Table 1

Operationalization of variables

VariablesAbbreviationMeasurement
Entrepreneurial orientation–The sum of the standardized scores for innovativeness, proactiveness, and risk-taking
Reverse innovations–The measurement of reverse innovations is done through patent information (i.e. number of patents)
International performance–Overseas revenue intensity = overseas sales revenue/total assets at year-end
Firm sizeFSDefined as the natural log of total assets
Firm ageAgeNumber of years in industry
Board sizeBSThe number of directors on the board
Independent directorIDThe firms will take at least 2 directors as independent directors
Tobin’s QTQTobin’s Q is the percentage among a physical asset’s market value and its additional value
Book to market ratioBTMABook to market ratio of shareholders equity
Asset growthAGAsset Growth of the company is measured as the change in total assets
Return on assetsROATotal profit is a percentage of Total Assets
Return on equityROEThe ratio of total profit and percentage of equity
Board meetingBMThe number of meetings in one-year time
CEO dualityDUALDummy variable that equals to 1 if the CEO is working as an executive and 0 otherwise
Financial leverageLEVThe ratio of total debt to the total asset
Year and industryYITo control the effect of year and industry, we included year and Industry dummies in all regressions

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