Innovation and Financial Performance in Emerging Countries: An Empirical Analysis of Korean and Chinese Firms

Choi, Suk Bong and Lee, Soo Hee (2008) Innovation and Financial Performance in Emerging Countries: An Empirical Analysis of Korean and Chinese Firms. In: Academy of Management 2008 Annual Meeting: The Questions We Ask, AOM 2008, 8th to 13th August 2008, Anaheim, CA. (The full text of this publication is not available from this repository)

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Abstract

This paper suggests a new way of operationalising innovation capabilities of firms by incorporating intensity, scope and spillover effects of innovation. Based on panel data estimation of Korean and Chinese listed firms in high technology industries over four years, this study shows that innovation output (i.e. patent intensity) rather than innovation input (i.e. R&D intensity) contributed to firm financial performance. It also indicates that the innovation strategy developing the depth of innovation capability in a few specific technological fields may be the source of better performance in Korea, while diversified innovation capabilities over different technology fields might be having positive effects on firm performance in China. The empirical result on the moderating role of the scope of innovation capabilities shows that the effects of R&D investment on firm performance depend on appropriate innovation strategy determining the scope of innovation. This outcome suggests that, when R&D investment does not match the depth and diversity of innovation capabilities of firms and related strategies, this hampers the financial performance of firms. Finally, my empirical evidence documents that technologically related innovation efforts of other firms is a significant predictor of financial performance with the firms¡� own innovation efforts (e.g. in-house R&D).

Item Type: Conference or workshop item (Paper)
Additional information: Unmapped bibliographic data: PY - 2008/// [EPrints field already has value set] AD - School of Business Administration, Kyungpook National University, 1370 Sankyug-Dong, Book-Gu, Deagu 702-701, South Korea [Field not mapped to EPrints] AD - Birkbeck College, University of London, United Kingdom [Field not mapped to EPrints] JA - Acad. Manage. Annu. Meet.: Questions We Ask, AOM [Field not mapped to EPrints]
Uncontrolled keywords: Chinese firms, Empirical analysis, Empirical evidence, Financial performance, Firm Performance, High technology industries, Innovation capability, Innovation strategy, Panel data estimation, Patent intensity, Spillover effects, Technology fields, Finance, Industry, Patents and inventions, Innovation
Subjects: H Social Sciences
H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School
Faculties > Social Sciences > Kent Business School > Industrial Relations/HRM
Depositing User: Cathy Norman
Date Deposited: 24 Sep 2012 09:52
Last Modified: 28 May 2014 13:55
Resource URI: http://kar.kent.ac.uk/id/eprint/30867 (The current URI for this page, for reference purposes)
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