The effects of performance shortfalls on firms' exploitation and exploration R&D internationalization decisions: Does industry environmental matter?

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Authors: Xi Zhong, Weihong Chen and Ge Ren
Date: Apr. 2022
From: Technovation(Vol. 112)
Publisher: Elsevier Science Publishers
Document Type: Report; Brief article
Length: 242 words

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Abstract :

Keywords R&D internationalization; Performance shortfalls; Technological turbulence; Market turbulence; Competitive intensity Highlights * This study investigated how firms adjust their R&D internationalization strategies in response to performance shortfalls. * Firms will increase exploitation rather than exploration R&D internationalization in response to performance shortfalls. * When industry technological turbulence increase, the above relationship will be weakened. * When industry market turbulence increases, the above relationship will be strengthened. Abstract Building on the behavioral theory of the firm (BTF), our study investigated how firms adjust their exploitation and exploration R&D internationalization in response to performance shortfalls and how this adjustment is moderated by industry environmental factors. Using 16 years (2003--2018) of data on Chinese listed firms, our study found that in response to performance shortfalls, firms will increase exploitation R&D internationalization rather than exploration R&D internationalization. In other words, performance shortfalls negatively affect the share of exploration R&D internationalization. In addition, we also found that the relationship between performance shortfalls and the share of exploitation R&D internationalization is strengthened by industry market turbulence but weakened by industry technological turbulence. Author Affiliation: (a) School of Management, Guangdong University of Technology, Guangzhou, Guangdong, China (b) School of Economics, Guangxi University, Nanning, Guangxi, China (c) School of Business Administration, South China University of Technology, Guangzhou, Guangdong, China * Corresponding author. Article History: Received 19 April 2020; Revised 23 July 2021; Accepted 10 October 2021 Byline: Xi Zhong [HGzhongxi@163.com] (a), Weihong Chen [chenweihong@gxu.edu.cn] (b,*), Ge Ren [hrenge@yeah.net] (c)

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Gale Document Number: GALE|A696893048