11 Purpose This study aims to empirically investigate the effects of institutional support 12 13 on product and process innovation and firm performance and describe how 14 15 dysfunctional competition influences relevant outcomes. 16 17 Design/methodology/approach This study develops a research model based on 18 institution-based view and tests it using structural equation modeling and empirical 19 20 data collected from 300 manufacturers in China. 21 22 Findings The results show that

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... nal support positively affects product and 23 24 process innovation and firm performance. Both product and process innovation 25 26 improve firm performance. The findings reveal that dysfunctional competition 27 28 significantly reduces the positive effects of institutional support on product and 29 30 process innovation but leaves the effects of institutional support and product and 31 32 process innovation on firm performance unaffected. 33 Originality/value This study contributes to innovation literature by providing insights 35 into the impact of China's institutional environment on manufacturing firms' product 36 37 and process innovation decisions. The findings also contribute to institution-based 38 39 view literature by providing empirical evidence on the joint effects of institutional 40 41 support and dysfunctional competition on product and process innovation and firm 42 43 performance. This study can help manufacturers in China take advantage of 44 45 institutional environment and adjust product and process innovation decisions 46 47 accordingly. 48 49 50