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<p>We investigate, in the Chinese context, how top executives respond to innovation quality shortfalls (IQS) by adjusting the scope of overseas R&amp;D. Given that relational culture, as an informal institutional element, profoundly shapes this collective decision-making process, we further incorporate the moderating effects of clan culture and merchant guild culture. Integrating the behavioral theory of the firm (BTOF) with institutional theory, we argue that IQS triggers cross-border innovation search, prompting executives to expand the firm’s overseas R&amp;D scope as a solution. However, in regions where clan culture and merchant guild culture are deeply rooted, the positive effect of IQS on overseas R&amp;D scope is weakened. Using an unbalanced panel dataset of Chinese publicly listed private firms, our empirical analysis provides strong support for these hypotheses. In addition, the heterogeneity analysis reveals that the positive effect of IQS on firms’ overseas R&amp;D scope is more pronounced when the TMT possesses an R&amp;D background or overseas background. By focusing on the relationship between IQS and overseas R&amp;D scope and incorporating the moderating effects of relational culture, this study offers new theoretical insights and empirical evidence to the literature on BTOF and overseas R&amp;D.</p>

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Innovation Quality Shortfalls and Overseas R&D Scope: A Relational Culture Perspective on Collective Decision-Making Dynamics

  • 期刊论文

  • 发表日期：

    2026年5月28日

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  • Weiwei Zheng,
  • Xi Zhong,
  • Linjia Tang

摘要

We investigate, in the Chinese context, how top executives respond to innovation quality shortfalls (IQS) by adjusting the scope of overseas R&D. Given that relational culture, as an informal institutional element, profoundly shapes this collective decision-making process, we further incorporate the moderating effects of clan culture and merchant guild culture. Integrating the behavioral theory of the firm (BTOF) with institutional theory, we argue that IQS triggers cross-border innovation search, prompting executives to expand the firm’s overseas R&D scope as a solution. However, in regions where clan culture and merchant guild culture are deeply rooted, the positive effect of IQS on overseas R&D scope is weakened. Using an unbalanced panel dataset of Chinese publicly listed private firms, our empirical analysis provides strong support for these hypotheses. In addition, the heterogeneity analysis reveals that the positive effect of IQS on firms’ overseas R&D scope is more pronounced when the TMT possesses an R&D background or overseas background. By focusing on the relationship between IQS and overseas R&D scope and incorporating the moderating effects of relational culture, this study offers new theoretical insights and empirical evidence to the literature on BTOF and overseas R&D.