Recombination for innovation: performance outcomes from international partnerships in China

Abstract

This paper examines the relationship between different types of international partnerships and innovation performance. By drawing on a conceptual framework which outlines how new bundles of transferrable and nontransferrable ownership advantages are created from such partnerships (Collinson and Narula, ), we analyze empirical evidence from a large‐scale survey of 320 individual company responses from the China‐based operations of foreign multinational firms alongside in‐depth case studies. Our study reveals that different types of collaborative partnerships (cooperative vs. competitive) are associated with different innovation performance outcomes (product vs. process innovation). In addition, we find that a sustainable, reciprocal relationship between collaborative partners can generate superior innovation performance. Contextual factors including the role of government and industry characteristics have an important bearing on innovation performance in collaborative partnerships in China. We conclude with implications for researchers, managers, and policymakers.

Challenges for foreign companies in China: implications for research and practice

“…Third, foreign firms in China also come across significant management challenges, notably innovation management. Whereas China used to absorb knowledge from foreign MNEs through international collaborations (Collinson and Liu 2019;Herrigel et al 2013;Ning et al 2017;Zhao and Anand 2013), it now encourages home-grown innovation by launching international M&As and attracting high-skilled returnees. Consequently, foreign MNEs need to consider the new aspects of innovation management, such as micro-foundations in collaborative relationships with Chinese partners or the presence of indigenous innovation.…”

“…Innovation management in China is an important topic for both foreign firms and domestic stakeholders. It has been manifested largely through collaborative partnerships between foreign firms and domestic ones (Collinson and Liu 2019) in the form of joint ventures (Zhou and Li 2008) in the last four decades. In the form of international partnerships, learning from collaboration partners (Tsang 2002) can contribute to capacity building and industry upgrading (Herrigel et al 2013).…”

Innovation management in collaborative partnerships

“…The following paper by Collinson and Liu () reveals that different types of collaborative partnerships (cooperative vs. competitive) are associated with different innovation performance outcomes (product vs. process innovation). Furthermore, it points to the fact that a sustainable, reciprocal relationship between collaborative partners can generate superior innovation performance.…”

Developing Joint R&D Institutes between Chinese Universities and International Enterprises in China’s Innovation System: A Case at Tsinghua University

“…The joint R&D institutes' mandates, operations and activities reflect the interests of both their affiliated universities and their external international sponsors. Moreover, their organizational formalities are more flexible than departmental structures and can be adjusted to increase the universities' adaptations and responsiveness to the demands of the external community [11,12].Since the mid-1990s, when an increasing number of international enterprises started to move better paid and more brain-intensive labor to China, Chinese research universities have become the primary R&D partners for these enterprises [13][14][15], and joint R&D institutes have become one of their most important forms of partnership [16][17][18][19]. As of 2016, international enterprises had established more than 1800 R&D institutes in China [20].…”

“…Since the mid-1990s, when an increasing number of international enterprises started to move better paid and more brain-intensive labor to China, Chinese research universities have become the primary R&D partners for these enterprises [13][14][15], and joint R&D institutes have become one of their most important forms of partnership [16][17][18][19]. As of 2016, international enterprises had established more than 1800 R&D institutes in China [20].…”