Strategy Orientation, Innovation Capacity Endowment, and International R&amp;D Intensity of Listed Companies in China

Jianhong He,Hongmin Chen,Fu-Sheng Tsai

doi:10.3390/su12010344

Abstract

Based on the endogenous factors which can affect the strategy of international R&D of China’s enterprises, an analysis is carried out on the relationship between market- and technology-orientation of the strategy and the intensity of international R&D. In addition, the mediation effects of innovation capacity endowment are discussed. On this basis, 254 listed enterprises with overseas R&D institutions approved by the Ministry of Commerce of China were taken as the sample for survey administration. The poisson regression method was adopted to test the hypotheses. Additionally, we utilized the Bootstrap method to confirm the robustness of the regression models. Results show that for Chinese enterprises with significant international R&D strategy intentions, market orientation has a significant inhibitory effect on their international R&D intensity, while the technology orientation has a significant stimulating effect on international R&D. In addition, innovation capacity has a significant positive impact on the intensity of international R&D, and plays a partial mediating role in the relationship between technology orientation and international R&D. Therefore, to promote international R&D strategies in the era of high-quality economic development, Chinese enterprises are suggested to establish an innovation-oriented strategy orientation to promote innovation cultural heritage, and to strengthen the accumulation of innovative resources and capabilities.

Highlights

The increasing competition among enterprises and the continuous reconstruction of the innovation pattern make international R&D an important and competitive strategic area, especially for emerging technology enterprises in developing economies such as China and India [1]
The average of market orientation is 9.05%, the average of technology orientation is 8.18%, and the average of innovation capacity endowment is 20.29%. These data show that international R&D enterprises have strong market orientation and technology orientation, and the level of innovation capacity endowment was high, which is consistent with our hypothesis
The possible reason for this is that the extensive international R&D based on market-seeking motives is not suitable for Chinese enterprises as they do not have the ability and conditions for large-scale implementation of technology-applied international R&D for foreign market information and technical information, which is consistent with other similar studies [2,47]

Summary

Introduction

The increasing competition among enterprises and the continuous reconstruction of the innovation pattern make international R&D an important and competitive strategic area, especially for emerging technology enterprises in developing economies such as China and India [1]. Multinational enterprises have transferred their R&D activities in the upstream links of the industrial chain overseas, thereby increasing their international R&D investment to gradually build a global R&D system. Within this context, the issue of international R&D has attracted scholarly attention. The issue of international R&D has attracted scholarly attention Among their studies, research on multinational enterprises in emerging economies focuses on the discussion of international R&D performance [2]. According to the statistics of the Ministry of Commerce of China, in the past 20 years, around 80% of Chinese companies’ foreign investment has been driven by the development of new markets, and they have not been focused on the search for international cutting-edge technology

Objectives

Results

Conclusion