Extant platform research focuses on how platform owners’ governance behaviors directly affect complementors. This study explicates the multilateral interdependence among different groups of producers ...within a platform ecosystem. We theorize about how platform owners’ governance design may create frictions between platform providers and complementors. While open governance grants greater autonomy to platform providers, it also cultivates a more complex ecosystem for complementors. Since ecosystem complexity raises the cost of product customization, complementors will be less willing to port an existing complement to a more complex ecosystem, that is, less likely to multihome. The negative effect is weakened as the complementor has greater experience with the destination ecosystem or when the complement exhibits a greater level of modularity. Our analysis of newly launched apps in Apple’s iOS and Google’s Android smartphone ecosystems finds supportive evidence. We discuss implications for the burgeoning literature on platform ecosystems and complementors.
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NUK, OILJ, SAZU, UKNU, UL, UM, UPUK
Although it has been suggested that institutional context influences a firm's innovation performance, the role of regulatory institutions has been underexplored. Extending previous research, this ...study investigates whether and how regulatory institutions (i.e. state ownership, region-specific marketization and industry-specific institutional policy) affect innovation performance of emerging market enterprises (EMEs). Evidence derived from a large sample of Chinese manufacturing firms demonstrates that state ownership positively moderates the effect of R&D intensity on innovation performance. However, state ownership is not equally beneficial for all firms. Our analysis shows that region-specific marketization and industry-specific institutional policy enhance the innovation-enhancing effect of state ownership. By revealing the role of regulatory institutions, our study points to the importance of looking beyond firm boundaries to understand why EMEs are able to innovate despite their weak internal capabilities.
•State ownership positively moderates the relationship between R&D and innovation.•Marketization and industry policy enhance the innovation effect of state ownership•Institutions provide the potential to pursue nonmarket strategies for innovation.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
► We test the premise that export performance is contingent on firm- and location-specific institutional idiosyncrasies. ► We demonstrate that foreign ownership, business group affiliation, and the ...degree of regional marketization positively moderate the innovation–export relationship. ► Government relationships have a stronger positive moderating effect in regions with a high level of marketization only.
We challenge the assumption that innovative capabilities are always beneficial for exporting by developing and testing the premise that export performance is contingent on firm- and location-specific institutional idiosyncrasies. Testing our framework against a large dataset for China, we demonstrate that foreign ownership, business group affiliation, and the degree of marketization of the region where the firm operates positively moderate the effects of innovative capabilities on export performance. Government relationships have a stronger positive moderating effect on the innovation–export relationship in regions with a high level of marketization only. Our findings suggest that the relationship between innovative capabilities and export performance is not uniform but rather contingent upon the institutional setting in which the firm is embedded. These results have important implications for how policymakers promote exporting and open up new theoretical avenues for conceptualizing the internationalization implications of innovation.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
•Foreign ownership exacerbates bribery intensity due to the agency problem between the headquarter and its foreign subsidiaries.•Formal institutions negatively moderate the positive relationship ...between foreign ownership and bribery intensity.•We show the substitute effects of formal institutions and external auditing in controlling this unethical activity.
In this study we examine the effectiveness of formal institutions (as the macro-level mechanism) and external auditing (as the micro-level mechanism) in controlling multinational firms’ engagement in bribery. We adopt World Bank’s data and investigate 38,673 firms in 113 countries. Our results suggest that a firm’s engagement in bribery is positively related to its foreign ownership. Furthermore, we demonstrate the substitute effects of formal institutions and external auditing in controlling this unethical activity. We argue that in a situation whereby formal institutions are weak, a firm’s internal governance mechanism plays a vital role in controlling bribery.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
This study examines the degree of state ownership on corporate bribery. Integrating the theories of state ownership and corporate corruption, we propose that state ownership influences bribery ...propensity and bribery intensity in different ways; it lowers a firm’s tendency to pay bribes but increases the relative amount of bribery payment. Building on the control rights/bargaining hypotheses, we demonstrate that state ownership shields firms from bribery demands by reducing administrative hurdles that include bureaucratic requirements of obtaining licenses or settling taxes in business operations. However, state ownership elevates the level of bribes by weakening their capital mobility. Using a sample of 23,018 firms from 54 countries covering 2006 to 2013, we find evidence to support our hypotheses. This article contributes to corruption research by drawing attention to an important channel of corruption and by highlighting the importance of considering not only the propensity but also the intensity of bribe payments.
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NUK, OILJ, SAZU, UKNU, UL, UM, UPUK
This paper develops a dynamic discrete-choice model to analyze the exporting decisions of Chinese firms in Zhejiang province. The results show that sunk costs are found to be significant and prior ...export experience, productivity, scale, FDI, export spillovers, coastal area and economic zones are all positively related with the propensity of exporting while state ownership concentration has a negative impact. The export behavior of firms varies with country-specific characteristics.
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BFBNIB, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
We examine the effect of corruption and institutions on inward foreign direct investment (FDI) along different investment phases in host countries. We contribute to the literature by distinguishing ...the propensity and the stock of FDI to better clarify the relationship between corruption and FDI, and by substantiating an integrated formal and informal institution-based view. The results support both the ‘corruption as sand’ theory and the ‘corruption as grease’ theory after controlling for the location selection processes of multinational enterprises. We also show that investment freedom and press freedom negatively moderate the relationship between corruption and the propensity and the stock of FDI. Our conclusions may inspire governments in their policy decisions towards controlling corruption and promoting FDI.
► We integrate the Uppsala model, international new ventures and trade theories. ► Firm heterogeneity and sunk costs significantly influence the export decision. ► Industry competition and spatial ...concentration are also important. ► The relationships are not always uniform and depend on firm-specific idiosyncrasies.
Integrating perspectives of the Uppsala model of internationalization process, international new ventures and trade theories of heterogeneous firms, this paper develops a dynamic discrete-choice model of export decisions by a profit-maximizing firm. Empirical analyses based on a panel data set of Chinese firms show that sunk costs, productivity, firm size, foreign ownership, industry competition and spatial concentration are positively associated with the decision to export, while state ownership has a negative association with the probability of exporting. However, we find that the relationships are not always uniform and depend on firm-specific idiosyncrasies. The results show that foreign-invested firms and large firms (regardless of ownership) rely on productivity performance related advantages for expanding overseas, while domestic firms, especially small- and medium-sized enterprises, build competitive advantage by leveraging agglomeration economies and the associated spillovers. Our results highlight the role of firm heterogeneity, sunk costs and spatial concentration in shaping the export behavior of firms.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
This study examines the role of region-specific institutions in explaining foreign direct investment (FDI) spillovers. The findings reveal that domestic firms in different regions of China do not ...equally benefit from inward FDI. Firms that operate in regions with higher levels of intellectual property right protection, market development and international openness are better able to absorb spillovers and improve their productivity. By demonstrating how subnational location-bound institutions influence the spillover effects of FDI, the paper extends prior literature that largely focuses on either firm- and industry-specific determinants or on countrylevel institutional idiosyncrasies.
This paper examines the effects of ownership types on firms’ R&D intensity and innovation performance, using a sample of 357,857 Chinese firms from 2005–2007. This study finds considerable divergence ...among Chinese domestic enterprises in terms of R&D intensity and innovation performance. Firms owned by the central government are the key drivers for firms’ R&D activities, while local government, private and foreign ownerships are negatively related to both R&D intensity and innovation performance. Significant divergence within government ownership category and argues that China’s institutional changes generate varied government ownership groups with different levels of resource endowment, which in turn influence firms’ R&D activities.
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