R&D Internationalization and Its Impact on Green Innovation: An fsQCA‐Based Comparison of Global R&D Divisions and Subsidiaries

ABSTRACT We examine the role of R&D internationalization in green innovation among Chinese firms based on two organizational modes of Chinese firms in Belt and Road (B&R) countries, which are overseas R&D divisions and overseas R&D subsidiaries. Based on institutional theory and dynamic capability theory, we examine how the external drivers (policy support, regulatory environment, market norms) interact with internal drivers (sensing, integration, reconfiguration, innovation). We find the configurations that would result in green innovation in various organizational structures using fuzzy‐set qualitative comparative analysis (fsQCA). There are four different models of green innovation. Policy sensing‐driven and regulatory integration‐driven green innovation models are mainly observed in overseas R&D divisions, whereas market reconfiguration‐driven and market innovation‐driven green innovation models are mainly observed in overseas R&D subsidiaries. Our findings extend the literature on R&D internationalization and green innovation by showing that the effectiveness of institutional and capability drivers depends on organizational form and by identifying multiple configurational pathways through which international R&D units achieve green innovation.