Internationalization, innovation, and firm performance: An empirical study on Hubei Province

Abstract

Abstract: Innovation is the motivation and origin of enterprise development,but not all firms are able to reap rewards from innovation. As evidence from empirical studies reveals the vast variance in the return of innovation, the variance is tried to explain from the standpoint of internationalization. Initially,the relationship between innovation and firm performance is discussed,and then based on the technological capability theories, the study explains how and why the Degree Of Internationalization(DOI) has the influences on the return of innovation and a corresponding theoretical model is established. Through the empirical research on the panel data of 49 industrial enterprises in Hubei Province, it is found that the DOI is an important moderator of the relationship between innovation and performance; internationalization enhances a firm's capacity to improve performance through innovation. Firms with different level of DOI differ considerably in the return of innovation.

Key words: DOI, knowledge spillover, economy of scale

CLC Number:

F406.3

Hai Benlu, Nie Ming. Internationalization, innovation, and firm performance: An empirical study on Hubei Province[J]. Science Research Management, 2012, (4): 1-9.

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