Publication Type

Journal Article

Version

acceptedVersion

Publication Date

9-2023

Abstract

Integrating the resource-based view (RBV) and attention-based view (ABV), this study explores the impact of firm-specific knowledge (FSK) on a firm's exploratory innovation and the role of government support in this process. We argue that firms with a high degree of specificity in their knowledge assets tend to have a more localized attention focus, leading to those firms with less exposure to distant and diverse information and knowledge. Consequently, such firms are likely to have reduced exploratory innovative outputs. However, government resource support could expand a firm's attention focus beyond local searches, mitigating its negative effects. Based on a unique combined two-wave survey and archival data from over 500 firms in China, we find that the level of FSK is negatively related to a firm's exploratory innovation output. We provide evidence that localized attention focus partially mediates the negative effect of FSK on firms' exploratory innovation. We further reveal that state ownership and state financial support for firm innovation weaken the negative main effect. This study makes important contributions to the literatures on the RBV, FSK, and firm innovation.

Keywords

firm innovation, firm-specific knowledge, government financial support for firm innovation, localized attention, state ownership, China

Discipline

Asian Studies | Strategic Management Policy | Technology and Innovation

Research Areas

Strategy and Organisation

Publication

Management and Organization Review

First Page

1

Last Page

23

ISSN

1740-8776

Identifier

10.1017/mor.2023.11

Publisher

Cambridge University Press

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1017/mor.2023.11

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