Interactive effects of external knowledge sources and internal resources on the innovation capability of Chinese manufacturers

Zhiqiang Wang (First Author), Qiang Wang (Participant Author), Xiande Zhao (Participant Author), Marjorie Lyles (Participant Author), Guilong Zhu (Participant Author)

Research output: Contribution to journalJournal

Abstract

Purpose Chinese firms were operating within a closed economic environment before the “opening up” in the late 1970s, but it has only been in the late 1990s that China has recognized the importance of innovation. The Chinese government has attempted to rectify this liability by providing funding to assist Chinese firms in developing innovation capability by increasing R&D collaborations and employing external experts. The purpose of this paper is to study the innovation of Chinese firms by examining how internal and external resources interactively impact the innovation capability. Design/methodology/approach Panel data collected from Chinese manufacturers are used to test the hypothesized relationships. Findings The results have shown that the interplay between internal and external resources exhibits differential patterns of impact on innovation capability. The authors discover different moderating patterns of the two types of external resources: visiting experts are helpful in enhancing the effects of internal human resources, while R&D collaborations are useful in exploiting internal financial and physical resources, even when the main effect of financial resources on innovation capability is not significant. Originality/value The study contributes to the literature by providing empirical evidences on the roles of absorbed external resources and knowledge to catalyze internal resources in building up innovation capability in an emerging economy.
Original languageEnglish
Pages (from-to)1617-1635
JournalIndustrial Management and Data Systems
Volume116
Issue number8
DOIs
Publication statusPublished - 2016

Corresponding author email

qiangwang@xjtu.edu.cn

Project name

中国企业供应链合作创新行为研究;;网络环境下的服务创新与服务设计研究;;我国产学研合作创新理论与政策研究

Project sponsor

国家自然科学基金

Project No.

71420107024;;71090403;;71233003

Keywords

  • ABSORPTIVE-CAPACITY
  • Absorptive capacity
  • China
  • EMERGING ECONOMIES
  • FIRM-LEVEL
  • INDUSTRY
  • Innovation capability
  • MANAGEMENT
  • MEDIATING ROLE
  • MODERATING ROLE
  • Moderation
  • NETWORK
  • PERFORMANCE
  • TECHNOLOGY

Indexed by

  • SCIE
  • Scopus

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