Learning through exploitative and exploratory overseas R&D: impacts on EMNEs' innovation performance

Abstract

PurposeThis study aims to examine whether exploitative and exploratory overseas R&D have independent and significant effects on emerging economy multinational enterprises' (EMNEs’) innovation performance and whether top management team (TMT) nationality diversity and openness have a moderating effect on these relationships.Design/methodology/approachThis study analyzes data collected from Chinese-listed manufacturing enterprises for 2007 to 2018.FindingsEmpirical results show that both exploitative and exploratory overseas R&D can help improve EMNEs' innovation performance. The authors further find that TMT nationality diversity and TMT openness strengthen the aforementioned relationships.Originality/valueThis study presents the first empirical evidence showing whether and when exploitative and exploratory overseas R&D have independent and heterogeneous effects on EMNEs' innovation performance.