How does competition by informal firms affect the innovation in formal firms?

Jorge Antonio Heredia Pérez, Xiaohua Yang, Ou Bai, Alejandro Flores, Walter Heredia Heredia

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


After almost twenty years of internationalization, Chinese firms have shown their growing innovation capability through benefiting from global networks and domestic efforts. However, how Chinese firm innovation is facilitated at the international and domestic levels remains to be understood. This book investigates innovation in China from three aspects. First, starting at the international level, the effects of Chinese-foreign linkages in innovation are examined from the relationship view and the foreign ownership perspective. Second, before moving to the domestic level, the moderating role of global networks (e.g., global supply chain collaboration) is examined to understand the relationship between competition of unregistered firms and innovation of registered firms. Third, at the domestic level, innovation is studied from both upstream and downstream of the value chain: consumers’ decision-making in innovative products and strategic choices, and environment constraints for product innovation. Collectively, this book actively investigates innovation in China at international and domestic levels. It investigates how the global networks contribute to innovation in China and how domestic Chinese firms strengthen their innovation capability. The volume, thus, makes an important attempt to extend existing knowledge on this subject and provides new insights to scholars and practitioners. The chapters in this book were originally published as a special issue of International Studies of Management & Organization.
Original languageEnglish
Title of host publicationGlobal networks and innovation in China
Subtitle of host publicationInternational linkages and indigenous efforts
EditorsWei Tian, Maoliang‏ Bu
PublisherRoutledge, Taylor & Francis Group
Number of pages20
ISBN (Electronic)978-0-367-77139-3
StatePublished - 15 Jun 2021


  • China
  • Informal firms
  • formal firm
  • global supply chain collaboration
  • innovation


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  • How does competition by informal firms affect the innovation in formal firms?

    Heredia Pérez, J. A., Yang, X., Bai, O., Flores, A. & Heredia, W. H., 3 Apr 2019, In: International Studies of Management and Organization. 49, 2, p. 173-190 18 p.

    Research output: Contribution to journalArticle in a journalpeer-review

    24 Scopus citations

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