Negative performance feedback and firm cooperation: How multiple upward social comparisons affect firm cooperative R&D

This paper studies the impact of inconsistencies in upward social comparisons on a firm's cooperative R&D. We find that firms with inconsistent industrial and regional upward social comparison results show higher levels of cooperative R&D intensity than those with consistent results. Furthermore, in facing inconsistency, firms with a "high industrial upward social comparison gap-low regional upward social comparison gap" combination show higher levels of cooperative R&D intensity than those with a "low industrial upward social comparison gap-high regional upward social comparison gap" combination. These results indicate that inconsistent social comparison results can promote the openness of a firm's R&D. In cases of inconsistency, better regional comparison results can help a firm narrow its industrial upward social comparison gap in an open and innovative way. The above findings provide insights for policymakers committed to guiding and promoting openness in corporate innovation.