This study examines the extent to which foreign competition affects the innovation performance of domestic firms through imitation, given firms’ absorptive capacity. In analysing longitudinal firm-level data from the UK, we find a mediating effect of imitation on the relationship between foreign competition and local firms’ innovation performance, and an inverted U-shaped relationship between imitation and the innovation performance of local firms. Our findings further reveal that absorptive capacity moderates the mediating effect of imitation, diminishing innovation gains at moderate levels of imitation and mitigating the diminishing innovation performance at high levels of imitation.
|Number of pages||19|
|Journal||British Journal of Management|
|Early online date||27 Jul 2017|
|Publication status||Published - Jul 2018|
- Norwich Business School - Professor of International Business and Innovation
- Strategy and Entrepreneurship - Member
Person: Research Group Member, Academic, Teaching & Research