The moderating role of R&amp;D intensity on the association between external embeddedness and subsidiary product innovation: evidence from Vietnam

Vo, Dut Van; Rowley, Chris; Nguyen, Dang Trang

doi:10.1080/13602381.2021.1958474

Cited by 10 publications

(14 citation statements)

References 83 publications

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“…R&D activities also form a foundation for the improvement of production efficiency and business activities in general, increasing market share and ultimately the profitability of the firms. In addition to R&D intensity as an independent variable, the study also points out the positive effects of control variables such as enterprise size and enterprise age along with the negative effect of foreign ownership proportion on the export of Vietnamese enterprises (Saemi & Oskooee, 2019;Nguyen & Le, 2019;Vo et al 2021a). These findings have advanced the understanding of export activities of firms operating in transition economies, given that international business literature has so far been relatively silent on such a topic.…”

Section: Discussionmentioning

confidence: 96%

“…From the practical perspective, the research has pointed out that increasing investment in R&D will help firms to promote international trade. Innovation activities motivate firms to come up with cutting-edge technologies and advanced production processes that are cost-effective and time-saving (Pierre, 2020;Vo et al 2021a). Additionally, product and service innovation enables companies to differentiate themselves from their competitors and successfully meet customers' diverse needs by offering high-quality yet reasonably priced products.…”

Section: Discussionmentioning

confidence: 99%

“…When the firm size is large enough, firms can gain quick access to scientific and technological advances in the world. Therefore, previous studies have concluded that enterprise size positively affects the export intensity of the enterprise (Filatotchev et al, 2008;Goldar, 2013;Vo, 2015a;Vo et al 2021a).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Firm age: Firm age demonstrates the ability of an enterprise to be formed through experience gained over time (Vo et al 2021a). Factors related to age are deemed to have significant impacts on firms' ability to access foreign markets (Oviatt & McDougall, 1997).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Based on the four-digit ISIC classification, we categorised sectors into two groups including manufacturing and services. One dummy was created to represent the two categories (Vo et al 2021a).…”

Section: Sectormentioning

confidence: 99%

See 4 more Smart Citations

The Role of R&D Intensity on the Export Intensity of Enterprises in Transition Economy: The Case of Vietnam

Van¹,

Van²,

Trang³

2022

AJBA

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Manuscript type: Research paper Research aims: This study estimates the role of research and development (R&D) expense with respect to the export intensity of Vietnamese enterprises. Design/Methodology/Approach: Building upon the resource-based review, this study postulates that the R&D expenses of an enterprise are positively associated with the export intensity of the enterprise. Data extracted from the Vietnam General Statistics Office Survey of 306 exporting Vietnamese firms were used to test the proposed hypothesis. Research Findings: Both Robust Standard Errors and Tobit Regression models reveal that the hypothesis is strongly supported with the control of firm-level and national-level factors. Theoretical contribution/Originality: This study provides a new insight about the role of R&D expense with respect to the export intensity of the enterprise in transition economies. Practitioner/Policy Implications: This study suggests firms to continuously engage in innovation to gain a sustainable competitive advantage when exporting to other countries. Research limitation/ Implication: Further research may consider a bigger sample size and utilise time-series or panel data. Keywords: Export Intensity, R&D Intensity, Transition Economy, Viet Nam JEL Classification: F23, M16

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Section: Discussionmentioning

confidence: 96%

Section: Discussionmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Sectormentioning

confidence: 99%

See 3 more Smart Citations

The Role of R&D Intensity on the Export Intensity of Enterprises in Transition Economy: The Case of Vietnam

Van¹,

Van²,

Trang³

2022

AJBA

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R&D grants and R&D tax credits to foreign-owned subsidiaries: Does supporting multinational enterprises’ R&D pay off in terms of firm performance improvements for the host economy?

Lenihan

Mulligan²,

Doran³

et al. 2023

J Technol Transf

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The subsidiaries of foreign-owned multinational firms make significant contributions to national Research and Development (R&D) in many host countries. Policymakers in host countries often support subsidiaries’ R&D efforts, through R&D grants and R&D tax credits. A key objective of this funding is to leverage R&D-driven firm performance benefits for the host economy. However, the subsidiary's parent firm may decide not to commercially exploit the results from host country-funded R&D projects, in the host country. Therefore, supporting subsidiaries’ R&D presents a unique risk, that significant amounts of scarce public R&D funding may translate into little, or no firm performance payoffs for the host economy. To address this issue, we construct a unique panel dataset, containing 24,404 observations of firms in Ireland over a 10-year period. Using this rich data, we first evaluate the impact of R&D grants and R&D tax credits on subsidiaries’ R&D. We then examine the link between policy-induced R&D from each policy instrument, and subsidiaries’ firm performance in the host country. Our study provides the first evaluation of (1) whether public R&D funding stimulates additional R&D investment in subsidiaries, (2) whether policy-induced R&D drives subsidiaries’ firm performance in the host country, and (3) the differential effects of R&D grants and R&D tax credits. We find that both R&D policy instruments drive subsidiary R&D, and that the policy-induced R&D results in substantial host country improvements in turnover, exports, and value added. Our results suggest several policy implications, particularly for economies pursuing an R&D strategy which targets foreign-owned subsidiaries.

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Product Innovation and Value Network Formation of Internet Firms Based on Grounded Theory: Experience of the Largest Firm in China

Sun

2023

J Knowl Econ

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The moderating role of R&D intensity on the association between external embeddedness and subsidiary product innovation: evidence from Vietnam

Cited by 10 publications

References 83 publications

The Role of R&D Intensity on the Export Intensity of Enterprises in Transition Economy: The Case of Vietnam

The Role of R&D Intensity on the Export Intensity of Enterprises in Transition Economy: The Case of Vietnam

R&D grants and R&D tax credits to foreign-owned subsidiaries: Does supporting multinational enterprises’ R&D pay off in terms of firm performance improvements for the host economy?

Product Innovation and Value Network Formation of Internet Firms Based on Grounded Theory: Experience of the Largest Firm in China

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