performance from Internationalization? (July 26, 2016). Paper presented at the 10th China goes global conference – Macerata (Italy), July 26-28 , Available at SSRN: https://ssrn.com/abstract=3111899 or http://dx.doi.org/10.2139/ssrn.3111899

Stefano Elia (Contact Author)

Polytechnic University of Milan - Dipartimento di Ingegneria Gestionale ( email )

Piazza Leonardo da Vinci, 32
Milano, 20133
Italy

Mario Kafouros

University of Leeds - Leeds University Business School (LUBS)

Leeds LS2 9JT
United Kingdom

Lucia Piscitello

Politecnico di Milano - Dipartimento di Ingegneria gestionale ( email )

20113 Milan, Milano
Italy

HOME PAGE: http://www.dig.polimi.it/eng/comunita/cl.php?id=51

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