The impact of OFDI on firm innovation in an emerging country Online publication date: Wed, 12-Apr-2017
by Hang Wu; Jin Chen; Yang Liu
International Journal of Technology Management (IJTM), Vol. 74, No. 1/2/3/4, 2017
Abstract: This study investigates whether and to what extent EM MNEs employ OFDI for knowledge-seeking and knowledge-integration purposes to improve their innovation capability at home. Extending previous studies that have identified the knowledge-seeking motives and also provided some evidence for their validity, our study aims to examine how such OFDI can benefit the innovation performance of EM MNEs at home. Using survey data from a sample of manufacturing firms in China, we demonstrate that OFDI is positively related to innovation performance. We also find that the positive relationship between OFDI and innovation performance is stronger when foreign firms have acquired an ownership interest in an EM MNE and when they have higher R&D intensity. Finally, theoretical and managerial implications are discussed.
Online publication date: Wed, 12-Apr-2017
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com