TITLE

Knowledge transfer, regulatory support, legitimacy, and financial performance: The case of foreign firms investing in China

AUTHOR(S)
Liao, Tsai-Ju; Yu, Chwo-Ming Joseph
PUB. DATE
January 2012
SOURCE
Journal of World Business;Jan2012, Vol. 47 Issue 1, p114
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: This study aims to link the knowledge-based view and the legitimacy perspective in order to explore the determinants of knowledge transfer and regulatory support. We then examine their consequences within a systematic framework drawing upon the institutional view. Examining a sample of 102 Taiwanese manufacturing firms operating in China, the study finds that both knowledge transfer from local suppliers and regulatory support from local governments help foreign firms to enhance their financial performance. The combination of trusting relationships with local suppliers, a foreign firm''s knowledge stock, and agglomeration encourage local suppliers to transfer knowledge. Additionally, foreign firms’ knowledge stock is significantly related to regulatory support.
ACCESSION #
67250556

 

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