Meeting Contradictory Innovation Demands:A Conceptual Model for Symbolic-substantive Innovation Choice in a Transitional Economy
In this paper, we propose a conceptual framework for firms facing innovation decisions in response to institutional and market demands, especially in the context of a transitional economy like China. Relatively few researches in the literature cover on how Chinese firms can manage symbolic and substantive innovations ambidextrously, and our paper intends to make a contribution to this gap. Based on the innovation literature, our model suggests that firms have to prioritize between symbolic or institutionally based innovation and substantive-radical innovation under different interactive combinations of institutional and market pressures, which may at times contradictory to each other. The key to match the appropriate innovative response with the external demand lies in the accurate interpretation of the decision impact by the firm, and this managerial perception and the subsequent innovation orientation are in turn moderated by factors such as social capital accumulated with the external parties, the firm size as well as ownership type. Social capital is important as it helps firms to make better sense out of ambiguous policies through the managers interactions with significant stakeholders. Ownership style influences how managers interpret environmental turbulences as either opportunistic or unnecessary risky. Lastly, we argue that firms having the right size may have a better chance of striking a balance between organizational inertia against change and resource slack for innovation, as well as in mitigating external uncertainties.
Institutions Symbolic and Substantive Innovation Institutions Strategic Choice Transitional Economies China
Alfred Yu Stephen Ko
The Hong Kong Polytechnic University,Hong Kong,China The Hone Kong Polytechnic University,Hone Kong,China
国际会议
Academy of Innovation and Entrepreneurship 2008(创新与创业国际学术会议)
北京
英文
110-114
2008-03-01（万方平台首次上网日期，不代表论文的发表时间）