Research On Reverse Innovation Of EMNEs And Its Impact On Foreign Subsidiary Survival Based On Resource Dependence Perspective

As globalization and anti-globalization coexist,the international environment is full of uncertainty.On the one hand,along with the development of global innovation networks,knowledge and information flow across countries,and the links between all parts of the world have become closer,emerging markets have become a major force for global knowledge creation activities.On the other hand,the trend of anti-globalization is intensifying day by day,such as trade war and technological war between China and the US,the reshoring of manufacturing in developed countries,the restructuring of global value chain,and the global decoupling are accelerating.In view of the new international situation,the state proposes to accelerate the construction of a new development pattern with the domestic large cycle as the main body and the domestic and international double cycles promoting each other,give full play to the advantages of the domestic super large-scale market,make good use of the market,the world’s most scarce resource,and improve the ability of independent innovation.From the micro level,the new development pattern essentially emphasizes that Chinese enterprises rely on the domestic market to form endogenous innovation ability to deal with more complex and uncertain dependence.In fact,there are many such successful firms in China,such as high-speed rail industry,Huawei,Haier and Mindray.They go to the high-end market and even the world with their innovation ability born in the domestic market.This model,which is called reverse innovation in academic field,is exactly the innovation strategy required for Chinese enterprises to get rid of the technology dependence of developed countries and catch up with and surpass the latecomers under the current complex dependence.Based on this,this study focuses on "how can emerging multinational corporations achieve innovation catch-up under complex dependence?" From the perspective of resource dependence theory and using the exploratory multi case study method,this paper constructs a two-dimensional asymmetric dependence theoretical framework of "technology-market",focuses on the reverse innovation strategy of emerging multinational corporations,distinguishes competitive reverse innovation from symbiotic reverse innovation,and identifies the internal mechanism of its formation.Further,based on the value possession mechanism,power utilization mechanism and dependence response mechanism of resource dependence theory,this paper constructs a theoretical model of the impact of"technology-market" two-dimensional asymmetric dependence on reverse innovation,and based on the "benefit-cost" analysis framework under the power utilization mechanism,this paper constructs a theoretical model of the impact of reverse innovation on the survival of foreign subsidiaries,which also making an empirical test with the data of Chinese manufacturing listed companies and overseas subsidiaries.Firstly,based on the dual dimensions of technology dependence and market dependence,combined with the bilateral and asymmetric nature of resource dependence,this paper constructs a theoretical analysis framework of "technology-market" two-dimensional asymmetric dependence,and identifies four resource dependence scenarios:"technology power-market dependence","technology dependence-market power","technology power-market power" and "technology dependence-market dependence",It further analyzes the types of innovation strategies of emerging multinational corporations in four situations.It is found that the choice of reverse innovation strategy of emerging multinational corporations depends on the embedded resource dependence situation,and will promote the change of resource dependence situation.There is a synergistic evolution relationship between reverse innovation strategy and resource dependence situation of emerging multinational corporations;Value possession mechanism,power utilization mechanism and dependence response mechanism are the internal mechanisms for the formation of emerging multinational corporations’ reverse innovation strategy.Emerging multinational corporations realize competitive reverse innovation through value monopoly,power consolidation and adaptive logic,and symbiotic reverse innovation through value co creation,power promotion and diversification logic.Secondly,this study explores the impact of "technology-market" two-dimensional asymmetric dependence on competitive reverse innovation and symbiotic reverse innovation of Chinese enterprises.When China’s technology dependence and market dependence on overseas countries are very high,Chinese enterprises will neither adopt competitive reverse innovation nor symbiotic reverse innovation.When overseas countries are highly dependent on China’s technology and market,Chinese enterprises will adopt both competitive reverse innovation and symbiotic reverse innovation.When China is highly dependent on overseas markets and overseas countries are highly dependent on Chinese technology,Chinese enterprises tend to adopt competitive reverse innovation rather than symbiotic reverse innovation.When China’s dependence on overseas countries’ technology is very high and overseas countries’ dependence on the Chinese market is very high,Chinese enterprises will adopt both competitive reverse innovation and symbiotic reverse innovation.Thirdly,this study explores the impact of Chinese enterprise reverse innovation on the survival of foreign subsidiaries,divides reverse innovation into competitive reverse innovation and symbiotic reverse innovation,discusses the differential impact of the two types of reverse innovation on the survival of foreign subsidiaries,and further investigates the regulatory role of subsidiary ownership structure and host country experience.A lower degree of competitive reverse innovation is conducive to the survival of foreign subsidiaries,while a higher degree of competitive reverse innovation is not conducive to the survival of foreign subsidiaries.A lower degree of symbiotic reverse innovation is not conducive to the survival of foreign subsidiaries,while a higher degree of symbiotic reverse innovation is conducive to the survival of foreign subsidiaries.Whether it is competitive reverse innovation or symbiotic reverse innovation,when it is at a low level,the flexible control mode of low equity is more conducive to the survival of foreign subsidiaries,while when it is at a high level,the integrated control mode of high equity is more conducive to the survival of foerign subsidiaries.When the degree of competitive reverse innovation is low,the experience of the host country can realize the efficient combination of technical knowledge and market knowledge,and then improve the benefit effect of technical knowledge,which is conducive to the survival of foreign subsidiaries.When the degree of competitive reverse innovation is high,the experience of the host country is unfavorable to the acquisition of heterogeneous knowledge,and its marginal benefit decreases,which is not conducive to the survival of foreign subsidiaries.The innovations of this study are as follows:first,it constructs an analytical framework of "technology-market" two-dimensional asymmetric dependence,which provides a theoretical tool to accurately describe the complexity of dependence and comprehensively interpret the strategic behavior of multinational corporations.The second is to identify and distinguish between competitive reverse innovation and symbiotic reverse innovation,build a more universal comprehensive theoretical model,and put forward a new innovation strategy for emerging multinational corporations to get rid of technology dependence and catch up later,which helps to refine the research on innovation from emerging markets and further enrich the research on Innovation internationalization and global innovation strategy of multinational corporations.The third is to put the discussion on the survival of overseas subsidiaries of multinational corporations under a new situation,put forward a new perspective on the survival of overseas subsidiaries of emerging multinational corporations,and effectively supplement and expand the mainstream viewpoints and paradigms of multinational corporation research.