Entertainment Spending and Capturing Value from Innovation in Chinese Firms

Guoguang Wan, Luqun Xie, Jiatao Li, Dequan Jiang

Research output: Journal PublicationArticlepeer-review

Abstract

This study examines how Chinese firms capture value from their innovations. We propose that relationship-building through business entertainment may be helpful. In particular, wining and dining key stakeholders, including clients, suppliers, distributors, and government officials, can help firms gain access to complementary resources necessary for commercializing their innovations, facilitating capturing value from innovations. However, business entertainment is less effective in regions with relatively developed market-supporting institutions, including factor markets and legal institutions. The analysis results of archival data and data from a World Bank survey of Chinese firms support all the above arguments.

Original languageEnglish
Pages (from-to)623-657
JournalManagement and Organization Review
Volume18
Issue number4
Early online date9 Mar 2022
DOIs
Publication statusPublished - Aug 2022
Externally publishedYes

Keywords

  • China
  • entertainment spending
  • factor markets
  • innovation
  • legal institutions

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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