Skip to main content

Advertisement

Log in

Technological innovation of firms in China: Past, present, and future

  • Reviews
  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

What do we know about technological innovation of firms in China? What are the directions for future research on this topic? This paper summarizes and discusses some of the newest literature on technological innovation of firms in China in the following three ways: (1) the influence of firms’ external factors, (2) the influence of firms’ internal factors, and (3) interfirm cooperation factors. Based on the analysis of these articles, we propose a framework which highlights these influencing factors, decision-making and implementation of technological innovation and innovation performance, in the context of China’s emerging economy. This framework sheds lights on future innovation research.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1

Similar content being viewed by others

References

  • Ahlstrom, D., Chen, S.-j., & Yeh, K. S. 2010. Managing in ethnic Chinese communities: Culture, institutions, and context. Asia Pacific Journal of Management, 27(3): 341–354.

    Article  Google Scholar 

  • Anderson, E., & Oliver, R. 1987. Perspectives on behavior-based versus outcome-based salesforce control systems. Journal of Marketing, 51: 76–88.

    Article  Google Scholar 

  • Atuahene-Gima, K. 1996. Market orientation and innovation. Journal of Business Research, 35: 93–103.

    Article  Google Scholar 

  • Atuahene-Gima, K. 2005. Resolving the capability-rigidity paradox in new product innovation. Journal of Marketing, 69: 61–83.

    Article  Google Scholar 

  • Barringer, B. R., & Bluedorn, A. C. 1999. The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal, 20: 421–445.

    Article  Google Scholar 

  • Bell, M., & Pavitt, K. 1992. National capacities for technological accumulation: Evidence and implications for developing countries. Paper prepared for the Proceedings of the World Bank’s Annual Conference on Development Economics, Washington, DC.

    Google Scholar 

  • Bhagat, R. S., McDevitt, A. S., & McDevitt, I. 2010. On improving the robustness of Asian management theories: Theoretical anchors in the era of globalization. Asia Pacific Journal of Management, 27(2): 179–192.

    Article  Google Scholar 

  • Boeker, W. 1997. Strategic change: The influence of managerial characteristics and organizational growth. Academy of Management Journal, 40: 152–170.

    Article  Google Scholar 

  • Brockhoff, K., & Guan, J. 1996. Innovation via new ventures as a conversion strategy for the Chinese defense industry. R&D Management, 26: 49–56.

    Article  Google Scholar 

  • Burt, R. S. 1992. Structural holes. Cambridge: Harvard University Press.

    Google Scholar 

  • Cardinal, L. B. 2001.Technological innovation in the pharmaceutical industry: The use of organizational control in managing research and development. Organization Science, 12: 19–36.

    Google Scholar 

  • Cardoza, G. 1999. Learning and innovation paths in East Asia. Science and Public Policy, 26: 259–276.

    Article  Google Scholar 

  • Carney, M. 2003. Strategic innovation and the administrative heritage of East Asian family business groups. Asia Pacific Journal of Management, 20(1): 5–26.

    Article  Google Scholar 

  • Chen, G. Q., Liu, C. H., & Tjosvold, D. 2005. Conflict management for effective top management teams and innovation in China. Journal of Management Studies, 42: 277–300.

    Article  Google Scholar 

  • Chen, G. Q., Tjosvold, D., & Liu, C. H. 2006. Cooperative goals, leader people and productivity values: Their contribution to top management teams in China. Journal of Management Studies, 43: 1177–1200.

    Article  Google Scholar 

  • Chiesa, V., Coughlan, P., & Voss, C. A. 1996. Development of a technical innovation audit. Journal of Product Innovation Management, 13: 105–136.

    Article  Google Scholar 

  • Christensen, C. M., & Bower, J. L. 1996. Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17: 197–281.

    Article  Google Scholar 

  • Claver, E., Llopis, J., Garcia, D., & Molina, H. 1998. Organizational culture for innovation and new technological behavior. The Journal of High Technology Management Research, 9: 55–68.

    Article  Google Scholar 

  • Covin, J. G., & Slevin, D. P. 1989. Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10: 75–87.

    Article  Google Scholar 

  • De Boer, S. J., Gan, W. B., & Shan, G. G. 1998. Critical issues facing R&D managers in China. R&D Management, 28: 187–197.

    Article  Google Scholar 

  • Deshpande, R., & Farley, J. U. 2000. Market-focused organizational transformation in China. Journal of Global Financial Market, 14: 7–35.

    Google Scholar 

  • Deshpande, R., Farley, J. U., & Webster, J. F. 1993. Corporate culture, customer orientation, and innovativeness in Japanese firms: A quadrad analysis. Journal of Marketing, 57: 23–37.

    Article  Google Scholar 

  • Dodgson, M. 2000. The management of technological innovation. New York: Oxford University Press.

    Google Scholar 

  • Doney, P. M., Cannon, J. P., & Mullen, M. R. 1998. Understanding the influence of national culture on the development of trust. Academy of Management Review, 23(3): 601–620.

    Google Scholar 

  • Eisenhardt, K. M. 1985. Control: Organizational and economic approaches. Management Science, 31: 134–149.

    Article  Google Scholar 

  • Eun, J. H., Lee, K., & Wu, G. S. 2006. Explaining the “university-run enterprises” in China: A theoretical framework for university-industry relationship in developing countries and its application to China. Research Policy, 35: 1329–1346.

    Article  Google Scholar 

  • Fan, P. L. 2006. Catching up through developing innovation capability: Evidence from China’s telecom-equipment industry. Technovation, 26: 359–368.

    Article  Google Scholar 

  • Farh, J. L., Tsui, A., Xin, K., & Cheng, B. S. 1998. The influence of relational demography and guanxi: The Chinese case. Organization Science, 9: 471–489.

    Article  Google Scholar 

  • Fischer, W. A., & Zedtwitz, M. V. 2004. Chinese R&D: Naissance, renaissance or mirage?. R&D Management, 34: 349–365.

    Article  Google Scholar 

  • Gatignon, H., & Xuereb, J. M. 1997. Strategic orientation of the firm and new product performance. Journal of Marketing Research, 34: 77–90.

    Article  Google Scholar 

  • Gima, K. A., & Li, H. Y. 2006. The effects of formal controls on supervisee trust in the manager in new product selling: Evidence from young and inexperienced salespeople in China. Journal of Product Innovation Management, 23: 342–358.

    Article  Google Scholar 

  • Han, J. K., Kim, N., & Srivastava, R. K. 1998. Market orientation and organizational performance: Is innovation a missing link?. Journal of Marketing, 62: 30–45.

    Article  Google Scholar 

  • Hitt, M. A., Hoskisson, R. E., Johnson, R. A., & Moesel, D. D. 1996. The market for corporate control and firm innovation. Academy of Management Journal, 33: 1084–1119.

    Article  Google Scholar 

  • Huang, C., Amorim, C., Spinoglio, M., Gouveia, B., & Medina, A. 2004. Organization, programme and structure: An analysis of the Chinese innovation policy framework. R&D Management, 34: 367–387.

    Article  Google Scholar 

  • Huang, X. L., Schroder, B., & Steffens, P. 1999. The Chinese steel industry in transition: Industry perspective on innovation policy. R&D Management, 29: 17–25.

    Article  Google Scholar 

  • Hurley, R. F., & Hult, G. T. M. 1998. Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62: 42–54.

    Article  Google Scholar 

  • Inkpen, A. C., & Wang, P. 2006. An Examination of collaboration and knowledge transfer: China-Singapore Suzhou Industrial Park. Journal of Management Studies, 43: 779–811.

    Article  Google Scholar 

  • Jeong, I., Pae, J. H., & Zhou, D. S. 2006. Antecedents and consequences of the strategic orientations in new product development: The case of Chinese manufacturers. Industrial Marketing Management, 35: 348–358.

    Article  Google Scholar 

  • Kilduff, M., Angelmar, R., & Mehra, A. 2000. Top management team diversity and firm performance: Examining the role of cognitions. Organization Science, 11: 21–34.

    Article  Google Scholar 

  • Kim, Y., & Lee, B. 2002. Patterns of technological learning among the strategic groups in the Korean electronics parts industry. Research Policy, 31: 543–567.

    Article  Google Scholar 

  • Kohli, A. K., & Jaworski, B. J. 1990. Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54: 1–18.

    Article  Google Scholar 

  • Lall, S., & Teubal, M. 1998. Market-stimulating technology policies in developing countries: A framework with examples from East Asia. World Development, 26: 1369–1385.

    Article  Google Scholar 

  • Leonard, D., & Straus, S. 1997. Putting your company’s whole brain to work. Harvard Business Review, 75: 110–119.

    Google Scholar 

  • Li, H. Y. 2001. How does new venture strategy matter in the environment-performance relationship?. Journal of High Technology Management Research, 12: 183–204.

    Article  Google Scholar 

  • Li, H. Y., & Gima, K. A. 2001. Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44: 1123–1134.

    Article  Google Scholar 

  • Li, H. Y., & Gima, K. A. 2002. The adoption of agency business activity, product innovation, and performance in Chinese technology ventures. Strategic Management Journal, 23: 469–490.

    Article  Google Scholar 

  • Li, J., & Zhong, J. 2003. Explaining the growth of international R&D alliances in China. Managerial and Decision Economics, 24: 101–105.

    Article  Google Scholar 

  • Li, J. J. 2005. The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations. Asia Pacific Journal of Management, 22(4): 423–443.

    Article  Google Scholar 

  • Li, J. J., Poppo, L., & Zhou, K. Z. 2008. Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms. Strategic Management Journal, 29: 383–400.

    Article  Google Scholar 

  • Li, Y., Li, L., Liu, Y., & Wang, L. 2005. Linking management control system with product development and process decisions to cope with environment complexity. International Journal of Production Research, 43: 2577–2591.

    Article  Google Scholar 

  • Li, Y., Liu, Y., & Zhao, Y. B. 2006a. The role of market and entrepreneurship orientation and internal control in the new product development activities of Chinese firms. Industrial Marketing Management, 35: 336–347.

    Article  Google Scholar 

  • Li, Y., Sun, Y. F., & Liu, Y. 2006b. An empirical study of SOEs’ market orientation in transitional China. Asia Pacific Journal of Management, 23(1): 93–113.

    Article  Google Scholar 

  • Liu, J. J., & Mao, K. J. 2003, Evolution of organizational culture innovation: Haier Group as a case. Paper presented at the IEEE International Engineering Management Conference, IEMC’03, Albany, New York.

  • Liu, X. L., & White, S. 2001. Comparing innovation systems: A framework and application to China’s transitional context. Research Policy, 30: 1091–1114.

    Article  Google Scholar 

  • Lovett, S., Simmons, L. C., & Kali, R. 1999. Guanxi versus market: Ethics and efficiency. Journal of International Business Studies, 30: 231–248.

    Article  Google Scholar 

  • Lu, Q. W., & Lazonick, W. 2001. The organization of innovation in a transitional economy: Business and government in Chinese electronic publishing. Research Policy, 30: 55–77.

    Article  Google Scholar 

  • Lu, Y., Tsang, E. W. K., & Peng, M. W. 2008. Knowledge management and innovation strategy in the Asia Pacific: Toward an institution-based view. Asia Pacific Journal of Management, 25(3): 361–374.

    Article  Google Scholar 

  • Lumpkin, G. T., & Dess, G. G. 1996. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21: 135–172.

    Google Scholar 

  • Luo, Y. D. 2003. Industrial dynamics and managerial networking in an emerging market: The case of China. Strategic Management Journal, 24: 1315–1327.

    Article  Google Scholar 

  • Luo, Y. D., & Chen, M. 1997. Does guanxi influence firm performance?. Asia Pacific Journal of Management, 14(1): 1–16.

    Article  Google Scholar 

  • Martins, E. C., & Terblanche, F. 2003. Building organizational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6: 64–74.

    Article  Google Scholar 

  • Mehta, R., Polsa, P., Mazur, J., Fan, X. C., & Dubinsky, A. J. 2006. Strategic alliances in international distribution channels. Journal of Business Research, 59: 1094–1104.

    Article  Google Scholar 

  • Miller, D., & Friesen, P. H. 1983. Strategy-making and environment: The third link. Strategic Management Journal, 4: 221–235.

    Article  Google Scholar 

  • Mu, Q., & Lee, K. 2005. Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China. Research Policy, 34: 759–783.

    Article  Google Scholar 

  • Ni, Y. F., & Wu, X. B. 2000. Secondary innovation and strategies for China’s manufacturing industry in the global competition. Paper presented at the IEEE International Conference on Management of Innovation and Technology (ICMIT), 82–87, Singapore, November.

  • Noble, C. H., Sinha, R. K., & Kumar, A. 2002. Market orientation and alternative strategic orientations: A longitudinal assessment of performance implications. Journal of Marketing, 66: 25–39.

    Article  Google Scholar 

  • Nonaka, I. 1990. Redundant, overlapping organization: A Japanese approach to managing the innovation process. California Management Review, 32: 27–38.

    Google Scholar 

  • Park, S. H., & Luo, Y. D. 2001. Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic Management Journal, 22: 455–477.

    Article  Google Scholar 

  • Pegels, C. C., Song, Y. I., & Yang, B. 2000. Management heterogeneity, competitive interaction groups, and firm performance. Strategic Management Journal, 21: 911–923.

    Article  Google Scholar 

  • Peng, M. W. 2002. Towards an institution-based view of business strategy. Asia Pacific Journal of Management, 19(2–3): 251–273.

    Article  Google Scholar 

  • Peng, M. W. 2005. From China strategy to global strategy. Asia Pacific Journal of Management, 22(2): 123–141.

    Article  Google Scholar 

  • Peng, M. W., & Luo, Y. D. 2000. Managerial ties and firm performance in a transition economy: The nature of a micro-macro link. Academy of Management Journal, 43: 486–501.

    Article  Google Scholar 

  • Peng, M. W., & Zhou, J. Q. 2005. How network strategies and institutional transitions evolve in Asia. Asia Pacific Journal of Management, 22(4): 321–336.

    Article  Google Scholar 

  • Peng, M. W., Wang, D. Y. L., & Jiang, Y. 2008. An institution-based view of international business strategy: a focus on emerging economies. Journal of International Business Studies, 39: 920–936.

    Article  Google Scholar 

  • Porter, M. 1998. On competition. Boston: Harvard Business School Press.

    Google Scholar 

  • Tan, J. 2006a. Innovation and risk-taking in a transitional economy: A comparative study of Chinese managers and entrepreneurs. Journal of Business Venturing, 16: 359–376.

    Article  Google Scholar 

  • Tan, J. 2006b. Growth of industry clusters and innovation: Lessons from Beijing Zhongguancun Science Park. Journal of Business Venturing, 21: 827–850.

    Article  Google Scholar 

  • Tan, J., & Litschert, R. J. 1994. Environment strategy relationship and its performance implications: An empirical study of the Chinese electronics industry. Strategic Management Journal, 15: 1–20.

    Google Scholar 

  • Tan, J., & Tan, D. 2005. Environment-strategy co-evolution and co-alignment: A staged model of Chinese SOEs under transition. Strategic Management Journal, 26: 141–157.

    Article  Google Scholar 

  • Tsui, A. S., & Farh, J.-L. 1997. Where guanxi matters. Work & Occupations, 24: 56–79.

    Article  Google Scholar 

  • Veugelers, R., & Cassiman, R. 1999. Make and buy in innovation strategies: Evidence from Belgian manufacturing firms. Research Policy, 28(1): 63–80.

    Article  Google Scholar 

  • Weinzimmer, L. G. 1997. Top management team correlates of organizational growth in a small business. Journal of Small Business Management, 35: 1–10.

    Google Scholar 

  • Wu, W. P., & Leung, A. 2005. Does a micro-macro link exist between managerial value of reciprocity, social capital and firm performance? The case of SMEs in China. Asia Pacific Journal of Management, 22(4): 445–463.

    Article  Google Scholar 

  • Xie, W., & Wu, G. S. 2003. Difference between learning process in small tigers and dragons learning processes of two color TV (CTV) firms within China. Research Policy, 32: 1463–1479.

    Article  Google Scholar 

  • Xin, K. R., & Pearce, J. L. 1996. Guanxi: Connections as substitutes for formal institutional support. Academy of Management Journal, 39: 1641–1658.

    Article  Google Scholar 

  • Zhou, K. Z., Gao, G. Y., Yang, Z., & Zhou, N. 2005a. Developing strategic orientation in China: Antecedents and consequences of market and innovation orientations. Journal of Business Research, 58: 1049–1058.

    Article  Google Scholar 

  • Zhou, K. Z., & Li, C. B. 2007. How does strategic orientation matter in Chinese firms?. Asia Pacific Journal of Management, 24(4): 447–466.

    Article  Google Scholar 

  • Zhou, K. Z., Yim, C. K., & Tse, D. K. 2005b. The effects of strategic orientations on technology and market-based breakthrough innovations. Journal of Marketing, 69: 42–60.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jianjun Yang.

Additional information

We would like to thank Professor Mike Peng (Editor-in-Chief Emeritus) and Professor Yuan Lu for their helpful and insightful comments on multiple drafts of this paper. We acknowledge the financial support from Key Projects of Philosophy and Social Sciences Research, Ministry of Education (No. 09JZD0030) and NSFC (No. 70672053).

Rights and permissions

Reprints and permissions

About this article

Cite this article

Yang, J., Liu, H., Gao, S. et al. Technological innovation of firms in China: Past, present, and future. Asia Pac J Manag 29, 819–840 (2012). https://doi.org/10.1007/s10490-010-9243-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10490-010-9243-3

Keywords

Navigation