Resources, State Ownership and Innovation Capability: Evidence from Chinese Automakers

15 Pages Posted: 5 May 2020

See all articles by Liwen Wang

Liwen Wang

Shenzhen University

Lu Jin

Tongji University

David Banister

University of Oxford

Date Written: June 2019

Abstract

Promoting innovation has been a major task for both business practitioners and governments in emerging markets. Based on the resource‐based view, this study examines the contributing factors of firms' innovation capability and the contingent role of state ownership. Utilizing data on 102 Chinese automobile firms, we found that financial resources, R&D human capital, innovation leadership, collaborative culture, and government support positively relate to firms' innovation capability. Moreover, the firm's ownership type serves as a boundary condition for the resource–capability relationship. The significance of different resources in developing innovation capability vary for firms with different ownership types. In particular, government support and R&D human capital have stronger effects in promoting non‐state‐owned enterprises' innovation capability. From a practical standpoint, developing innovation capability should consider the critical role of ownership. Specifically, while state‐owned enterprises can capitalize on organizational and financial resources to enhance innovation capability, it is also important for them to transform bureaucratized systems into more market‐orientated ones and facilitate the effective utilization of R&D human capital and government support.

Suggested Citation

Wang, Liwen and Jin, Lu and Banister, David, Resources, State Ownership and Innovation Capability: Evidence from Chinese Automakers (June 2019). Creativity and Innovation Management, Vol. 28, Issue 2, pp. 203-217, 2019, Available at SSRN: https://ssrn.com/abstract=3591349 or http://dx.doi.org/10.1111/caim.12305

Liwen Wang (Contact Author)

Shenzhen University

3688 Nanhai Road, Nanshan District
Shenzhen, Guangdong 518060
China

Lu Jin

Tongji University

David Banister

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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