How Does Competition By Informal Firms Affect The Innovation In Formal Firms?

Description:

This study, conducted by Jorge A. Heredia Pérez, Xiaohua Yang, Ou Bai, and Walter Heredia and published in International Studies of Management & Organization, 2019, applies a resource-based perspective to explore how competition among informal companies affects innovation among formal companies in China. Through analysis of survey data collected from 1,686 Chinese manufacturing companies, the authors find that formal companies tend to increase their rate of innovation when faced with informal competition. Moreover, formal companies’ access to greater collaboration in the supply chain mitigates the challenge that informal companies pose to their innovation. The study presents the implications for future research, in practice, and for policy design.

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How does Competition by Informal Firms Affect the Innovation in Formal Firms?

How does Competition by Informal Firms Affect the Innovation in Formal Firms?

Heredia Pérez, J. A., Yang, X., Bai, O., Flores, A., and Heredia, W. H. (2019). How Does Competition by Informal Firms Affect The Innovation In Formal Firms? International Studies of Management & Organization, 49(2), 173–190.

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