Skip to main content

Research Repository

Advanced Search

The dark side of foreign firm presence: How does the knowledge spillover from foreign direct investment influence the new venture performance

Wang, Huan; Zheng, Leven J.; Zhang, Justin Zuopeng; Behl, Abhishek; Arya, Varsha; Rafsanjani, Marjan Kuchaki

Authors

Huan Wang

Leven J. Zheng

Justin Zuopeng Zhang

Varsha Arya

Marjan Kuchaki Rafsanjani



Abstract

This study presented a comprehensive framework to explain how the knowledge spillover from foreign direct investment (FDI) influences domestic new venture performance. Referring to external (formal and informal institutional distances) and internal (foreign experience and learning orientation) factors, this study examined the external and internal factors as moderators in this relationship. Data were collected from 103 Chinese new ventures and China's inward FDI for 2017. The findings revealed that the negative competitive effect caused by foreign firms outweighs the FDI knowledge spillover effect. The results also indicated that external factors significantly influence the impact of foreign firms’ presence on the new venture performance, whereas the influence of internal factors was limited. The study highlighted the importance of incorporating the heterogeneity of domestic firms into FDI knowledge spillover research.

Citation

Wang, H., Zheng, L. J., Zhang, J. Z., Behl, A., Arya, V., & Rafsanjani, M. K. (2023). The dark side of foreign firm presence: How does the knowledge spillover from foreign direct investment influence the new venture performance. Journal of Innovation & Knowledge, 8(3), Article 100399. https://doi.org/10.1016/j.jik.2023.100399

Journal Article Type Article
Acceptance Date Apr 28, 2023
Online Publication Date Jun 8, 2023
Publication Date 2023-07
Deposit Date Jul 11, 2024
Journal Journal of Innovation & Knowledge
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 8
Issue 3
Article Number 100399
DOI https://doi.org/10.1016/j.jik.2023.100399
Public URL https://keele-repository.worktribe.com/output/855941