Expected underperformance and Chinese firms' overseas R&D: Do executive capabilities matter?

Purpose On the basis of threat rigidity theory, we aim to explore how and when expected underperformance affects firms' overseas R&D. Design/methodology/approach Using empirical data on Chinese high-tech listed firms from 2009 to 2023, we conduct empirical tests to determine the credibility of our proposed hypothesis. Findings We find that expected underperformance is negatively associated with firms' overseas R&D. We also suggest that executives with strong information-processing and R&D management capabilities weaken the negative association between expected underperformance and firms' overseas R&D. Originality/value This study provides new insights into the overseas R&D literature and underperformance literature and provides important insights for firms to better integrate global innovation resources to improve market competitiveness in the context of economic globalization.