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Product innovation and process innovation in SOEs: evidence from the Chinese transition

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  • Yuan Li
  • Yi Liu
  • Feng Ren

Abstract

This paper offers an analysis of the influence of management behavior on the relationship between factors such as market, governance and resources of a firm, and the choice of the type of technological innovation in Chinese state-owned enterprises (SOEs). The authors develop a structural equation model and 12 hypotheses and test the model and hypotheses using a sample of 274 SOEs in China. This study discovers that the choice of innovation types among Chinese SOEs depends on the turbulence in the environment, and on the organizational resources. The key contributions of the study include: testing existing theories of innovation in the context of Chinese SOEs; studying the factors that affect product innovation and process innovation in that context; and demonstrating that market forces and internal governance simultaneously influence SOE innovation. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jtecht:v:32:y:2007:i:1:p:63-85
    DOI: 10.1007/s10961-006-9009-8
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    Cited by:

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    11. 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.
    12. Xiaomin Zhao & Ping Lan, 2017. "How Chinese State-Owned Enterprises Change Their Dynamics in New Product Innovation?," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(1), pages 25-31.
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    15. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    16. Yi Liu & Longwei Wang & Changhong Yuan & Yuan Li, 2012. "Information communication, organizational capability and new product development: an empirical study of Chinese firms," The Journal of Technology Transfer, Springer, vol. 37(4), pages 416-432, August.
    17. Cuevas-Vargas Héctor & Velázquez-Espinoza Noé & Colín-Salgado Mónica, 2022. "Technological Innovation in Colombian Small Firms: A Gender Multi-Group Analysis," Business Systems Research, Sciendo, vol. 13(1), pages 46-65, June.
    18. Rammer, Christian, 2023. "Measuring process innovation output in firms: Cost reduction versus quality improvement," Technovation, Elsevier, vol. 124(C).
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