What drives new product innovation in China? An integrative strategy tripod approach

Jorge Heredia, Xiaohua Yang, Alejandro Flores, Cathy Rubiños, Walter Heredia

Research output: Contribution to journalArticle in a journalpeer-review

8 Scopus citations

Abstract

This study explores the determinants that drive new product innovation by employing the integrative strategy tripod approach. We analyze data from the World Bank Enterprise Survey on 1,692 manufacturing firms in China using a novel methodological approach (a fuzzy set qualitative comparative analysis) that focuses on multiple conjectural causations. Interestingly, our findings suggest that R&D investment alone is not a sufficient condition to facilitate a firm's product innovation, but stable government policy is a necessary condition for R&D investment. Even with a low level of R&D investments, it can achieve innovation if those investments are made in conjunction with high technology information system investments for supporting customer relationships. Finally, we find that when firms perceive informal competition to be a significant obstacle to their operations and R&D investment, they tend to engage in corrupt actions to create innovation. Implications for research and practice are provided.
Original languageEnglish
Pages (from-to)393-409
Number of pages17
JournalThunderbird International Business Review
Volume62
Issue number4
DOIs
StatePublished - Jul 2020

Bibliographical note

Publisher Copyright:
© 2020 Wiley Periodicals, Inc.

Keywords

  • China
  • Product innovation
  • corruption
  • fuzzy set qualitative comparative analysis
  • informal competition
  • strategy tripod

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