Drivers of Local Firms’ Focus on Internal R&D in Emerging Economies and Their International Performance

Grounded on the resource-based view of the firm, the study of this thesis investigates the effect of four internal and external factors – engineer intensity, location, affiliation with the government, government funding – on Chinese firms’ decision to either invest in internal R&D activities or external R&D and the effect of this decision on the firms’ international market success. In addition, the moderating role of the presence of foreign firms in China is examined. To understand these relationships, the thesis’ theorization focuses on the issue of how firms can combine optimally the two options – “internal R&D” and “external R&D”. In this regard I juxtapose internal R&D and external R&D and compare their advantages and disadvantages. To test my model, I apply panel data from the Annual Industrial Survey Database provided by the Chinese National Bureau of Statistics. My results show that three of the four investigated factors affect Chinese firms’ resource allocation decisions; and effective resource allocation decisions lead effectively to international market success, strengthened by the presence of foreign firms in China. Moreover the findings bear several theoretical and managerial contributions. First I propose the last dimension of the “VRIO framework” – “organization” – as an endogenous component of the VRIO framework, as my study investigated how firms can effectively combine resources to generate a competitive advantage in terms of international market success. Previous academic literature so far focused on examining whether internal and external R&D are complements or substitutes. My study fills a gap in the literature by investigating the determinants of the efficient combination of the two strategies and the outcome of the combination. One of the managerial implications is that Chinese firms can learn from foreign companies that are present in China.

Rings, Group Rings, and Their Graphs

We associate some graphs to a ring R and we investigate the interplay between the ring-theoretic properties of R and the graph-theoretic properties of the graphs associated to R. Let Z(R) be the set of zero-divisors of R. We define an undirected graph ᴦ(R) with nonzero zero-divisors as vertices and distinct vertices x and y are adjacent if xy=0 or yx=0. We investigate the Isomorphism Problem for zero-divisor graphs of group rings RG. Let Sk denote the sphere with k handles, where k is a non-negative integer, that is, Sk is an oriented surface of genus k. The genus of a graph is the minimal integer n such that the graph can be embedded in Sn. The annihilating-ideal graph of R is defined as the graph AG(R) with the set of ideals with nonzero annihilators as vertex such that two distinct vertices I and J are adjacent if IJ=(0). We characterize Artinian rings whose annihilating-ideal graphs have finite genus. Finally, we extend the definition of the annihilating-ideal graph to non-commutative rings.