TY - JOUR
T1 - Institutional Distance, Organizational Learning, and Innovation Performance
T2 - Outward Foreign Direct Investment by Chinese Multinational Enterprises
AU - Yi, Changjun
AU - Xu, Xueyu
AU - Chen, Chusheng
AU - Wu, Yenchun Jim
N1 - Publisher Copyright:
©, Copyright © Taylor & Francis Group, LLC.
PY - 2020/1/26
Y1 - 2020/1/26
N2 - Institutional distance is the difference in institutional environments between a multinational company’s host country and its home country. This article explores the effects of formal and informal institutional distance (IID) on the innovation performance of Chinese multinationals with outward foreign direct investment (OFDI), as well as the moderating role of organizational learning in the relationship. The results suggested that a formal institutional distance (FID) paradox existed between the FID and OFDI firms’ innovation performance; the informal institutional distance inhibited the technology transfer from foreign subsidiaries to their parent companies and the growth of the parent companies’ innovation performance; exploratory learning can effectively attenuate the negative influence of IID on OFDI firms’ innovation performance.
AB - Institutional distance is the difference in institutional environments between a multinational company’s host country and its home country. This article explores the effects of formal and informal institutional distance (IID) on the innovation performance of Chinese multinationals with outward foreign direct investment (OFDI), as well as the moderating role of organizational learning in the relationship. The results suggested that a formal institutional distance (FID) paradox existed between the FID and OFDI firms’ innovation performance; the informal institutional distance inhibited the technology transfer from foreign subsidiaries to their parent companies and the growth of the parent companies’ innovation performance; exploratory learning can effectively attenuate the negative influence of IID on OFDI firms’ innovation performance.
KW - OFDI
KW - innovation performance
KW - institutional distance
KW - organizational learning
UR - http://www.scopus.com/inward/record.url?scp=85060334571&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85060334571&partnerID=8YFLogxK
U2 - 10.1080/1540496X.2018.1545118
DO - 10.1080/1540496X.2018.1545118
M3 - Article
AN - SCOPUS:85060334571
SN - 1540-496X
VL - 56
SP - 370
EP - 391
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 2
ER -
