Previous studies have examined performance implications of institutional network for firms in large complex transition economies. However, these studies are silent on the underlying mechanisms through which embeddedness in such network is translated into firm performance. To fill this gap, we propose that corporate entrepreneurship (CE) (i.e. innovation and corporate venturing) can be viewed as a dynamic capability. Then, we argue that CE integrates institutional capital derived from institutional network with other internal and external organisational resources to create new resources and capabilities that respond to changing opportunities and challenges in the environment, thereby promoting performance outcomes. Based upon a sample of firms in China, our results support these arguments.

Local vs. non-local institutional embeddedness, corporate entrepreneurship, and firm performance in a transitional economy

An analysis of export barriers for firms in Brazil

Despite the increasing attention paid to the dispersion of research and development (R&D) activities, scholars have presented opposing arguments with respect to its effects on innovation output to date. To address this controversy, we conceptualize and empirically test a model that links different dimensions of R&D activities dispersion and innovation output. Moreover, few studies have explicitly addressed R&D activities dispersion among firms in emerging markets. Using a sample of 244 Chinese high-tech firms collected from 2000 to 2009, this study aims to determine how firms in developing countries domestically and globally distribute their activities. The results show that a firm in an emerging market with a decentralized R&D organizational structure with geographically centralized R&D activities has better innovation outputs. Moreover, institutional development positively moderates the relationship between the dispersion of R&D activities and innovation performance.

R&D activities dispersion and innovation: implications for firms in China

Purpose – This study aims at developing a better understanding of the different mechanisms that affect technology collaboration portfolio management. How do firms manage their technology collaboration portfolio? Despite some thoughtful scholars have advanced the understanding of the phenomenon of technology collaboration portfolio, there is not much research that has been done in terms of understanding the endeavors of firms when they collectively use a range of actors for the best interests of the firms. Additionally, little attention has been paid to the trade-offs and managing mechanisms for the collaborations between different partners from a portfolio-level perspective, especially in emerging markets. Design/methodology/approach – A multiple-case study of two Chinese high-tech firms, an inductive approach. Findings – The authors identified three primary mechanisms that underlie successful knowledge creation and application in technology collaboration portfolio context: informally mobilizing boundary-...

Knowledge creation and application in technology collaboration portfolio: Two cases in China

With the advent of the smart economy, Chinese digital platform companies have begun the process of digital innovation. The sudden outbreak of the COVID-19 epidemic in early 2020 has added a strong impulse to the acceleration of this process, highlighting the unique characteristics of the platform economy in resource allocation. Although digital platforms have already entered people’s daily lives, the profit mechanism of digital platforms remains a black box to be cracked for the industry. The main contribution of this paper is to propose a framework model for the profit mechanism of digital platforms, which to a certain extent solves the problems essential to the digital realm faced by many traditional enterprises in the Internet age—knowing that the profit theory of traditional monopolies is not suitable for the rapidly changing internet economy, but that most of the time people still must use it. In this new profit framework, we first use the symbiotic logic of value sharing to explain the underlying logic of platform profitability; secondly, from the perspective of resource complementarity, we find that the key to digital platform companies’ profitability lies in the symbiotic synergy between platform companies and massive userbases; lastly, our study finds that the profit condition of platform enterprises is digital capability, not system possession. This article will analyze the bottom layer of the digital economy and, by identifying the various drawbacks of the traditional industrial economic monopoly theory, propose three key factors for the profitability of platform companies in the digital age: flexible strategy, digital capabilities, and symbiotic synergy capabilities. On this basis, a theoretical model of the profit of a digital platform is constructed. Research shows that the hybrid structure of digital platforms and the need for external diversification together lead to a platform’s resilience strategy. The realization process of the platform’s strategic flexibility and the process of consumers obtaining the residual value will lead to an explosion in network effects, causing the platform and users to complete value co-creation and realize value sharing. The implementation of a flexible platform strategy also promotes the further development of a differentiation strategy and a more-refined division of labor for manufacturers, lowers the barriers-to-entry in the industry, and enables the platform and the manufacturers to realize value co-creation. On the one hand, platform enterprises can obtain greater market performance; on the other hand, users’ personalized needs can be more satisfied.

https://www.mdpi.com/2071-1050/14/19/11954/pdf?version=1663838570

A Profit Framework Model for Digital Platforms Based on Value Sharing and Resource Complementarity

Whether business groups in emerging markets are paragons or parasites is a hot topic. We focus on whether latecomer firms in China can promote their innovation performance through setting up business groups. Combining institutional theory with innovation search theory, we propose that the focused firm affiliated to a business group (i.e. administrative firm, core firm, close to core firm, and peripheral firm) has lower innovation performance. Moreover, absorptive capacity and Research & Development (R&D) alliance intensity moderate these effects. Two studies in China support our arguments.

Do Chinese business groups have better innovation performance

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R&D activities dispersion and innovation: implications for firms in China

Do Chinese business groups have better innovation performance