This study applies a resource-based perspective to investigate how competition by informal firms affects innovation in formal firms in China. By analyzing survey data, collected from 1,686 Chinese manufacturing firms, we find that formal firms tend to increase their rate of innovation when faced with informal competition. However, formal firms’ access to increased global supply chain collaboration mitigates the challenges presented to their rate of innovation by the informal firms. We present implications for future research, practice, and policy-making.
CITATION STYLE
Pérez, J. A. H., Yang, X., Bai, O., Flores, A., & Heredia, W. H. (2019). How Does Competition By Informal Firms Affect The Innovation In Formal Firms? International Studies of Management and Organization, 49(2), 173–190. https://doi.org/10.1080/00208825.2019.1608402
Mendeley helps you to discover research relevant for your work.