The impact of local linkages, international linkages, and absorptive capacity on innovation for foreign firms operating in an emerging economy

Tsai Ju Liao*, Chwo Ming Joseph Yu

*Corresponding author for this work

Research output: Contribution to journalJournal Article peer-review

27 Scopus citations

Abstract

This study analyzes the impact of local linkages, international linkages, and absorptive capacity on firm innovation for firms based in one emerging economy while operating in another emerging economy. Testing research hypotheses derived from the institutional and organizational learning perspectives on a sample of 102 Taiwanese manufacturing firms operating in China, we find that the impact of international linkages is greater than that of local linkages, while both local and international linkages have a positive impact on innovation. Further analysis confirms that absorptive capacity has a stronger moderating effect on the relationship between local linkages and innovation than it does on the relationship between international linkages and innovation.

Original languageEnglish
Pages (from-to)809-827
Number of pages19
JournalJournal of Technology Transfer
Volume38
Issue number6
DOIs
StatePublished - 12 2013
Externally publishedYes

Keywords

  • Absorptive capacity
  • Innovation
  • International linkages
  • Local linkages

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