TY - JOUR
T1 - Innovation and firm performance in Korea and China
T2 - A cross-context test of mainstream theories
AU - Bong Choi, Suk
AU - Williams, Christopher
PY - 2013/4
Y1 - 2013/4
N2 - We investigate the relationship between innovation and firm performance in two divergent emerging economy contexts: Korea and China. Mainstream innovation theories make disparate claims for how (1) intensity of innovation, (2) scope of innovation and (3) spillovers impact firm performance. Using a comparative institutionalist approach we hypothesise how these relationships apply to firms in Korea and China. Analysis of 897 firm-year data points over a 4-year period provides broad support for our hypotheses. Intensity of innovation (patent intensity) is a strong cross-contextual argument. Scope and spillover arguments appear to be more context-sensitive. Firms with innovation depth in specific technological fields enjoy better performance in Korea, while diversified innovation is more beneficial for firms in China. Spillovers have a stronger impact in Korea than China. The findings underline the importance of incorporating change in institutional context when developing policy and theory relating to firm innovation and performance in emerging economies.
AB - We investigate the relationship between innovation and firm performance in two divergent emerging economy contexts: Korea and China. Mainstream innovation theories make disparate claims for how (1) intensity of innovation, (2) scope of innovation and (3) spillovers impact firm performance. Using a comparative institutionalist approach we hypothesise how these relationships apply to firms in Korea and China. Analysis of 897 firm-year data points over a 4-year period provides broad support for our hypotheses. Intensity of innovation (patent intensity) is a strong cross-contextual argument. Scope and spillover arguments appear to be more context-sensitive. Firms with innovation depth in specific technological fields enjoy better performance in Korea, while diversified innovation is more beneficial for firms in China. Spillovers have a stronger impact in Korea than China. The findings underline the importance of incorporating change in institutional context when developing policy and theory relating to firm innovation and performance in emerging economies.
KW - China
KW - innovation
KW - Korea
KW - performance
UR - http://www.scopus.com/inward/record.url?scp=84875854693&partnerID=8YFLogxK
U2 - 10.1080/09537325.2013.774346
DO - 10.1080/09537325.2013.774346
M3 - Article
AN - SCOPUS:84875854693
SN - 0953-7325
VL - 25
SP - 423
EP - 444
JO - Technology Analysis and Strategic Management
JF - Technology Analysis and Strategic Management
IS - 4
ER -