Intellectual Property Rights Enforcement and Firm Performance of International New Ventures in China

Abstract

How does intellectual property rights (IPR) enforcement influence innovation and performance of international new ventures (INVs)? According to the literature on IPR enforcement, innovation, and internationalization, we predict that IPR enforcement directly and indirectly (via innovation speed and innovation quality) impacts firm performance of INVs, and international intensity (INT) moderates the indirect effects. Based on both primary data and secondary data, the empirical results indicate that IPR enforcement promotes firm performance. In addition, innovation speed and innovation quality partially mediate the relationship between IPR enforcement and firm performance. Moreover, the relationship between IPR enforcement and innovation quality is weakened with high levels of INT. Theoretical contributions, practical implications, limitations, and future research avenues are discussed.