Abstract/Summary

This paper examines the relationship between different types of international partnerships and innovation performance. By drawing on a conceptual framework which outlines how new bundles of transferrable and non-transferrable ownership advantages are created from such partnerships (Collinson and Narula, 2014), we analyze empirical evidence from a large-scale survey of 320 individual company responses from the China-based operations of foreign multinational firms alongside in-depth case studies. Our study reveals that different types of collaborative partnerships (cooperative vs competitive) are associated with different innovation performance outcomes (product vs process innovation). In addition, we find that a sustainable, reciprocal relationship between collaborative partners can generate superior innovation performance. Contextual factors including the role of government and industry characteristics have an important bearing on innovation performance in collaborative partnerships in China. We conclude with implications for researchers, managers and policymakers.