Path Dependence and Resource Availability: Process of Innovation Activities in Chinese Family and Non-Family Firms
Employing a process-based perspective and using a generalized method of moments (GMM) procedure, this paper examines the difference in innovation activities between family firms and non-family firms in China. We find that the level of research and development (R&D) by family firms is dependent on prior R&D spending and more so relative to non-family firms. Next, we find that R&D investment by family firms is more likely to be motivated by the availability of both internal and external cash flows relative to non-family firms. Further analysis suggests that these findings are unlikely to be driven by firm maturity.
Eng, L., Fang, C., Tian, X., & Yu, T. R. (2020). Path Dependence and Resource Availability: Process of Innovation Activities in Chinese Family and Non-Family Firms. Emerging Markets Review Elsevier.
The definitive version is available at https://doi.org/10.1016/j.ememar.2020.100779
Business and Information Technology
Keywords and Phrases
Cash Flows; China; Family Firms; Financing; Innovation; R&; D Spending
International Standard Serial Number (ISSN)
Article - Journal
© 2020 Elsevier, All rights reserved.
18 Nov 2020