IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i6p2405-d334335.html
   My bibliography  Save this article

Challenges to the Promotion of Employee-Driven Innovation in State-Owned Enterprises: Two Cases from the Automotive Sector in China

Author

Listed:
  • Zhongzhen Miao

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

  • Huanyong Ji

    (School of Public Policy and Management, Tsinghua University, Beijing 100084, China)

Abstract

Employee-driven innovations (EDIs) are increasingly regarded as one of main source of innovation and sustainable competitive advantage, yet many studies indicate that EDIs are often undervalued in state-owned enterprises (SOEs) in China. It remains unclear what the challenges are to the promotion of EDIs in SOEs and how these challenges could be addressed with well-designed managerial practices such as a suggestion system. This study aims to address this research gap by studying two SOEs in the Chinese automotive industry using the multiple-case study method. A total of 12 respondents from the two SOEs have been interviewed as part of a four-year research project. On the basis of the analysis of two cases, it is found that SOEs that appointed a top-manager with firm-specific knowledge and long-term tenure successfully promoted EDIs with a well-designed supporting suggestion system in place. Conversely, the SOEs that appointed a top-manager with little firm-specific knowledge and short-term tenure have not successfully promoted EDIs and its suggestion system is also poorly designed. In conclusion, outsider control and short-term tenure of top manager are two major challenges to promote EDIs in SOEs. This study contributes to the literature by identifying the potential challenges of introducing EDIs and relevant practices in SOEs in China.

Suggested Citation

  • 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.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2405-:d:334335
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/6/2405/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/6/2405/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yuan Li & Yi Liu & Feng Ren, 2007. "Product innovation and process innovation in SOEs: evidence from the Chinese transition," The Journal of Technology Transfer, Springer, vol. 32(1), pages 63-85, April.
    2. Mark Lehrer & Andrew Tylecote & Emmanuelle Conesa, 1999. "Corporate Governance, Innovation Systems and Industrial Performance," Industry and Innovation, Taylor & Francis Journals, vol. 6(1), pages 25-50.
    3. Tylecote, Andrew & Ramirez, Paulina, 2006. "Corporate governance and innovation: The UK compared with the US and 'insider' economies," Research Policy, Elsevier, vol. 35(1), pages 160-180, February.
    4. Freeman, Chris, 1994. "The Economics of Technical Change," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(5), pages 463-514, October.
    5. Andrew Tylecote & Paulina Ramirez, 2008. "Finance, Corporate Governance and the New Techno-Economic Paradigm," Recherches économiques de Louvain, De Boeck Université, vol. 74(4), pages 583-613.
    6. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    7. Veronika Kurz & Stefan Hüsig & Michael Dowling, 2018. "What drives different employee types of innovative behaviour? Development and test of an integrative model of employee driven innovation in German firms," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 22(4/5), pages 397-426.
    8. Hoegl, Martin & Schulze, Anja, 2005. "How to Support Knowledge Creation in New Product Development:: An Investigation of Knowledge Management Methods," European Management Journal, Elsevier, vol. 23(3), pages 263-273, June.
    9. Pavitt, Keith & Patel, Pari, 1988. "The International Distribution and Determinants of Technological Activities," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 4(4), pages 35-55, Winter.
    10. Anthony Arundel & Edward Lorenz & Bengt-Åke Lundvall & Antoine Valeyre, 2007. "How Europe's economies learn: a comparison of work organization and innovation mode for the EU-15," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1175-1210, December.
    11. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    12. Cai, Jing & Tylecote, Andrew, 2008. "Corporate governance and technological dynamism of Chinese firms in mobile telecommunications: A quantitative study," Research Policy, Elsevier, vol. 37(10), pages 1790-1811, December.
    13. Andrew Tylecote & Jing Cai & Jiajia Liu, 2010. "Why do mainland Chinese firms succeed in some sectors and fail in others? A critical view of the Chinese system of innovation," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 7(2), pages 123-144.
    14. Mavis Agyemang Opoku & Suk Bong Choi & Seung-Wan Kang, 2019. "Servant Leadership and Innovative Behaviour: An Empirical Analysis of Ghana’s Manufacturing Sector," Sustainability, MDPI, vol. 11(22), pages 1-18, November.
    15. Anke Buhl & Susanne Blazejewski & Franziska Dittmer, 2016. "The More, the Merrier: Why and How Employee-Driven Eco-Innovation Enhances Environmental and Competitive Advantage," Sustainability, MDPI, vol. 8(9), pages 1-17, September.
    16. Xiao, Yangao & Tylecote, Andrew & Liu, Jiajia, 2013. "Why not greater catch-up by Chinese firms? The impact of IPR, corporate governance and technology intensity on late-comer strategies," Research Policy, Elsevier, vol. 42(3), pages 749-764.
    17. Lee, You-Na & Walsh, John P., 2016. "Inventing while you work: Knowledge, non-R&D learning and innovation," Research Policy, Elsevier, vol. 45(1), pages 345-359.
    18. Jiajia Liu & Andrew Tylecote, 2009. "Corporate Governance and Technological Capability Development: Three Case Studies in the Chinese Auto Industry," Industry and Innovation, Taylor & Francis Journals, vol. 16(4-5), pages 525-544.
    19. Peter B. Doeringer & Edward Lorenz & David G. Terkla, 2003. "The adoption and diffusion of high-performance management: lessons from Japanese multinationals in the West," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(2), pages 265-286, March.
    20. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    21. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    22. Gary J. Young & Martin P. Charns & Stephen M. Shortell, 2001. "Top manager and network effects on the adoption of innovative management practices: a study of TQM in a public hospital system," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 935-951, October.
    23. John Child, 1974. "Managerial And Organizational Factors Associated With Company Performance Part I," Journal of Management Studies, Wiley Blackwell, vol. 11(3), pages 175-189, October.
    24. Ching-Hsun Chang, 2011. "The Influence of Corporate Environmental Ethics on Competitive Advantage: The Mediation Role of Green Innovation," Journal of Business Ethics, Springer, vol. 104(3), pages 361-370, December.
    25. Andrew TYLECOTE & Paulina RAMIREZ, 2008. "Finance, Corporate Governance and the New Techno-Economic Paradigm," Discussion Papers (REL - Recherches Economiques de Louvain) 2008045, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    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. Opland, Leif Erik & Pappas, Ilias O. & Engesmo, Jostein & Jaccheri, Letizia, 2022. "Employee-driven digital innovation: A systematic review and a research agenda," Journal of Business Research, Elsevier, vol. 143(C), pages 255-271.
    2. 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.

    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. Gema Albort-Morant & Jörg Henseler & Gabriel Cepeda-Carrión & Antonio L. Leal-Rodríguez, 2018. "Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    2. Choi, Suk Bong & Lee, Soo Hee & Williams, Christopher, 2011. "Ownership and firm innovation in a transition economy: Evidence from China," Research Policy, Elsevier, vol. 40(3), pages 441-452, April.
    3. Yali Zhang & Jun Sun & Zhaojun Yang & Shurong Li, 2018. "Organizational Learning and Green Innovation: Does Environmental Proactivity Matter?," Sustainability, MDPI, vol. 10(10), pages 1-14, October.
    4. Xiao, Yangao & Tylecote, Andrew & Liu, Jiajia, 2013. "Why not greater catch-up by Chinese firms? The impact of IPR, corporate governance and technology intensity on late-comer strategies," Research Policy, Elsevier, vol. 42(3), pages 749-764.
    5. Zhaojun Yang & Jun Sun & Yali Zhang & Ying Wang, 2017. "Green, Green, It’s Green: A Triad Model of Technology, Culture, and Innovation for Corporate Sustainability," Sustainability, MDPI, vol. 9(8), pages 1-23, August.
    6. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    7. Kalaivani Jayaraman & Sreenivasan Jayashree & Magiswary Dorasamy, 2023. "The Effects of Green Innovations in Organizations: Influence of Stakeholders," Sustainability, MDPI, vol. 15(2), pages 1-13, January.
    8. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    9. Long, Xingle & Chen, Yaqiong & Du, Jianguo & Oh, Keunyeob & Han, Insoo, 2017. "Environmental innovation and its impact on economic and environmental performance: Evidence from Korean-owned firms in China," Energy Policy, Elsevier, vol. 107(C), pages 131-137.
    10. Dan Huang & Jie Cheng & Xiaofeng Quan & Yanling Wu, 2024. "Managerial attention to environmental protection and corporate green innovation," Review of Quantitative Finance and Accounting, Springer, vol. 63(3), pages 1047-1081, October.
    11. Jiali Chen & Aiqing Zhang, 2023. "Exploring How and When Environmental Corporate Social Responsibility Impacts Employees’ Green Innovative Work Behavior: The Mediating Role of Creative Self-Efficacy and Environmental Commitment," Sustainability, MDPI, vol. 16(1), pages 1-21, December.
    12. Zhang, Haoyu & Shi, Yongjiang & Liu, Jianxin & Wu, Xiaobo, 2021. "How do technology strategies affect the catch-up progress of high-tech latecomers? Evidence from two Chinese research-institute-transformed telecommunications firms," Journal of Business Research, Elsevier, vol. 122(C), pages 805-821.
    13. Licheng Yang & Shijie Song & Chunlin Liu, 2024. "Green signals: The impact of environmental protection support policies on firms' green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3258-3278, May.
    14. Bashar Barakat & Marwan Milhem & Gehad Mohammed Ahmed Naji & Mohammed Alzoraiki & Habsah Binti Muda & Ali Ateeq & Zahida Abro, 2023. "Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    15. Gema Albort-Morant & Jörg Henseler & Antonio Leal-Millán & Gabriel Cepeda-Carrión, 2017. "Mapping the Field: A Bibliometric Analysis of Green Innovation," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    16. Mert Gürlek & Muharrem Tuna, 2018. "Reinforcing competitive advantage through green organizational culture and green innovation," The Service Industries Journal, Taylor & Francis Journals, vol. 38(7-8), pages 467-491, June.
    17. Mohammad Jamal Bataineh & Pedro Sánchez‐Sellero & Fayssal Ayad, 2024. "Green is the new black: How research and development and green innovation provide businesses a competitive edge," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1004-1023, February.
    18. Stefano Dughera, 2020. "Skills, preferences and rights: evolutionary complementarities in labor organization," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 843-866, July.
    19. Xinwei Li & Wenjuan Zeng & Mao Xu, 2022. "The Moderating Role of IT Capability on Green Innovation and Ambidexterity: Towards a Corporate Sustainable Development," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    20. Marcos Carchano & Inmaculada Carrasco & Ángela González, 2024. "Eco‐innovation and environmental performance: Insights from Spanish wine companies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 595-623, June.

    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:6:p:2405-:d:334335. 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.