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PurposeIn transitional economies, government support (GS) is considered to influence the development of the economy and industries and, consequentially, firms' intellectual capital (IC). However, empirical research has yet to explore the micro-mechanisms through which GS operates. Hence, the purpose of this study is to conduct an empirical inquiry into the specific role of GS on IC, considering the mediating effect of firm operational performance (OP).Design/methodology/approachCombining the institution-based theory, the resource orchestration paradigm and a dynamic perspective on IC, a new framework is constructed to evaluate the direct and indirect relationships existing among GS policies, firms' operational performance and IC. These processes and their outcomes are evaluated using mediating models with three steps and a panel regression based on panel data from 3,211 high-tech companies operating in China from 2008 to 2015.FindingsEmpirical findings confirm the existence of a significant direct relation between GS and IC and also suggest a mediating effect through operational performance.Originality/value(1) GS can be considered an institutional signal that boosts the attractiveness of a firm, thus enabling it to hire talent (human capital), build a wide network of relationships in the ecosystem (structural capital) and enhance its current relationships with financial service institutions and other stakeholders (relational capital). (2) This study, which considers GS an external resource, is one of the first attempts to explore how external resources influence firms' IC development through institutional pressures and mechanisms. The study confirms that multiple strategies exist through which government authorities and policymakers can influence firms' IC and in particular a combination of institutional factors and firm's resources and capabilities.

Based on case studies of leading Chinese MNEs' international operations in developed countries, this study develops a reverse knowledge acquisition model of emerging market MNEs through subsidiary-led reverse learning, knowledge sharing and integration processes. It unpacks MNEs' external learning process and contributes to the literature by exploring three mechanisms of learning, sharing and integration. It finds three reverse learning channels, a multi-level hub-spoke type of knowledge acquiring mechanism, and a two-tier three-step integration mechanism. The learning mechanism confirms knowledge acquisition driven by reverse learning behaviours; the sharing mechanism enriches the community perspective of capability building and sharing; the integration mechanism provides an effective way of knowledge integration within the MNEs. Refereed/Peer-reviewed

Using a sample of 1397 manufacturing firms in China, this study explores how information and communication technology (ICT) stimulates innovation performance through interaction with investment in internal and external knowledge. The results of this study reveal that the adoption of ICT not only contributes to innovation by directly enhancing its output, but also affects the creation of knowledge along two different paths in Chinese manufacturing firms. Specifically, ICT mediates research and development (R&D) to foster innovative sales and it is an effective moderator in leveraging externally acquired knowledge.