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VASP Brown Bag: Chunhui Tang "R&D Internationalization, Product Diversification and International Performance for Emerging Market Enterprises: An Empirical Study on Chinese Enterprises"

Event Type
emerging market enterprise, r&d internationalization, vasp brown bag
Center for East Asian and Pacific Studies
101 International Studies Building (910 S. Fifth Street, Champaign)
Mar 14, 2019   12:00 - 1:00 pm  
Chunhui Tang (Zhejiang University of Finance and Economics, China)
Registration (light lunch provided with registration)
Yuchia Chang

One motivation behind R&D internationalization for emerging market multinationals (EM MNEs) is to expand international markets. We analyze whether the R&D internationalization of EM MNEs contributes to an improvement in international performance measured by foreign sales as a percentage of total sales (FSTS). Using panel data on China's listed companies, we introduce more scientific and normative indicators for measuring R&D internationalization in terms of geographic distribution (breadth) and overseas investment (depth). The empirical results reveal an inverted U-shaped relationship between R&D internationalization and FSTS. When the depth and breadth of R&D internationalization are within a certain range, international performance improves; when R&D internationalization extends beyond a critical point, international performance begins to decline. The findings show that product diversification has a significant moderating effect on the relationship between R&D internationalization breadth and international performance. The inverted U-shaped relationship that is observed becomes less positive and more negative, while the optimal value of R&D internationalization breadth decreases as product diversification increases.


Dr. Chunhui Tang is Associate Professor in the College of Business Administration at Zhejiang University of Finance and Economics, China.

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