{"title":"Underperformance duration and R&D internationalization: Institutional contingencies in an emerging economy","authors":"Shufeng Xiao , Tianjiao Yu","doi":"10.1016/j.ibusrev.2024.102302","DOIUrl":null,"url":null,"abstract":"<div><p>This paper, based on the behavioral theory of the firm (BTOF), examines the influence of underperformance duration on a firm’s R&D internationalization in terms of both scale and scope. We propose that, under the time pressure stemming from prolonged underperformance, firms increase the scale of their R&D internationalization to expedite the benefits of overseas R&D activities through enhanced synergy and learning effects. Simultaneously, they narrow the geographic scope of foreign R&D efforts to reduce the complexity of coordinating dispersed R&D locations. Additionally, we investigate how the institutional contingencies in emerging economies moderate the time pressure mechanism. We posit that state ownership weakens the relationship between underperformance duration and R&D internationalization strategies (both in terms of scale and scope), whereas regional institutional development strengthens it. We use Heckman’s two-step estimation on a sample of 485 Chinese multinational firms from 2009 to 2018, and find support for our hypotheses.</p></div>","PeriodicalId":51352,"journal":{"name":"International Business Review","volume":null,"pages":null},"PeriodicalIF":5.9000,"publicationDate":"2024-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Business Review","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0969593124000490","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper, based on the behavioral theory of the firm (BTOF), examines the influence of underperformance duration on a firm’s R&D internationalization in terms of both scale and scope. We propose that, under the time pressure stemming from prolonged underperformance, firms increase the scale of their R&D internationalization to expedite the benefits of overseas R&D activities through enhanced synergy and learning effects. Simultaneously, they narrow the geographic scope of foreign R&D efforts to reduce the complexity of coordinating dispersed R&D locations. Additionally, we investigate how the institutional contingencies in emerging economies moderate the time pressure mechanism. We posit that state ownership weakens the relationship between underperformance duration and R&D internationalization strategies (both in terms of scale and scope), whereas regional institutional development strengthens it. We use Heckman’s two-step estimation on a sample of 485 Chinese multinational firms from 2009 to 2018, and find support for our hypotheses.
期刊介绍:
The International Business Review (IBR) stands as a premier international journal within the realm of international business and proudly serves as the official publication of the European International Business Academy (EIBA). This esteemed journal publishes original and insightful papers addressing the theory and practice of international business, encompassing a broad spectrum of topics such as firms' internationalization strategies, cross-border management of operations, and comparative studies of business environments across different countries. In essence, IBR is dedicated to disseminating research that informs the international operations of firms, whether they are SMEs or large MNEs, and guides the actions of policymakers in both home and host countries. The journal warmly welcomes conceptual papers, empirical studies, and review articles, fostering contributions from various disciplines including strategy, finance, management, marketing, economics, HRM, and organizational studies. IBR embraces methodological diversity, with equal openness to papers utilizing quantitative, qualitative, or mixed-method approaches.