Internationalization Of Emerging Market Enterprises And Innovation Ability Of The Parent Company

Innovation ability has long been regarded as an important driver of economic growth and the main source of enterprise competitive advantage.Emerging market companies generally lag behind the competitors of developed markets in terms of innovation development,which compel them go out to seek the status transformation in the world industrial chain and the ascension of independent innovation ability.However,the existing research about the relation between enterprise internationalization and innovation ability has not achieved consistent result,the explanatory power of existant theory about enterprises internationalization and innovation ability is limited,urge the researchers use a new perspective to explore the mechanism and results of emerging markets corporate internationalization to enterprise innovation ability.Emerging market companies seek promotion of innovation ability through the internationalization,which will be affected by the cross-distance.The impact manifests as a paradox,on one hand transnational distance increases the cost of enterprise internationalization,on the other hand,it creates the potential revenue opportunities for the enterprises.But exsitant research is not clear about which distance plays a role and how to play a role.Hence,It is necessary to go further to explore the effects of cross-border distance to enterprise internationalization process and performance.Based on the home and abroad related study,through the standard and rigorous research designing,mutual support of theoretical research and empirical research,with the knowledge view of enterprise and international ambidexterity perspective,it systematically explores the impact of different dimention of emerging markets enterprises’ internationalization to the parent company’s innovation ability.Meantime,with the CAGE framework of distance it examines the moderating effect of cultural distance,regulative distance,geographic distance and economic distance on the relation of enterprises’ internationalization and innovation ability.With the panel data of Chinese high-tech listed enterprises from 2010 to 2013,through the empirical analysis,the article comes the conclutions:(1)The internationalization of Emerging market corporates has promoting effect on enterprise innovation ability,manifests as follows:the international breadth has promoting effect on enterprise innovation ability,the international depth has promoting effect on enterprise innovation ability,the interaction of international breadth and international depth has promoting effect on enterprise innovation ability;(2)Cultural distance positively moderates the relation of international breadth and enterprise innovation ability,positively moderates the relation of international depth and enterprise innovation ability;(3)Administrative distance negatively moderates the relation of international breadth and enterprise innovation ability,positively moderates the relation of international depth and enterprise innovation ability;(4)Geographic distance’s moderating effect of on the relation of international breadth and enterprise innovation ability is not significant,but positively moderates the relation of international depth and enterprise innovation ability.(5)Economic distance negatively moderates the relation of international breadth and enterprise innovation ability,positively moderates the relation of international depth and enterprise innovation ability.This research breaks the one-dimensional definition of enterprise internationalization,examines the effect of international breadth international depth and the interaction of the two to the innovation ability of parent company.lt enriches and expands the research domain of enterprise internationalization,and offers a sally port for the subsequent research;Based on the knowledge view of enterprise and international ambidexterity perspective,it explores the mechanism of emerging markets enterprises’ internationalization to the parent company’s innovation ability by the perspective of knowledge-seeking and knowledge utilization,which deepens the mechanism study of the enterprise internationalization to the innovation ability.With the CAGE framework of cross-distance and from a more comprehensive view,it examines the moderating effect of cultural distance,administrativetive distance,geographic distance and economic distance on the relation of enterprises’internationalization and innovation ability,which offers important boundary conditions for the relation of emerging markets enterprises’ internationalization and the parent company’s innovation ability.Matching the positive effect and negative effect of cross-distance with the double dimension of enterprise internationalization,which enriches the effect of cross-distance to enterprises’ internationalization,and deepens the research of emerging markets enterprises’internationalization.The research conclusions have important theoretical value and practical significance for the international expansion of emerging markets enterprises and the promotion of enterprises’ innovation ability.