Technological Assets and Chinese High-tech Firms’ OFDI in Developed Economies A Techno-nationalism Perspective

Abstract

This study examines the association between Chinese high-tech firms’ technological assets and their OFDI in developed economies (OFDI-in-DE) from a techno-nationalism perspective. China takes an ‘old’ techno-nationalism perspective, in which it values cross-border technological connections. Hence, we predict that Chinese high-tech firms’ technological assets boost their OFDI-in-DE because engaging in this form of OFDI strengthens its technological connections with developed economies. However, because developed economies have turned to a ‘new’ techno-nationalism in recent years, they are reluctant to engage in technological connections with countries such as China, which they perceive as potentially damaging to their competitiveness and national security. We use the gap between the GDP of China and the US to reflect the relative competitiveness of China. We find that when the gap narrows, the positive effect of Chinese high-tech firms’ OFDI weakens. State ownership and government innovation subsidies also diminish the positive effect of Chinese high-tech firms’ technological assets on OFDI-in-DE, because the two factors can contribute to institutional incompatibility between these firms and developed economies. Empirical results from data collected from 1,908 Chinese listed high-tech firms largely support our prediction.

Biography

Associate Professor Zhan Wu earned his PhD from Nanyang Technological University in Singapore. His research interests lie at the intersection of international business, strategic management, and innovation in the context of emerging markets and transition economies. In particular, he is interested in the strategy of firms in and from emerging economies, OFDI and IFDI, competitive dynamics, green innovation and energy economics, entrepreneurship, and dynamic capabilities. So far, he has published over 30 papers in ABDC A* and A journals including Journal of Management Studies, Journal of World Business, International Business Review, Energy Economics, Journal of Business Research, Journal of International Management, Management International Review, Asia Pacific Journal of Management, Technovation, Small Business Economics, Technological Forecasting and Social Change, Journal of Services Marketing, etc.

Currently, he is associate editor of Journal of Business Research and senior editor of Asia Pacific Journal of Management. He is also a guest editor of special issues of Journal of International Management and International Business Review.