Growing in the changing global landscape: the intangible resources and performance of high-tech corporates
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Growing in the changing global landscape: the intangible resources and performance of high-tech corporates Rui Wang 1 & Yi-Na Li 1 & Jiuchang Wei 1 Accepted: 10 October 2020/ # Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract The Belt and Road Initiative and Sino-US trade war stand for the trend of globalization and de-globalization. The changing environment motivates innovative high-tech corporates to reassess their intangible resources such as R&D investment and top managers team (TMT) political ties, in order to attain competitive advantages. The study based on a sample of 223 listed Chinese most innovative high-tech corporates (2014– 2018) confirms R&D intensity as burden and political ties as support for corporates’ short-term performance. TMT political ties may attenuate the negative effect of R&D intensity on performance. The negative influences of R&D are aggravated when high environmental dynamism in both the US and B&R countries markets. However, the positive influences of political ties are moderated differently by environmental dynamism in the two markets. For the US market, export environmental dynamism implies de-globalization and diminishes the positive effect of the political relations on performance. By contrast, for the B&R market, it suggests globalization and strengthens the positive effect of political ties. Keywords Globalization . Belt and road . Sino-US . R&D intensity . TMT political ties .
Export environmental dynamism
Electronic supplementary material The online version of this article (https://doi.org/10.1007/s10490-02009744-8) contains supplementary material, which is available to authorized users.
* Jiuchang Wei [email protected] Rui Wang [email protected] Yi-Na Li [email protected]
1
School of Management, University of Science and Technology of China, 96 JinZhai Road, Hefei, Anhui Province 230026, People’s Republic of China
R. Wang et al.
Nowadays, globalization has fundamentally changed the competing environment of corporates (Johansson & Yip, 1994; Wiersema & Bowen, 2008; Witt, 2019). In 2013, the Chinese government announced The Belt and Road Initiative (BRI). It aims to enhance regional connectivity, construct a large unified market, and establish a China-centered trading network by contrast with two US-centric trading arrangements, the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership (The Economist, 2016). Since then, the landscape of Chinese corporates’ international trade changes. China and the US remain as each other’s largest trading partners. However, Sino-US relations deteriorated sharply under Donald Trump’s presidency, who launched a trade war against China and banned US companies from selling equipment to Chinese hightech firms such as Huawei. In the US, domestic job losses are attributed to the trade with China (Hong, 2006), and de-globalization sentiments have mushroomed. The China-US trade tensions exaggerate (Prashantham, Eranova, & Couper, 2018). Chinese high-tech corporates can be subject to
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