While there is a wealth of literature on the benefits of open innovation (OI), little is known about when latecomer firms undertake international open innovation (IOI) given the related benefits and challenges.

This article examines how the characteristics of firms and their surrounding environment affect their engagement with international collaboration. Demand-side factors appear to be more significant drivers of IOI in latecomer firms than the pursuit of technology leadership. Market expansion-oriented innovation strategy, international orientation, previous collaboration experiences, and technology intensity of the industry are found to be associated with a high degree of IOI; firms with stronger R&D capacity tend to be less open to international collaboration.

Findings from the research are helpful for managers interested in using IOI to promote their companies' innovation performance, and to managers of MNEs or policy makers who would like to understand the international innovation strategy of Chinese firms.

Xiaolan Fu, Yawen Li, Jizhen Li and Henry Chesbrough (2021) 'When do latecomer firms undertake international open innovation: Evidence from China', Global Strategy Journal, DOI: 10.1002/gsj.1401