Two-Way Streets: The Role of Institutions and Technology Policy in Firms’ Corporate Entrepreneurship and Political Strategies

International Business and Entrepreneurship Implications of Brexit

“…A large body of research suggests that national and supra-national institutions affect how companies in a country operate (Bloom and Van Reenen, 2010;Holmes et al, 2016;Zahra, 2014). These institutions provide the basic framework within which managers make decisions about their companies' missions, business models and resource allocations.…”

“…Evidence shows that institutions influence the time horizons over which managers plan capital expenditures, R&D spending and other investments in building those capabilities essential for innovation and international expansion. They also influence the technological strategies companies use to build their market positions in different markets (Holmes et al, 2016). These strategies and related investments are essential for creating new business by establishing subsidiaries or acquiring entrepreneurial companies in new markets.…”

Resources, state ownership and innovation capability: Evidence from Chinese automakers

“…Similarly, the significant effect of government support on innovation capability supports the view that the government in China is more than the background for business actors (Lu, Liu, & Wang, ), which differs from the results in Western contexts. In China, governments at all levels are very powerful, as they directly control strategic resources and allocate resources through relevant policies to guide and shape business activities (Holmes, Zahra, Hoskisson, DeGhetto, & Sutton, ). Government support is an integral part of the innovation process, and an appropriate design of innovation policies could promote innovation capability of Chinese firms (Doh & Kim, ).…”

Technology Policy, R&D Investment Decisions, and MNC Subsidiary Innovation Performance

“…Technology policy influences the incentives, capabilities, and resources available for firms and other actors to finance or participate in the development, integration and commercialization of knowledge (Holmes et al, 2016). The effects of technology policy, in turn, depend on the strategic response of firms, and firms may respond differently to technology policy.…”

“…By examining the reactions of both domestic firms and MNC subsidiaries to the availability of R&D subsidies, our research provides a more nuanced understanding of when and under what circumstances subsidies influence R&D inputs and outputs. Given that innovation has become increasingly significant in today's economy, focusing on technology policy provides a more comprehensive picture on the role of institutions shaping the incentives and abilities required to implement particular innovation strategies (Holmes et al, 2016).…”