Innovation strategy and performance during economic transition: evidences in Beijing, China
Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 11
Guan J.C., Yam R.C.M., Tang E.P.Y., Lau A.K.W. Research Policy (Netherlands), June 2009, Vol. 38 No. 5, Start page: 802, No. of pages: 11
Purpose – To study and evaluate the relevance of innovation strategy to various categories of Chinese companies and the relationship between innovation strategy and the innovation performance of Chinese companies in a particular region. Design/methodology/approach – A review of the literature of technological innovation, innovation strategy, and organizational performance is presented. Reports the results of a study, undertaken in 1996 against the background of China’s economic and organizational transition and geared to preparing the country’s innovation system for the late 1990s and 2000s,which involved the analysis of questionnaire survey data relating to 1,244 companies in Beijing to investigate three major factors relating to company innovation activities (objectives of innovation, innovation strategies,innovation performance). Findings – The results indicated that: innovation activities were still confined to the domestic sphere and were mainly directed to quality improvements and cost reductions for existing products; the existence of a research and development (R&D) department was essential to the facilitation of innovation activities as the innovation performance of companies with R&D departments was better than that of companies without R&D departments; there is a diverse range of strategic profiles in relation to innovation; high-tech companies performed much better than general companies due to support from the Chinese government; smaller companies performed better than bigger companies because the former were more flexible and the latter were less dynamic; and companies oriented to a high level of innovation did not necessarily perform better than others. Research limitations/implications– The research was limited by the failure to identify a set of predictors to explain innovation performance. Originality/value – Contributes usefully to the growing research literature of the relationship between innovation strategy and innovation performance and productivity. Article type:Research paper ISSN: 0048-7333 Reference: 38AP965
Keywords: Business performance, China, Financial performance, Government policy, Innovation, Performance measurement (quality)
