The impact of innovation intensity, scope, and spillovers on sales growth in Chinese firms

Asia Pacific Journal of Management

Volumn 31, Issue 1, 2014, Pages 25-46

  Choi, Suk Bong ^a   Williams, Christopher ^b  

^a University of Ulsan   (South Korea)

^b UNIVERSITY OF WESTERN ONTARIO   (Canada)

Author keywords

China; Innovation; Sales growth

Indexed keywords

EID: 84894625454     PISSN: 02174561     EISSN: 15729958     Source Type: Journal    
DOI: 10.1007/s10490-012-9329-1     Document Type: Article

References (124)

1. Ahuja, G., & Katila, R. 2001. Technological acquisitions and the innovation performance of acquiring firms: A longitudinal study. Strategic Management Journal, 22(3): 197-220.
2. Ahuja, G., & Lampert, C. M. 2001. Entrepreneurship in the large corporation: A longitudinal study of how established firms create breakthrough inventions. Strategic Management Journal, 22(6-7): 521-543.
3. Arrow, K. J. 1962. Economic welfare and the allocation of resources for inventions. In R. Nelson (Ed.). The rate and direction of inventive activity: Economic and social factors. Princeton: Princeton University Press.
4. Ashton, W. B., & Sen, R. K. 1989. Using patent information in technology business planning-Part I & II. Research Technology Management, 32(1): 36-42.
5. Auh, S., & Menguc, B. 2005. Balancing exploration and exploitation: The moderating role of competitive intensity. Journal of Business Research, 58: 1652-1661.
6. Bayus, B. L., Erickson, G., & Jacobson, R. 2003. The financial rewards of new product introductions in the personal computer industry. Management Science, 49(2): 197-210.
7. Belderbos, R., Carree, M., & Lokshin, B. 2004. Cooperative R&D and firm performance. Research Policy, 33(10): 1477-1492.
8. Bernstein, J., & Mohnen, P. 1998. International R&D spillovers between US and Japanese R&D intensive sectors. Journal of International Economics, 44(2): 315-338.
9. Bierly, P., & Chakrabarti, A. 1996. Generic knowledge strategies in the US pharmaceutical industry. Strategic Management Journal, Winter Special Issue, 17: 123-135.
10. Bradley, M., Jarrell, G., & Kim, H. 1984. On the existence of an optimal capital structure: Theory and evidence. Journal of Finance, 39(3): 857-880.
11. Branstetter, L. G. 2001. Are knowledge spillovers international or intranational in scope? Microeconometric evidence from the US and Japan. Journal of International Economics, 53(1): 53-79.
12. Breschi, S., Malerba, F., & Orsenigo, L. 2000. Technological regimes and Schumpeterian patterns of innovation. Economic Journal, 110(April): 388-410.
13. Breusch, T. S., & Pagan, A. R. 1980. The Lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1): 239-253.
14. Carpenter, R. E., Lazonick, W., & O'Sullivan, M. 2003. The stock market and innovative capability in the new economy: The optical networking industry. Industrial and Corporate Change, 12(5): 963-1034.
15. Cassiman, B., & Veugelers, R. 2002. R&D cooperation and spillovers: Some empirical evidence from Belgium. American Economic Review, 92(4): 1169-1184.
16. Castrogiovanni, G. J. 2002. Organization task environments: Have they changed fundamentally over time?. Journal of Management, 28(2): 129-150.
17. Chaney, P. K., & Devinney, T. M. 1992. New product innovations and stock price performance. Journal of Business Finance and Accounting, 19(5): 677-695.
18. Chang, S. J., Chung, C., & Mahmood, I. P. 2006. When and how does business group affiliation promote firm innovation? A tale of two emerging economies. Organization Science, 17(5): 637-656.
19. Chang, P. L., & Shih, H. Y. 2004. The innovation systems of Taiwan and China: A comparative analysis. Technovation, 24: 529-539.
20. Chang, S. J., & Hong, J. 2000. Economic performance of group-affiliated companies in Korea: Intragroup resource sharing and internal business transactions. Academy of Management Journal, 43(3): 429-448.
21. Choi, S. B., Lee, S. H., & Williams, C. 2011. Ownership and firm innovation in a transition economy: Evidence from China. Research Policy, 40(3): 441-452.
22. Choi, S. B., Park, B. I., & Hong, P. 2012. Does ownership structure matter for firm technological innovation performance? The case of Korean firms. Corporate Governance: An International Review, 20(3): 267-288.
23. Cohen, W., & Klepper, S. 1996. A reprise of size and R&D. Economic Journal, 106(July): 925-952.
24. Cohen, W., & Levinthal, D. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1): 128-152.
25. Crépon, B., Duguet, E., & Mairesse, J. 1998. Research, innovation and productivity: An econometric analysis at the firm level. Economics of Innovation and New Technology, 7(2): 115-158.
26. Darroch, J. 2005. Knowledge management, innovation and firm performance. Journal of Knowledge Management, 9(3): 101-115.
27. De Bondt, R. 1997. Spillovers and innovative activities. International Journal of Industrial Organization, 15(1): 1-28.
28. DeCarolis, D. M., & Deeds, D. L. 1999. The impact of stocks and flows of organizational knowledge on firm performance: An empirical investigation of the biotechnology industry. Strategic Management Journal, 20(10): 953-968.
29. Dinopoulos, E., & Thompson, P. 1998. Schumpeterian growth without scale effects. Journal of Economic Growth, 3(4): 313-335.
30. Dosi, G. 1988. Sources, procedure and microeconomic effects of innovation. Journal of Economic Literature, 26(3): 1120-1171.
31. Dosi, G., Giannetti, G., & Toninelli, P. A. 1992. Technology and enterprise in a historical perspective. Oxford: Oxford University Press.
32. Fleming, L. 2001. Recombinant uncertainty in technological search. Management Science, 47(1): 117-132.
33. Fombrun, C., & Shanley, M. 1990. What's in a name? Reputation building and corporate strategy. Academy of Management Journal, 33(2): 233-258.
34. Freeman, C. 1994. Technological revolutions and catching-up: ITC and NICs. In J. Fagerberg, B. Verspagen & N. von Tunzelman (Eds.). Dynamics of technology, trade and growth. Cheltenham: Edward Elgar.
35. Froot, K. A., Scharfstein, D. S., & Stein, J. C. 1994. A framework for risk management. Harvard Business Review, 72(6): 91-103.
36. Fung, M. K., & Chow, W. W. 2003. Identification of technological structures using patent statistics. Economics of Innovation and New Technology, 12(4): 293-313.
37. Galunic, D. C., & Rodan, S. 1998. Resource recombination in the firm: Knowledge structures and the potential for Schumpeterian innovation. Strategic Management Journal, 19(12): 1193-1201.
38. Garcia-Vega, M. 2006. Does technology diversification promote innovation? An empirical analysis for European firms. Research Policy, 35(2): 230-246.
39. Geroski, P. 1994. Market structure, corporate performance and innovation activity. Oxford: Clarendon.
40. Grandstrand, O., & Oskarsson, C. 1994. Technology diversification in multi-tech corporations. IEEE Transactions on Engineering Management, 41(4): 355-364.
41. Greene, W. H. 1997. Econometric analysis. New York: Macmillan.
42. Griliches, Z. 1979. Issues in assessing the contribution of R&D to productivity growth. Bell Journal of Economics, 10(1): 92-116.
43. Griliches, Z. 1992. The search for R&D spillovers. Scandinavian Journal of Economics, 94(S): 29-47.
44. Gu, M., & Tse, E. 2010. Building innovative organizations in China: The "execution+" organization. Asia Pacific Journal of Management, 27(1): 25-53.
45. Gu, S. 1999. China's industrial technology: Market reform and organisational change. New York: Routledge.
46. Guan, J. C., & Ma, N. 2003. Innovative capability and export performance of Chinese firms. Technovation, 23(9): 737-747.
47. Guan, J. C., Mok, C. K., Yam, C. M., Chin, K. S., & Pun, K. F. 2006. Technology transfer and innovation performance: Evidence from Chinese firms. Technology Forecasting and Social Change, 73: 666-678.
48. Guan, J. C., Yam, R. C. M., Tang, E. P. Y., & Lau, A. K. W. 2009. Innovation strategy and performance during economic transition: Evidences in Beijing, China. Research Policy, 38: 802-812.
49. Halaby, C. N. 2004. Panel models in sociological research: Theory into practice. Annual Review of Sociology, 30: 507-544.
50. Hall, B. 2002. A note on the bias in the Herfindahl based on count data. In A. Jaffe & M. Trajtenberg (Eds.). Patents, citations, and innovation. Cambridge: MIT Press.
51. Hamel, G., & Prahalad, C. K. 1994. Competing for the future. Boston: Harvard Business School.
52. Hargadon, A., & Sutton, R. I. 1997. Technology brokering and innovation in a product development firm. Administrative Science Quarterly, 42(4): 716-749.
53. Hausman, J. A. 1978. Specification tests in econometrics. Econometrica, 46(6): 1251-1272.
54. Helfat, C. E. 1997. Know-how and asset complementarity and dynamic capability accumulation: The case of R&D. Strategic Management Journal, 18(5): 339-360.
55. Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M. 2000. Strategy in emerging economies. Academy of Management Journal, 43(3): 249-267.
56. Hsiao, C. 1986. Analysis of panel data. New York: Cambridge University Press.
57. Hu, A. G., & Jefferson, G. H. 2004. Returns to research and development in Chinese industry: Evidence from state-owned enterprises in Beijing. China Economic Review, 15: 86-107.
58. Hu, A. G., & Jefferson, G. H. 2009. A great wall of patents: What is behind China's recent patent explosion?. Journal of Development Economics, 90: 57-68.
59. Jaffe, A. B. 1986. Technological opportunity and spillovers of R&D: Evidence from firms' patents, profits and market value. American Economic Review, 76(5): 984-1001.
60. Jaffe, A. B. 1998. The importance of spillovers in the policy mission of the advanced technology program. Journal of Technology Transfer, 23(2): 11-19.
61. Kamien, M. I., Muller, E., & Zang, I. 1992. Research joint ventures and R&D cartels. American Economic Review, 82(5): 1293-1306.
62. Katila, R., & Ahuja, G. 2002. Something old, something new: A longitudinal study of search behaviour and new product introduction. Academy of Management Journal, 45(6): 1183-1194.
63. Katz, R., & Allen, T. J. 1982. Investigating the Not Invented Here (NIH) syndrome: A look at the performance, tenure, and communication patterns of 50 R&D project groups. R&D Management, 12(1): 7-20.
64. Kim, J.-I. 2002. Total factor productivity growth in East Asia: Implications for the future. Asian Economic Papers, 1(2): 50-70.
65. Kim, L., & Nelson, R. R. 2000. Technology, learning and innovation: Experiences of newly industrializing economies. New York: Cambridge University Press.
66. Kim, S. R. 1998. The Korean system of innovation and the semiconductor industry: A governance perspective. Industrial and Corporate Change, 7(2): 275-309.
67. Kim, T. K., & Chang, S. M. 2005. The effects of patents on productivity in Korean manufacturing firms. Korean Economic Review, 53(3): 183-209 (in Korean).
68. Kotabe, M., Dunlap-Hinkler, D., Parente, R., & Mishra, H. A. 2007. Determinants of cross-national knowledge transfer and its effect on firm innovation. Journal of International Business Studies, 38(2): 259-282.
69. Lazonick, W. 2003. The theory of the market economy and the social foundations of the innovative enterprise. Economic and Industrial Democracy, 24(1): 9-44.
70. Leonard-Barton, D. 1992. Core capabilities and core rigidities: A paradox in new product development. Strategic Management Journal, 13(S1): 111-125.
71. Leonard-Barton, D. 1995. Wellsprings of knowledge: Building and sustaining the sources of innovation. Boston: Harvard Business School Press.
72. Lerner, J. 1994. The important of patent scope: An empirical analysis. Rand Journal of Economics, 25: 319-333.
73. Leung, K., Chen, Z., Zhou, F., & Lim, K. 2011. The role of relational orientation as measured by face and renqing in innovative behavior in China: An indigenous approach. Asia Pacific Journal of Management. doi: 10. 1007/s10490-011-9277-1.
74. Li, H., & Atuahene-Gima, K. 2001. Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44: 1123-1134.
75. Li, H., & Atuahene-Gima, K. 2002. The adoption of agency business activity, product innovation, and performance in Chinese technology ventures. Strategic Management Journal, 23(6): 469-490.
76. Li, J., & Zhou, C. H. 2008. Dual-edged tools of trade: How international joint ventures help and hinder capability building of Chinese firms. Journal of World Business, 43: 463-474.
77. Liu, H., Ding, X., Guo, H., & Luo, J. 2012. How does slack affect product innovation in high-tech Chinese firms: The contingent value of entrepreneurial orientation. Asia Pacific Journal of Management. doi: 10. 1007/s10490-012-9309-5.
78. Liu, X., & White, S. 2001. Comparing innovation systems: A framework and application to China's transitional context. Research Policy, 30: 1091-1114.
79. Malerba, F., & Orsenigo, L. 1997. Technological regimes and sectoral patterns of innovative activities. Industrial and Corporate Change, 6(1): 83-117.
80. March, J. G. 1991. Exploration and exploitation in organizational learning. Organization Science, 2(1): 71-87.
81. McGrath, R. G., & Nerkar, A. 2004. Real options reasoning and a new look at the investment strategies of pharmaceutical firms. Strategic Management Journal, 25(1): 1-21.
82. Michie, J. 1998. Introduction: The internationalisation of the innovation process. International Journal of the Economics of Business, 5(3): 261-277.
83. Miller, D. J. 2006. Technological diversity, related diversification and firm performance. Strategic Management Journal, 27(7): 601-619.
84. Molero, J., & Garcia, A. 2008. The innovative activity of foreign subsidiaries in the Spanish Innovation System: An evaluation of their impact from a sectoral taxonomy approach. Technovation, 28: 739-757.
85. Mu, Q. & Lee, K. 2005. Knowledge diffusion, market segmentation and technological catch up: The case of the telecommunication industry in China. Research Policy, 34(6): 759-783.
86. Narula, R., & Hagedoorn, J. 1999. Innovating through strategic alliances: Moving towards international partnerships and contractual agreements. Technovation, 19: 283-294.
87. Nelson, R. 2004. The market economy, and the scientific commons. Research Policy, 33(3): 455-471.
88. Nelson, R. R., & Winter, S. 1982. An evolutionary theory of economic change. Cambridge: Harvard University Press.
89. O'Sullivan, M. 2000. The innovative enterprise and corporate governance. Cambridge Journal of Economics, 24(4): 393-416.
90. Pakes, A., & Griliches, Z. 1984. Patents and R&D at the firm level: A first look. In Z. Griliches (Ed.). R&D, patents and productivity. Chicago: University of Chicago Press.
91. Pan, Y., Song, X., Goldschmidt, A., & French, W. A. 2010. A cross cultural investigation of work values among young executives in China and the USA. Cross Cultural Management: An International Journal, 17: 283-298.
92. Park, J. Y. 1990. Testing for unit roots and cointegration by variable addition. Advances in Econometrics, 8: 107-133.
93. Park, B. I., & Ghauri, P. N. 2011. Key factors affecting acquisition of technological capabilities from foreign acquiring firms by small and medium sized local firms. Journal of World Business, 46: 116-125.
94. Redding, S. 2002. Path dependence, endogenous innovation and growth. International Economic Review, 43(4): 1215-1249.
95. Romer, P. 1990. Endogenous technological change. Journal of Political Economy, 98(5): 71-102.
96. Rongping, M., & Wan, Q. 2008. The development of science and technology in China: A comparison with India and the United States. Technology in Society, 30: 319-329.
97. Saiki, T., Akano, Y., Watanabe, C., & Tou, Y. 2006. A new dimension of potential resources in innovation: A wider scope of patent claims can lead to new functionality development. Technovation, 26: 796-806.
98. Sakakibara, M., & Cho, D. 2002. Cooperative R&D in Japan and Korea: A comparison of industrial policy. Research Policy, 31(5): 673-692.
99. Schumpeter, J. A. 1934. Entrepreneurship as innovation. In R. Swedberg (Ed.). Entrepreneurship-The social science view: 51-75. Oxford: Oxford University Press.
100. Schumpeter, J. A. 1942. Capitalism, socialism and democracy. New York: Harper and Brothers.
101. Shin, J., & Jalajas, D. 2010. Technological relatedness, boundary-spanning combination of knowledge and the impact of innovation: Evidence of an inverted-U relationship. Journal of High Technology Management Research, 21: 87-96.
102. Song, M., Droge, C., Hanvanich, S., & Calantone, R. 2005. Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts. Strategic Management Journal, 26: 259-276.
103. Stuart, T. E., & Podolny, J. M. 1996. Local search and the evolution of technological capabilities. Strategic Management Journal, 17(S1): 21-38.
104. Sundbo, J. 1998. The theory of innovation: Entrepreneurs, technology and strategy. Cheltenham, UK: Edward Elgar.
105. Suzuki, J., & Kodama, F. 2004. Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms. Research Policy, 33(3): 531-549.
106. Teece, D. J. 1988. Technological change and the nature of the firm. In G. Dosi, C. Freeman, R. Nelson, G. Silverberg, & L. Soete (Eds.). Technical change and economic theory: 256-281. New York: Pinter Publishers.
107. Tegarden, L. F., Hatfield, D., & Echols, A. 1999. Doomed from the start: What is the value of selecting a future dominant design?. Strategic Management Journal, 20(6): 495-518.
108. van den Bosch, F. A. J., Volberda, H. W., & de Boer, M. 1999. Coevolution of firm absorptive capacity and knowledge environment: Organizational forms and combinative capabilities. Organization Science, 10: 551-568.
109. van der Eerden, C., & Saelens, F. H. 1991. The use of science and technology indicators in strategic planning. Long Range Planning, 24(3): 18-25.
110. Vermeulen, F., & Barkema, H. 2002. Pace, rhythm, and scope: process dependence in building a profitable multinational corporation. Strategic Management Journal, 23: 637-653.
111. von Hippel, E. 1998. Economics of product development by users: The impact of sticky local information. Management Science, 44(5): 629-644.
112. Watanabe, C., Matsumoto, K., & Hur, J. Y. 2004. Technological diversification and assimilation of spillover technology: Canon's scenario for sustainable growth. Technological Forecasting and Social Change, 71(9): 941-959.
113. West, J., & Iansiti, M. 2003. Experience, experimentation and the accumulation of knowledge: The evolution of R&D in the semiconductor industry. Research Policy, 32(5): 809-825.
114. Whetten, D. A. 2009. An examination of the interface between context and theory applied to the study of Chinese organizations. Management and Organization Review, 5(1): 29-55.
115. Wright, M., Filatotchev, I., Hoskisson, R. E., & Peng, M. W. 2005. Guest editors' introduction: Strategy research in emerging economies: Challenging the conventional wisdom. Journal of Management Studies, 42(1): 1-33.
116. Yam, R. C. M., Guan, J. C., Pun, K. F., & Tang, E. P. Y. 2004. An audit of technological innovation capabilities in Chinese firms: Some empirical findings in Beijing, China. Research Policy, 33(8): 1123-1140.
117. Yang, D., & Clarke, P. 2005. Globalisation and intellectual property in China. Technovation, 25(5): 545-555.
118. Yang, J., Liu, H., Gao, S., & Li, Y. 2012. Technological innovation of firms in China: Past, present, and future. Asia Pacific Journal of Management, 29(3): 819-840.
119. Yang, Q., & Jiang, C. X. 2007. Location advantages and subsidiaries' R&D activities in emerging economies: Exploring the effect of employee mobility. Asia Pacific Journal of Management, 24(3): 341-358.
120. Zachariadis, M. 2003. R&D, innovation and technological progress: A test of the Schumpeterian framework without scale effects. Canadian Journal of Economics, 36(3): 566-586.
121. Zachariadis, M. 2004. R&D-induced growth in the OECD?. Review of Development Economics, 8(3): 423-439.
122. Zhang, Y., & Li, H. 2010. Innovation search of new ventures in a technology cluster: The role of ties with service intermediaries. Strategic Management Journal, 31: 88-109.
123. Zhang, Y., Li, H., & Schoonhoven, C. B. 2009. Intercommunity relationships and community growth in China's high technology industries 1988-2000. Strategic Management Journal, 30: 163-183.
124. Zhou, K. Z. 2006. Innovation, imitation, and new product performance: The case of China. Industrial Marketing Management, 35: 394-402.