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| International Diversification Effects on Innovation Performance in Chinese MNEs |
| Chen Yantai1,3,Li Jiajia2,3,Fan Yancheng2,3 |
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Abstract As a growth strategy,international diversification has a significant potential impact on firm performance.However,existing research lacks attention to the mechanism between internationalization and innovation.This paper examines how international diversification influences innovation performance of MNEs,using the date of Chinese listed firms.Our results shows that international diversification has a positive effect on the innovation performance of the MNEs,and the effect will be more pronounced when the host country institutional development is strong enough.The moderating effect of state ownership is not significant.This paper enrich the finding on internationalization of emerging economies and provides new evidence the international diversification plays an important role on MNEs innovation performance.
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