R&D collaboration, social coordination, and standardization: evidence from the Chinese automotive industry

This study examines the role of research and development (R&D) collaboration in the race to set standards in the Chinese automotive industry. We unravel how different properties of R&D collaboration provide firms with social capital that contributes to their involvement in formal standard setting. To test our hypotheses, we use a sample of 508 firms involved in collaborative R&D and standardization from 1987 to 2010. Our results show that firms with stronger and more efficient connections to R&D partners are more likely to set (domestic) standards. Furthermore, firms are more likely to set collaborative standards as a principal editor or non-collaborative standards when they possess stronger connections to their R&D partners. This relationship becomes more pronounced when the proportion of Chinese state-owned enterprises in the firm’s R&D network increases. These findings provide valuable insights for both managers and policymakers, as collaborative partnerships are primary strategic assets that can be leveraged for lobbying and hence, drive competitive advantage in standard competition.