The link between firm internationalisation and innovation persistence is underexplored. Hence, we sought to determine whether and how firm internationalisation improves innovation persistence, and whether executives’ overseas backgrounds moderate the relationship between the two based on the high-order ladder theory.
We built a panel dataset based on the data of 1,884 Chinese A-share listed firms’ patents as well as firm internationalisation spanning 2010 to 2022. We employed a fixed-effects model to validate the conceptual framework and test the hypotheses.
Firm internationalisation plays a significant role in fostering innovation persistence. This suggests that executives’ overseas background enhances the contribution of firm internationalisation to innovation persistence. In addition, firm internationalisation can contribute to innovation persistence by alleviating financing constraints, increasing redundant resources, and improving absorptive capacity. The positive effect of firm internationalisation on innovation persistence is more pronounced in manufacturing firms and companies with higher internal control.
This study enriches research on the economic effects of firm internationalisation and innovation persistence, thereby broadening the scope of research on firm internationalsation theory. It helps countries and enterprises formulate and implement relevant public policies, thereby optimizing the business environment.
This study advances our understanding of the antecedents of innovation persistence through the lens of firm internationalisation and uncovers the boundary conditions under which firm internationalisation influences innovation persistence, thereby enriching the theoretical framework of innovation persistence.
