Collaborative innovation within Chinese MNCs’ international networks: the role of cultural and institutional distances

Introduction Emerging market multinational companies (EMNCs) have achieved impressive competitive positions in the global economy in a relatively short time. A key to explaining their rapid surge can be found in their strategies to fill the technological gap that has traditionally characterized firms from emerging economies (Kumar and Russell 2002; Awate et al. 2012). In fact, innovative and technical competencies are critical for EMNCs, as long as they aim at creating a sustainable competitive advantage to effectively compete with MNCs from advanced economies in the global marketplace and to participate in the high value-added stages of the global value chain (Mudambi 2008).