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Dynamic process: international diversification and innovation performance from emerging economies
Du Jian,Zheng Qiuxia,Chang Xiaoran 기술경영경제학회 2020 ASIAN JOURNAL OF TECHNOLOGY INNOVATION Vol.28 No.2
Drawing upon the transaction cost economics and organizational learning theory, this study examines how international diversification affects firm's innovation performance. With a longitudinal data set obtained from a sample of 73 Chinese firms in information communication equipment manufacturing industry, home appliances manufacturing industry, and low voltage apparatus and cable manufacturing industry, we find a curvilinear inverted S-shaped relationship between international diversification and innovation performance. It implies that emerging enterprises might gain increase at the expansion stage, experience a hard time at the conflict stage, and then reap again at the convergence phase.