Work

The Impact of Institutional Distance on Innovation Performance in Chinese Reverse OFDI: Moderating Effects of Cultural Distance and Internationalization Experience

Year: 2023

Type: article

Abstract: In contrast to developed economies, emerging market economies exhibit varied directions of investment based on the host country’s economic level. This paper investigates the crucial role of institutional distance in reverse outward foreign direct investment (OFDI) from China and its mechanism of influencing corporate innovation. We combine institutional theory with the resource-based view and utilize a zero-inflation negative binomial model to test samples of Chinese listed companies. Our results demonstrate that institutional distance positively impacts parent corporate innovation performance in reverse OFDI. Additionally, we creatively examine the interaction between institutional distance and cultural distance, enriching relevant research context. By studying two types of moderating variables, we attempt to seek effective ways to actively cope with this influence. The dual definition of both an organization’s internationalization and top management team’s (TMT’s) overseas background expands the theoretical margin of internationalization experience.

Source: IEEE Access

DOI: 10.1109/access.2023.3318255

Authors: Jing Liu, Zhixiao Ye, Zahid Shafait, Juan Jiang

Institutions: Ludong University, Zhejiang Shuren University, Zhejiang Normal University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,950