Latecomers' R&D Isomorphism And Performance:in The Context Of Exploratory Innovation

The appropriate method for latecomer firms to conduct research and development remains a mystery for both practitioners and scholars.Along with the vigorous implementation of the innovation-driven development strategy,the central government has established a series of innovation policies to foster innovation in Chinese market.Latecomer firms' innovation have stepped into an active period,who are actively involved in exploratory innovation for the aim of transformation and upgrading.On the one hand,exploratory innovation is considered as being able to bring firms with new knowledge and new ideas,assist firms to seize the opportunity window for technological paradigm shift.On the other hand,R&D activities in latecomer firms are based on a weak foundation and insufficient resource accumulation.Bearing the deficiency in capital investment and knowledge base,most latecomers could hardly resist the risks in exploratory innovation.Thus,how could latecomer firms develop its R&D activities as a respond to institutional environment,to alleviate the risks in exploratory innovation,so as to elevate its performance and growth?From the perspective of institutional theory,firms' activities are influenced and shaped by institutional pressures from the institutional environment.Institutional isomorphism reflects as conforming or converging to institutional pressures,which could help firms to gain accreditation,establish legitimacy,leverage scarce resource and knowledge from stakeholders,and ultimately contribute to firms' survive and development.However,extant literature provides mix findings regarding on the relationship between institutional isomorphism and firms' performance.We still do not fully understand whether and how could isomorphism translate to concrete performance benefits.Besides,previous studies have also proved that isomorphism influences performance significantly in uncertain context,while exploratory innovation is considered as a typical uncertain context.Based on above discussion,this dissertation focuses on the key research question:In exploratory innovation,how could isomorphism in R&D activities influences firm performance?To answer the key research question,this dissertation contains three studies to investigate R&D isomorphism progressively.Firstly,this dissertation traces the antecedents and forming mechanisms of R&D isomorphism.Based on exploratory multiple case studies on four Zhejiang pharmaceutical companies,Study 1 investigate the forming mechanism of R&D isomorphism and examine the relationship between R&D isomorphism and performance preliminarily.This study finds that R&D isomorphism is driven by both institutional pressures and competition pressures.Firms would choose to conform to institutional pressures or converge to the R&D arrangements of leading firms,which lead to three dimensions of R&D isomorphism,namely,isomorphism in R&D intensity,isomorphism in R&D regulation,and isomorphism in R&D personnel structure.Based on its antecedents,this study elucidates main differences between R&D isomorphism and generic isomorphic behaviours.In addition,this study examines the relationship preliminarily based on comparative case study.On the basis of Study 1,this dissertation takes a further step in solidify the performance consequences of R&D isomorphism.Study 2 provides an empirical study investigating the relationship between R&D isomorphism and performance.In this study,R&D isomorphism is seen as an endogenous strategy out of its essential difference with generic isomorphic behaviours.Based on the unbalanced panel data set of Zhejiang listed manufacturing firms between 2007 to 2015,this study finds that when the level of exploratory innovation is high,converging to leading firms in R&D intensity and R&D personnel positively relate to firms' performance;while conforming to R&D regulations negatively affect firms,performance.Finally,this dissertation explores the suitable situation for R&D isomorphism strategy.Based on Study 2,Study 3 investigates the relationship between R&D isomorphism and performance in exploratory innovation,under the context of different internal governance structure and external institutional environment.This study finds that when the level of exploratory innovation is high,the level of state-ownership,regional innovation and industrial innovation influences the efficiency of R&D isomorphism strategy on performance.Through progressive research design,this dissertation discovers the antecedents,consequences and contexts of R&D isomorphic strategies.Based on above discussion,this dissertation seeks following contributions and attempts to enrich institutional isomorphism literature,as well as in latecomers,innovation research.Firstly,this dissertation attempts to explain the tension between being similar out of isomorphism and being different out of strategy needs.By elucidating the forming mechanism of R&D isomorphism,this dissertation argues that institutional and competitive logic are loosely coupled,lead to different facets of R&D isomorphism and simultaneously build legitimacy for the focal firm.This finding confirms the performance expectation of R&D isomorphism,eliminate the questioning on the performance benefits of isomorphism,as well as corresponds to the trend of bridging institutional theory and resource based view.Furthermore,this dissertation models R&D isomorphism as an endogenous selected strategy,and focuses on the performance consequences of R&D isomorphism.In this way,this dissertation provides a new angle to study institutional isomorphism,which correspond to the focus shift to latecomers' initiatives as well as the "enabling effect" of isomorphism.Thus,these findings on performance consequence also explicate to some extent the mix findings of extant isomorphism literature,which complement and extend the findings on the consequences and contexts of isomorphism.Last but not least,this dissertation makes an in-depth exploration on the transitional economy context.In Chinese market,latecomers,R&D and innovation is embedded in a complex context featured of institutional environment,technological regime,multiple market space,and international network.From the lens of institutional theory,this dissertation elucidates the influence of Chinese institutional environment,which is of great significance in guiding latecomers' R&D activities,inspiring latecomers to explore possible strategies to achieve exploratory.innovation and realize the ambitious goal of transformation and upgrading.