IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i2p407-423.html
   My bibliography  Save this article

Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province

Author

Listed:
  • Hui Wang
  • Anyin Jiang
  • Fayyaz Ahmad
  • Nabila Abid
  • Abbas Ali Chandio

Abstract

The purpose of this study is to explore what are the determinant influencing factors of the dilemma faced by state‐owned enterprises (SOEs) in implementing innovation‐driven development strategy (IDDS), to propose a suitable localized theory. It also suggests specific actions to break the post‐effects dilemma with the support of this theory. Based on the innovation‐driven survey data of provincial SOEs in Gansu Province, this study adopts grounded theory to conduct exploratory research. This paper constructs a behavior process model of “pre‐motivation, innovation path, and post‐effects dilemma” to drive SOE's innovation and expounds on the incidence relation among the three. The results show that the external administrative force and institutional mechanism drive have both indirect and direct impacts on the innovation path choice of SOEs. The endogenous drive is distorted by external administrative force and institutional mechanism drive, leading to the limited innovation path choice and post‐effects dilemma. This paper puts forward the theory of “Attribute Imbalance–Weakened Autonomy–Sluggish Innovation” and explains why it is sometimes difficult to implement the IDDS of SOEs. However, there are some regional limitations in the application scenarios of the theory. Whether it has broader implications need to further explore. Future theoretical testing should be conducted with a sample of SOEs in developed market regions. It is possible to study the differences in the degree of government intervention in SOEs, the ways of intervention, and the impact of these differences on SOEs' balancing dual attribute conflicts.

Suggested Citation

  • Hui Wang & Anyin Jiang & Fayyaz Ahmad & Nabila Abid & Abbas Ali Chandio, 2024. "Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 407-423, February.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:2:p:407-423
    DOI: 10.1002/bse.3497
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3497
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3497?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zhongzhen Miao & Huanyong Ji, 2020. "Challenges to the Promotion of Employee-Driven Innovation in State-Owned Enterprises: Two Cases from the Automotive Sector in China," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    2. Abid, Nabila & Ahmad, Fayyaz & Aftab, Junaid & Razzaq, Asif, 2023. "A blessing or a burden? Assessing the impact of Climate Change Mitigation efforts in Europe using Quantile Regression Models," Energy Policy, Elsevier, vol. 178(C).
    3. Zhang, Wei David & Zhang, Shuo & Luo, Xueming, 2006. "Technological progress, inefficiency, and productivity growth in the US securities industry, 1980-2000," Journal of Business Research, Elsevier, vol. 59(5), pages 589-594, May.
    4. Kamien, Morton I & Schwartz, Nancy L, 1974. "Product Durability under Monopoly and Competition," Econometrica, Econometric Society, vol. 42(2), pages 289-301, March.
    5. Fernanda Brollo & Tommaso Nannicini & Roberto Perotti & Guido Tabellini, 2013. "The Political Resource Curse," American Economic Review, American Economic Association, vol. 103(5), pages 1759-1796, August.
    6. Du, Weijian & Li, Mengjie & Wang, Faming, 2020. "Role of rent-seeking or technological progress in maintaining the monopoly power of energy enterprises: An empirical analysis based on micro-data from China," Energy, Elsevier, vol. 202(C).
    7. Freeman, Chris, 1995. "The 'National System of Innovation' in Historical Perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(1), pages 5-24, February.
    8. Jinyang Hua & Paul Miesing & Mingfang Li, 2006. "An Empirical Taxonomy of SOE Governance in Transitional China," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(4), pages 401-433, November.
    9. Eskil Goldeng & Leo A. Grünfeld & Gabriel R. G. Benito, 2008. "The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1244-1273, November.
    10. Rudy M. Ramdhan & Daniel Kisahwan & Alex Winarno & Deni Hermana, 2022. "Internal Corporate Social Responsibility as a Microfoundation of Employee Well-Being and Job Performance," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    11. O'Connor, Neale G. & Deng, Johnny & Luo, Yadong, 2006. "Political constraints, organization design and performance measurement in China's state-owned enterprises," Accounting, Organizations and Society, Elsevier, vol. 31(2), pages 157-177, February.
    12. Kam C. Chan & Yining Chen & Baohua Liu, 2021. "The Linear and Non-Linear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework," European Accounting Review, Taylor & Francis Journals, vol. 30(4), pages 733-765, August.
    13. Qi Zhong & Tang Tang, 2018. "Impact of Government Intervention on Industrial Cluster Innovation Network in Developing Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(14), pages 3351-3365, November.
    14. Nimesh Salike & Yanghua Huang & Zhifeng Yin & Douglas Zhihua Zeng, 2021. "Making of an innovative economy: a study of diversity of Chinese enterprise innovation," China Finance Review International, Emerald Group Publishing Limited, vol. 12(3), pages 496-518, July.
    15. Xudong Gao, 2019. "Approaching the technological innovation frontier: evidence from Chinese SOEs," Industry and Innovation, Taylor & Francis Journals, vol. 26(1), pages 100-120, January.
    16. Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 995-1025.
    17. Morton I. Kamien & Nancy L. Schwartz, 1976. "On the Degree of Rivalry for Maximum Innovative Activity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(2), pages 245-260.
    18. Luo, Kun & Lim, Edwin KiaYang & Qu, Wen & Zhang, Xuan, 2021. "Board cultural diversity, government intervention and corporate innovation effectiveness: Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(2).
    19. Jinyong Zhan & Jingci Zhu, 2021. "The effects of state ownership on innovation: evidence from the state-owned enterprises reform in China," Applied Economics, Taylor & Francis Journals, vol. 53(1), pages 145-163, January.
    20. Min Zhu & Robert C. Camp & Maali Ashamalla & Raj Garg, 2007. "Comparison of Entrepreneurship Environment for Executives between State‐owned and Private Enterprises in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(6), pages 104-120, November.
    21. Arocena, Pablo & Oliveros, Diana, 2012. "The efficiency of state-owned and privatized firms: Does ownership make a difference?," International Journal of Production Economics, Elsevier, vol. 140(1), pages 457-465.
    22. Piret TONURIST & Erkki KARO, 2016. "State Owned Enterprises As Instruments Of Innovation Policy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(4), pages 623-648, December.
    23. Xuan Zhao & Benhong Peng & Chaoyu Zheng & Anxia Wan, 2022. "Business model innovation risk factors based on grounded theory: A multiple‐case analysis of cold chain logistics companies in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2108-2118, September.
    24. Matuszak, Piotr & Kabaciński, Bartosz, 2021. "Non-commercial goals and financial performance of state-owned enterprises – some evidence from the electricity sector in the EU countries," Journal of Comparative Economics, Elsevier, vol. 49(4), pages 1068-1087.
    25. Nelson, Richard R, 1986. "Institutions Supporting Technical Advance in Industry," American Economic Review, American Economic Association, vol. 76(2), pages 186-189, May.
    26. Davis, Lance & North, Douglass, 1970. "Institutional Change and American Economic Growth: A First Step Towards a Theory of Institutional Innovation," The Journal of Economic History, Cambridge University Press, vol. 30(1), pages 131-149, March.
    27. Panicker, Vidya Sukumara & Upadhyayula, Rajesh Srinivas & Sivakumar, Sandeep, 2022. "Internationalization of hybrid state-owned enterprises from emerging markets: Institutional investors as enablers," Journal of Business Research, Elsevier, vol. 151(C), pages 409-422.
    28. Yingkai Tang & Aswad Akram & Lucian‐Ionel Cioca & Syed Ghulam Meran Shah & Muhammad Asim Ali Qureshi, 2021. "Whether an innovation act as a catalytic moderator between corporate social responsibility performance and stated owned and non‐state owned enterprises' performance or not? An evidence from Pakistani ," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1127-1141, May.
    29. Henning Kroll & Kou Kou, 2019. "Innovation output and state ownership: empirical evidence from China’s listed firms," Industry and Innovation, Taylor & Francis Journals, vol. 26(2), pages 176-198, February.
    30. Deeds, David L. & Decarolis, DONA & Coombs, Joseph, 2000. "Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms," Journal of Business Venturing, Elsevier, vol. 15(3), pages 211-229, May.
    31. Morton I. Kamien & Nancy L. Schwartz, 1978. "Potential Rivalry, Monopoly Profits and the Pace of Inventive Activity," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 45(3), pages 547-557.
    32. Zhongju Liao, 2018. "Corporate culture, environmental innovation and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1368-1375, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steffen, Bjarne & Karplus, Valerie & Schmidt, Tobias S., 2022. "State ownership and technology adoption: The case of electric utilities and renewable energy," Research Policy, Elsevier, vol. 51(6).
    2. Kapoor, Rahul & Klueter, Thomas, 2020. "Progress and setbacks: The two faces of technology emergence," Research Policy, Elsevier, vol. 49(1).
    3. Birgitte Grøgaard & Asmund Rygh & Gabriel R. G. Benito, 2019. "Bringing corporate governance into internalization theory: State ownership and foreign entry strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1310-1337, October.
    4. Xiong, Xiancheng & Ming Chen, & Chen, Chen, 2024. "Corporate governance matters: How do reduced state-owned shares lower firms’ market power in a developing country?," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 211-224.
    5. Alexander Galetovic & Ángel Cabrera, "undated". "Tópicos en la Economía de la Investigación Tecnológica," Documentos de Trabajo 121, Instituto de Economia. Pontificia Universidad Católica de Chile..
    6. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
    7. Luo, Kun & Lim, Edwin KiaYang & Qu, Wen & Zhang, Xuan, 2021. "Board cultural diversity, government intervention and corporate innovation effectiveness: Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(2).
    8. Thi Cam Tu Luong & Ann Jorissen & Ine Paeleman, 2019. "Performance Measurement for Sustainability: Does Firm Ownership Matter," Sustainability, MDPI, vol. 11(16), pages 1-35, August.
    9. Mehrez, Abraham & Justman, Moshe, 2001. "On the efficiency of the parallel path R&D approach: a stochastic game analysis," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 57(1), pages 19-28.
    10. Estrin, Saul & Meyer, Klaus E. & Nielsen, Bo B. & Nielsen, Sabina, 2016. "Home country institutions and the internationalization of state owned enterprises: A cross-country analysis," Journal of World Business, Elsevier, vol. 51(2), pages 294-307.
    11. Joyce C. Wang & Jingtao Yi & Xiuping Zhang & Mike W. Peng, 2022. "Pyramidal Ownership and SOE Innovation," Journal of Management Studies, Wiley Blackwell, vol. 59(7), pages 1839-1868, November.
    12. Francesco Decarolis & Cristina Giorgiantonio, 2020. "Corruption red flags in public procurement: new evidence from Italian calls for tenders," Questioni di Economia e Finanza (Occasional Papers) 544, Bank of Italy, Economic Research and International Relations Area.
    13. Evans Opoku‐Mensah & Yuming Yin & Sandra Chukwudumebi Obiora & Peter Adjei Darko, 2022. "Grabbing hand or helping hand? Ownership interventions and acquirers returns; the role of provincial idiosyncrasies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4797-4815, October.
    14. Michael Peneder & Susanne Bärenthaler-Sieber & Michael Böheim & Thomas Url, 2021. "Der Staat als langfristiger Investor," WIFO Studies, WIFO, number 66819, March.
    15. Castelnovo, Paolo, 2022. "Innovation in private and state-owned enterprises: A cross-industry analysis of patenting activity," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 98-113.
    16. Boardman, Anthony E. & Vining, Aidan R. & Weimer, David L., 2016. "The long-run effects of privatization on productivity: Evidence from Canada," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1001-1017.
    17. Xiang, Yitian & Cui, Haotian & Bi, Yunxiao, 2023. "The impact and channel effects of banking competition and government intervention on carbon emissions: Evidence from China," Energy Policy, Elsevier, vol. 175(C).
    18. Xin Pan & Xuanjin Chen & Paresha Sinha & Niannian Dong, 2020. "Are firms with state ownership greener? An institutional complexity view," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 197-211, January.
    19. Anja Baum & Clay Hacknay & Paulo Medas & Mouhamadou Sy, 2024. "Governance and state-owned enterprises: how costly is corruption?," Economics of Governance, Springer, vol. 25(2), pages 181-208, June.
    20. Zhang, Huiming & Wan, Dayu & Sun, Chuanwang & Wu, Kai & Lin, Caixia, 2023. "Does political inspection promote corporate green innovation?," Energy Economics, Elsevier, vol. 123(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:2:p:407-423. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.