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Most previous research assumes that the outward foreign direct investment (OFDI) decisions of multinational corporations (MNCs) are made independently of the actions or characteristics of their peers. Therefore, the important influence of peer effects on the OFDI strategy is often neglected. The purpose of this paper is to identify two broad categories of peer effects, i.e. learning-based and profit-driven imitations and examine the important influence of peer effects on MNCs’ internationalization strategy.

Using Chinese manufacturing firms as the empirical sample, the authors employ an econometric method (logit regression) to test the relationship between peer effects and an internationalization strategy.

Learning-based and profit-driven imitations are positively associated with a focal MNC’s OFDI decision. Policy uncertainty also positively moderates the relationship between peer effects and the OFDI strategy. Moreover, both peer effects are amplified when a firm is equipped with a dense export network.

The study offers researchers and practitioners a detailed view of interorganizational imitation behavior in terms of an internationalization strategy.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Peer imitation is becoming clear as a way for organizations to successfully embark on OFDI. Whilst it doesn’t come without risks, the benefits to peer imitation can lead to significant gains of competitive advantage.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The stability maintenance system has played an essential role in maintaining social stability although it also has brought about social problems worthy of attention. Admittedly compensation-based stability maintenance policy can address the appeals of citizens whose rights are infringed and the dissolving effect in the provision of compensation can save the cost of stability maintenance but such stability maintenance system lacks equilibrium.

The establishment of a strict assessment system for stability maintenance performance can encourage the stability maintenance authorities to eliminate the “fuse effect” as much as possible and ensure the effective implementation of the stability maintenance system. However, the rigorous stability maintenance performance assessment also provides the possibility for profit-driven petitions.

Due to the continuous accumulation of social dissatisfaction and the lack of stability maintenance equilibrium in the implementation of the compensation-based stability maintenance policy, public governance will fall into a stability maintenance paradox of “greater instability resulting from stability maintenance”.

The provision of sufficient means for the people to protect their interest by implementing measures such as strengthening the rule of law mechanisms is the key to achieve long-term social stability.

Societies highly value economic growth because economic growth results in increase in societal standards of living. This paper addresses the issue of why economies grow and what public policy makers should favor in order to increase economic growth.

This paper reviews and contrasts the two major, rival ways to account for economic growth: the neoclassical model, which maintains that growth results from increases in investment, and the dynamic competition model, which maintains that growth results from the innovations that stem from the process of competition.

The paper finds that the dynamic‐competition model, as represented by resource‐advantage (R‐A) theory, best explains economic growth.

Public policy should focus on promoting R‐A competition in order to foster economic growth.

This issue of which approach best accounts for economic growth is important because the two approaches imply very different decisions in the public policy arena.

The purpose of this paper is to use a dynamic model of optimal patent design and, in the presence of information externalities, to study the evolution of technological progress in the context of a pharmaceutical industry.

A theoretical analysis approach is adopted to drive the paper’s findings.

Pharmaceutical firms with an active drug discovery program behave strategically in their R&D and in the product markets. It is shown that a firm holding an earlier-expiring patent only chooses to proceed with R&D activates when the patent it holds expires if the expected discounted payoff net of R&D costs yielded by this action is positive. The expected discounted payoff net of R&D costs obtained by this firm is then decreasing in R&D costs, increasing in the cumulative quality discovered in the past R&D activates, and decreasing in the number of past R&D activities, etc.

The preceding literature on the topic works with only one brand, the brand with the highest quality. As well, the demand is assumed to be completely inelastic. In the conventional models of patent design, the role of competitive fringe firms is discussed implicitly. The model presented in this research is a rigorous continuous in-time dynamic model. It considers several differentiated products. Furthermore, the demand for a brand is taken to be a function of income, its price, and the prices of other brands. The interaction of the fringe firm with other patent-holding firms is also explicitly considered under this framework.

The scholarly debate regarding the impact of inward foreign direct investment (FDI) on entrepreneurship remains inconclusive. This study aims to tackle this discrepancy by positing that the relationship between inward FDI and entrepreneurship in the host nation is not deterministic but is moderated by intellectual property rights (IPR) infringement hazards. These hazards are postulated to dictate the level of knowledge spillovers from inward FDI, thereby affecting entrepreneurial activities.

This study uses panel data regression analysis using data spanning 30 Chinese provinces from 2010 to 2018. The Hausman test results rejected the null hypothesis, recommending the use of the fixed-effects estimator over the random-effects one for statistical consistency. Therefore, the fixed-effects estimator is used to test the hypotheses.

The study’s analysis reveals that the main effect of inward FDI on entrepreneurship is statistically insignificant. However, once IPR infringement hazards are introduced to the model as a moderator, the main effect turns statistically positive and significant. Notably, the positive main effect diminishes as IPR infringement hazards increase.

Highlighting the role of IPR infringement hazards as a moderator, this research unveils the nuanced relationship between inward FDI and entrepreneurship, thereby addressing the ongoing theoretical debate. This study demonstrates that knowledge spillovers from inward FDI are not automatic but depend on concerns about IPR infringements in the host nation. The resultant spillovers are then translated into entrepreneurial activities.

Threats from the informal sector have become an important concern among formal firms. As a response to these threats, formal firms can adopt product innovation (PI) and marketing innovation (MI) strategies to differentiate themselves. The purpose of this paper is to examine how firm-level technical capability and external institutional quality affect firms’ reactions to the threats from informal firms by adopting innovative activities.

Based on attention-based view (ABV), an empirical study is conducted by using firm-level data from the World Bank Enterprise Survey in 2013.

The findings indicate that when faced with competition from informal firms, formal firms will intensify their innovation activities in both MI and PI, and their technical capability mitigates the competitive threats from informal sectors and thus weakens the impact of informal competitors on the level of product and marketing innovations. Moreover, it is found that the improvement of institutional quality reduces formal firms’ urgency to introduce new products when facing informal competitors. However, this improvement strengthens the impact of informal rivalry on formal firms’ innovation in marketing methods.

Previous studies that investigate the influence of informal threats are focused on technological innovation (e.g., PI and process innovation) strategies, but little knowledge is provided on non-technological innovative strategies, such as marketing strategies (e.g., MI and organizational innovation). This study contributes to the innovation literature by delving into the circumstances under which PI and/or MI is adopted to counter informal rivals. The findings enrich ABV by investigating how inter-firm resource similarity and marketing commonality strengthen top managers' attention to competition from informal firms.

The purpose of this paper is to investigate new entry as a process of organizational change against the background of the digital revolution in the music industry.

The study analyzes questionnaire data gathered from 131 companies active in the Dutch music industry that collectively engaged in 215 new entries in the wake of the introduction of new information and communication technologies.

The most salient finding concerns a strong positive relationship between financial performance and having access to the dominant set of institutional gatekeepers, i.e. radio DJs.

This investigation prompts rethinking the concept of new entry, highlighting the importance of the institutional context in which it takes place. Beyond entry modes and new entry motivations, special consideration is given to specific resources that grant new entrants access to institutional gatekeepers because they are key predictors of performance upon new entry.