International product innovation marketing strategy in China: an analysis of EU subsidiary’s firm capabilities and host institutions

Cai, Huifen (Helen) and Wright, Len Tiu (2014) International product innovation marketing strategy in China: an analysis of EU subsidiary’s firm capabilities and host institutions. In: 2014 Global Marketing Conference at Singapore, 15-18 Jul 2014, Marina Bay Sand, Singapore.

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Abstract

This paper analyses the importance of innovation for 680 EU multinationals subsidiaries involved in international marketing in China, the period of 1998-2009, using unbalanced panel data analysis. To date, the literature on EU subsidiaries has failed to consider product innovation in the strategy interplay in approaching new markets overseas. Building on the resource-based view of the firm, linked with host economic and political institutions, the authors empirically examine the inferential marketing strategy in an EU-China context, by applying econometric techniques to investigate innovation capabilities and to test the presence of agglomeration effect of past innovation activities. We find that EU innovation in China is influenced by both host country institutions and firm capabilities, rendering support to the theory. Our analysis indicates EU subsidiaries’ innovation is positively related to firm advertisement, labour training and host market size. R&D expenditure has a negative bearing on innovation. However, openness has a negative and significant effect on product innovation in China. The study findings have important implications for research on international marketing, new venture decision making, and overseas innovation expansion strategies.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Conference Theme: Bridging Asia and the World - Globalization of Marketing & Management Theory and Practice
Research Areas: A. > Business School > International Management and Innovation
Item ID: 19738
Useful Links:
Depositing User: Helen Cai
Date Deposited: 04 May 2016 10:32
Last Modified: 19 Aug 2019 19:26
URI: https://eprints.mdx.ac.uk/id/eprint/19738

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