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Journal of Management and Business Research, 2021
38（ 1 ）：23-53
DOI： 10.6504/JMBR.202103_38(1).0002 |
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| Corporate Innovation in China: A Political Embeddedness Perspective |
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| Innovation in developing countries has become important in the global market. However, due to the dominant role of government in most of these countries, it is thought that corporate innovation may be highly influenced by political forces. This study examines how political embeddedness influences corporate innovation. Drawing on the literature on political embeddedness and resource orchestration theory, our study argues that political embeddedness enhances firms’ incentive to structure and bundle resources to meet government demands, thus reducing corporate innovation. Firm internationalization and board R&D background weaken this negative relationship. A sample of Chinese A-share listed firms from 2008 to 2016 supports our proposed relationships. Our results still remain robust when we use a propensity-score-matched sample. |
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| innovation, political embeddedness, resource orchestration theory, developing countries |
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