Performance Shortfall Scope and Emerging Economy enterprises’ Overseas R&D

ABSTRACT

Based on the Behavioral Theory of the Firm and upper echelon theory, this study examines the impact of performance shortfall scope on emerging economy enterprises’ (EEEs) overseas research and development (R&D). First, this study suggests that the broader the performance shortfall scope is, the less likely EEEs are to implement overseas R&D. Moreover, this study suggests that top management team (TMT) tenure weakens the negative impact of performance shortfall scope on EEEs’ overseas R&D. Meanwhile, CEO duality enhances the above relationship. Based on the empirical data pertaining to Chinese listed manufacturing enterprises from 2003 to 2020, this study confirms the arguments put forward. This study is the first of its kind to examine the relationship between performance shortfall scope and EEEs’ overseas R&D.

KEYWORDS:

• Performance shortfall scope
• overseas R&D
• tenure
• duality
• emerging economy enterprises

JEL:

• F23
• L21
• M16
• O30

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Supplementary Data

Supplemental data for this article can be accessed online at https://doi.org/10.1080/1540496X.2023.2206517.

Notes

1. https://baijiahao.baidu.com/s?id=1644502643805571952&wfr=spider&for=pc.

Additional information

Funding

The authors are grateful to the National Natural Science Foundation Project of China [Grant No. 72202043; 72202072], the Guangdong Basic and Applied Basic Research Foundation [Grant No. 2022A1515010292; 2023A1515010995], the Basic Research Ability Enhancement Project for Young and Middle-aged Teachers of Guangxi [Grant No. 2023KY008], and the Key Research Base of Humanities and Social Sciences in Guangxi Universities and the project of Guangxi Development Strategy Institute [Grant No. 2022GDSIYB02].