Determinants of international innovation performance in Chinese manufacturing firms: An integrated perspective

In an increasingly dynamic global business environment, it is of fundamental theoretical and managerial interests to understand how firms can successfully adapt to changing marketplaces through new product development. The article examines the impact of internal resources, external networks and export activities on the international innovation performance of Chinese manufacturing firms. The effect is tested simultaneously by drawing on data from a firm-level World Bank survey involving 998 manufacturing firms. A Tobit model is adopted to examine the export performance of new products. Findings from the hierarchical regressions demonstrate that local competition contributes to innovation, as do firms' external networks. Firms involved in exporting can leverage their learning and this can be a key driver for innovation. Although higher R&D intensity may be hampered when local competition is high, returnee managers can stimulate the international innovation performance of firms in highly competitive environments. Asian Business & Management (2012) 11, 31-55. doi: 10.1057/abm.2011.26; published online 16 November 2011