IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i12p4948-d372732.html
   My bibliography  Save this article

Innovative Climate, a Determinant of Competitiveness and Business Performance in Chinese Law Firms: The Role of Firm Size and Age

Author

Listed:
  • Sughra Bibi

    (Guanghua Law School, Zhejiang University, Hangzhou 310058, China)

  • Asif Khan

    (Department of Tourism and Hotel Management, School of Management, Zhejiang University, Hangzhou 310058, China
    Department of Tourism & Hospitality, Hazara University, Khyber Pakhtunkhwa 21120, Pakistan)

  • Hongdao Qian

    (Guanghua Law School, Zhejiang University, Hangzhou 310058, China)

  • Achille Claudio Garavelli

    (Department of Mechanics, Mathematics and Management, Polytechnic University of Bari, 70125 Bari, Italy)

  • Angelo Natalicchio

    (Department of Mechanics, Mathematics and Management, Polytechnic University of Bari, 70125 Bari, Italy)

  • Paolo Capolupo

    (Department of Mechanics, Mathematics and Management, Polytechnic University of Bari, 70125 Bari, Italy)

Abstract

In the past few decades, a firm’s innovative climate has received much attention in the context of innovative behavior, competitiveness, and business performance. The existing literature has relied to a great extent on innovative climate as an interacting factor and overlooked its role as an antecedent of various organizational phenomena. Furthermore, the interaction effects of the firm’s size and age on the relationships between innovative climate and other organizational variables have gone unnoticed. This study adds to the literature by empirically assessing the effects of the firm’s innovative climate on organizational learning and employees’ innovative behavior as well as its consequences on the firm’s competitiveness and business performance. Additionally, it addresses the interaction impacts of firm size and age on the relationships between the abovementioned variables. This research achieves its goal by developing an integrative research design that analyzes complex relations using covariance-based structural equation modeling (SEM) and regression techniques on a dataset of 408 Chinese law firms. The results indicate that the firm’s innovative climate has a significant positive relationship with organizational learning and employees’ innovative behavior. It is also found that organizational learning has a significant positive influence on employees’ innovative behavior. Meanwhile, organizational learning and employees’ innovative behavior have a significant positive influence on firm competitiveness and business performance. Another important finding is that contextual factors, i.e., firm size and age, strengthen these relations. Theoretical and managerial implications, including links to firm size and age, are provided.

Suggested Citation

  • Sughra Bibi & Asif Khan & Hongdao Qian & Achille Claudio Garavelli & Angelo Natalicchio & Paolo Capolupo, 2020. "Innovative Climate, a Determinant of Competitiveness and Business Performance in Chinese Law Firms: The Role of Firm Size and Age," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:4948-:d:372732
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/12/4948/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/12/4948/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leal-Rodríguez, Antonio Luis & Eldridge, Stephen & Roldán, José Luis & Leal-Millán, Antonio Genaro & Ortega-Gutiérrez, Jaime, 2015. "Organizational unlearning, innovation outcomes, and performance: The moderating effect of firm size," Journal of Business Research, Elsevier, vol. 68(4), pages 803-809.
    2. Rui Sun & Jing Zhao & Xu Ya Chen, 2011. "Exploratory analysis about the status quo and differences of organizational innovative climate in China," Nankai Business Review International, Emerald Group Publishing Limited, vol. 2(2), pages 195-212, June.
    3. Jim Lee, 2009. "Does Size Matter in Firm Performance? Evidence from US Public Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(2), pages 189-203.
    4. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    5. Messeni Petruzzelli, Antonio & Ardito, Lorenzo & Savino, Tommaso, 2018. "Maturity of knowledge inputs and innovation value: The moderating effect of firm age and size," Journal of Business Research, Elsevier, vol. 86(C), pages 190-201.
    6. Natarajan Balasubramanian & Jeongsik Lee, 2008. "Firm age and innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(5), pages 1019-1047, October.
    7. G. Tomas M. Hult & David J. Ketchen & Mathias Arrfelt, 2007. "Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 1035-1052, October.
    8. Tom J. M. Mom & Frans A. J. Van Den Bosch & Henk W. Volberda, 2007. "Investigating Managers' Exploration and Exploitation Activities: The Influence of Top‐Down, Bottom‐Up, and Horizontal Knowledge Inflows," Journal of Management Studies, Wiley Blackwell, vol. 44(6), pages 910-931, September.
    9. Elif Akben-Selcuk, 2016. "Factors Affecting Firm Competitiveness: Evidence from an Emerging Market," IJFS, MDPI, vol. 4(2), pages 1-10, May.
    10. Rajagopal, 2014. "Organizations and Innovation," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 3, pages 58-86, Palgrave Macmillan.
    11. Michael J. Tippins & Ravipreet S. Sohi, 2003. "IT competency and firm performance: is organizational learning a missing link?," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 745-761, August.
    12. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    13. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May.
    14. Popa, Simona & Soto-Acosta, Pedro & Martinez-Conesa, Isabel, 2017. "Antecedents, moderators, and outcomes of innovation climate and open innovation: An empirical study in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 134-142.
    15. Asif Khan & Sughra Bibi & Jiaying Lyu & Achille Claudio Garavelli & Pierpaolo Pontrandolfo & Maria de Angeles Perez Sanchez, 2020. "Uncovering Innovativeness in Spanish Tourism Firms: The Role of Transformational Leadership, OCB, Firm Size, and Age," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    16. Ron Boschma & Anne L. J. ter Wal, 2007. "Knowledge Networks and Innovative Performance in an Industrial District: The Case of a Footwear District in the South of Italy," Industry and Innovation, Taylor & Francis Journals, vol. 14(2), pages 177-199.
    17. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    18. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    19. Qian Hongdao & Sughra Bibi & Asif Khan & Lorenzo Ardito & Muhammad Bilawal Khaskheli, 2019. "Legal Technologies in Action: The Future of the Legal Market in Light of Disruptive Innovations," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    20. Qian Hongdao & Sughra Bibi & Asif Khan & Lorenzo Ardito & Mohammad Nurunnabi, 2019. "Does What Goes Around Really Comes Around? The Mediating Effect of CSR on the Relationship between Transformational Leadership and Employee’s Job Performance in Law Firms," Sustainability, MDPI, vol. 11(12), pages 1-19, June.
    21. Chung, Henry F.L. & Yang, Zhilin & Huang, Pei-How, 2015. "How does organizational learning matter in strategic business performance? The contingency role of guanxi networking," Journal of Business Research, Elsevier, vol. 68(6), pages 1216-1224.
    22. Weerawardena, Jay & O'Cass, Aron & Julian, Craig, 2006. "Does industry matter? Examining the role of industry structure and organizational learning in innovation and brand performance," Journal of Business Research, Elsevier, vol. 59(1), pages 37-45, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qian Hongdao & Sughra Bibi & Dahai Mu & Asif Khan & Asad Raza, 2022. "Legal Business Model Digitalization: The Post COVID-19 Legal Industry," SAGE Open, , vol. 12(2), pages 21582440221, April.
    2. Aneta Sokol & Irena Figurska & Agnieszka Gozdek & Agnieszka Malkowska, 2022. "Study of the Impact of Managers' Attitudes Towards Creativity in Terms of Taking up Creative Activities," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 244-255.
    3. Jinyoung Min & Junyeong Lee & Sunghan Ryu & Heeseok Lee, 2022. "The effects of interaction between team climates and KMS value perception on knowledge activities: a multilevel socio-technical systems approach," Information Technology and Management, Springer, vol. 23(1), pages 1-21, March.
    4. Adamu Ahmed Girei & Rafiatu Ahmad Digil & Hauwa Adamu Duhu, 2024. "Creativity, Innovation, Small and Medium Scale Enterprises Performance: A Proposed Mediating Framework in North East Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 387-393, September.
    5. Lu, Hao & Fan, Yiwei & Jiao, Liudan & Wu, Ya, 2024. "Assessment and spatial effect of urban agglomeration business environments: A case study of two urban agglomerations in China," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    6. Gomes, Giancarlo & Seman, Laio Oriel & De Montreuil Carmona, Linda Jessica, 2022. "Industry does matter: Analysing innovation, firm performance and organisational learning heterogeneities on Brazilian manufacturing sectors," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 544-555.
    7. Bienvenido S. Cortes & Zhengyao Ooi, 2023. "Cultural Intelligence, Firm Capabilities, and Performance: The Case of German Subsidiaries in Malaysia," Businesses, MDPI, vol. 3(3), pages 1-15, September.
    8. Haiyan Yu & Shan Li & Yiyuan Liu & Qiuping Liu & Yuxin Lu, 2023. "Do International Trade Frictions Influence the Competitiveness of Entity Enterprises? Evidence from the Perspective of Financialization," SAGE Open, , vol. 13(4), pages 21582440231, December.
    9. GuoHua Cao & WenJun Geng & Jing Zhang & Qi Li, 2023. "Social network, financial constraint, and corporate innovation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 667-692, September.
    10. Pilar Martín-Hernández & Marta Gil-Lacruz & Ana Cristina Tesán-Tesán & Amalia Raquel Pérez-Nebra & Juan Luis Azkue-Beteta & María Luz Rodrigo-Estevan, 2022. "The Moderating Role of Teamwork Engagement and Teambuilding on the Effect of Teamwork Competence as a Predictor of Innovation Behaviors among University Students," IJERPH, MDPI, vol. 19(19), pages 1-16, September.

    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. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    2. Knight, Gary & Moen, Øystein & Madsen, Tage Koed, 2020. "Antecedents to differentiation strategy in the exporting SME," International Business Review, Elsevier, vol. 29(6).
    3. Verdu-Jover, Antonio J. & Alos-Simo, Lirios & Gomez-Gras, Jose-Maria, 2018. "Adaptive culture and product/service innovation outcomes," European Management Journal, Elsevier, vol. 36(3), pages 330-340.
    4. Baker, William E. & Mukherjee, Debmalya & Gattermann Perin, Marcelo, 2022. "Learning orientation and competitive advantage: A critical synthesis and future directions," Journal of Business Research, Elsevier, vol. 144(C), pages 863-873.
    5. Qian Hongdao & Sughra Bibi & Dahai Mu & Asif Khan & Asad Raza, 2022. "Legal Business Model Digitalization: The Post COVID-19 Legal Industry," SAGE Open, , vol. 12(2), pages 21582440221, April.
    6. Jaffar Abbas & Qingyu Zhang & Iftikhar Hussain & Sabahat Akram & Aneeqa Afaq & Muhammad Afzal Shad, 2020. "Sustainable Innovation in Small Medium Enterprises: The Impact of Knowledge Management on Organizational Innovation through a Mediation Analysis by Using SEM Approach," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    7. Ahammad, Mohammad Faisal & Tarba, Shlomo Yedidia & Liu, Yipeng & Glaister, Keith W., 2016. "Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention," International Business Review, Elsevier, vol. 25(1), pages 66-75.
    8. Sirén, Charlotta & Kohtamäki, Marko, 2016. "Stretching strategic learning to the limit: The interaction between strategic planning and learning," Journal of Business Research, Elsevier, vol. 69(2), pages 653-663.
    9. Di Guardo, Maria Chiara & Marrocu, Emanuela & Paci, Raffaele, 2016. "The effect of local corruption on ownership strategy in cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 69(10), pages 4225-4241.
    10. Zhou, H. & Uhlaner, L.M., 2009. "Knowledge Management in the SME and its Relationship to Strategy, Family Orientation and Organization Learning," ERIM Report Series Research in Management ERS-2009-026-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. Nima Heirati & Aron O’Cass, 2016. "Supporting new product commercialization through managerial social ties and market knowledge development in an emerging economy," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 411-433, June.
    12. María José Sanzo & Luis Ignacio Álvarez & Marta Rey, 2017. "Lights and Shadows of Business-Nonprofit Partnerships: The Role of Nonprofit Learning and Empowerment in this Ethical Puzzle," Sustainability, MDPI, vol. 9(8), pages 1-21, August.
    13. Zheng, Yu Hao & Shi, Guicheng & Zhong, Hao & Liu, Matthew Tingchi & Lin, Zixiao, 2023. "Motivating strategic front-line employees for innovative sales in the digital transformation era: The mediating role of salesperson learning," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    14. Farhad Alipour & Khairuddin Idris & Roohangiz Karimi, 2011. "Knowledge Creation and Transfer: Role of Learning Organization," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(3), pages 61-67, August.
    15. Gabriel Szulanski & Robert J. Jensen, 2004. "Overcoming stickiness: An empirical investigation of the role of the template in the replication of organizational routines," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 347-363.
    16. Fiorenza Belussi & Luciano Pilotti & Silvia Rita Sedita, 2006. "Learning at the boundaries for industrial districts between exploitation of local resources and exploration of global knowledge flows," "Marco Fanno" Working Papers 0033, Dipartimento di Scienze Economiche "Marco Fanno".
    17. Marouane Khallouk & Marc Robert & Sophie Mignon & Philippe Giuliani, 2016. "Management innovation in nonprofit organizations: an explorative study of the antecedents," Post-Print hal-02123059, HAL.
    18. Jane Lu & Xufei Ma, 2015. "Partner resource asymmetry and IJV survival," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 1039-1064, December.
    19. Tajeddini Kayhan & Mueller Stephen, 2019. "Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance," Entrepreneurship Research Journal, De Gruyter, vol. 9(4), pages 1-13, October.
    20. Naoki Yasuda & Hitoshi Mitsuhashi, 2017. "Learning from Political Change and the Development of MNCs’ Political Capabilities: Evidence from the Global Mining Industry," Management International Review, Springer, vol. 57(5), pages 749-774, October.

    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:gam:jsusta:v:12:y:2020:i:12:p:4948-:d:372732. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.