TY - JOUR
T1 - Foreign Competition and Innovation:
T2 - The Mediating Role of Imitation
AU - Xia, Tianjiao
AU - Liu, Xiaohui
PY - 2017/7/27
Y1 - 2017/7/27
N2 - This study examines the extent to which foreign competition affects the innovation performance of domestic firms through imitation, given firms’ absorptive capacity. In analysing longitudinal firm‐level data from the UK, we find a mediating effect of imitation on the relationship between foreign competition and local firms’ innovation performance, and an inverted U‐shaped relationship between imitation and the innovation performance of local firms. Our findings further reveal that absorptive capacity moderates the mediating effect of imitation, diminishing innovation gains at moderate levels of imitation and mitigating the diminishing innovation performance at high levels of imitation.
AB - This study examines the extent to which foreign competition affects the innovation performance of domestic firms through imitation, given firms’ absorptive capacity. In analysing longitudinal firm‐level data from the UK, we find a mediating effect of imitation on the relationship between foreign competition and local firms’ innovation performance, and an inverted U‐shaped relationship between imitation and the innovation performance of local firms. Our findings further reveal that absorptive capacity moderates the mediating effect of imitation, diminishing innovation gains at moderate levels of imitation and mitigating the diminishing innovation performance at high levels of imitation.
UR - https://dspace.lboro.ac.uk/dspace-jspui/handle/2134/25000
U2 - 10.1111/1467-8551.12236
DO - 10.1111/1467-8551.12236
M3 - Article
SN - 1045-3172
VL - 29
SP - 464
EP - 482
JO - British Journal of Management
JF - British Journal of Management
IS - 3
ER -