Dynamic Mechanisms of R&D Innovation in Chinese Multinational Corporations: The Impact of Government Support, Market Competition and Entrepreneurial Spirit

Abstract

This study focuses on the R&D innovation drive mechanism of Chinese multinational companies. Using a grounded theory, five driving factors were identified: government support, entrepreneurial spirit, market competition, company profits, and the innovation environment of the host country. Dynamic Qualitative Comparative Analysis was then employed to assess the validity of these driving factors and determine their pathways of influence, leading to the establishment of a driving mechanism. Finally, structural equation modeling was used to explore the magnitude of the effects of these driving factors. Based on data analysis from Chinese A-share listed multinational companies from 2007 to 2022, it was found that entrepreneurial spirit serves as the core driving force, while government support and market competition act as mediating variables that significantly promote R&D innovation among Chinese multinational companies. However, company profits were found to have a negative impact. Additionally, the innovation environment of the host country plays a moderating role, enhancing the positive effects of government support and market competition on innovation. These findings emphasize the importance of the synergy between the internal and external resources for Chinese multinational companies, providing important insights for integrating global resources to enhance international competitiveness and innovation capabilities.