Dynamic competences and technological innovation in Chinese enterprises

Abstract

The rapid development of technology is viewed as a key determinant of success in a firm. Technology innovation is regarded as a tool for strengthening the competitiveness of a firm or an industry. This paper develops a model of technology innovation. We hypothesize that technological innovation capabilities are a function of a firm's technology competence, top management support, information source and strategic alliances. These relationships are empirically tested using the date of 160 Chinese firms acquired by interviews and surveys. The results indicate some important implications for the managers. First, the technology competence is positively associated with the level of innovation. In addition, managers need to pay attention to the information source, which influence the speed of technology innovation. Secondly, the prior technology and management experience of CEO and the attitude to innovation will influence the development the technology of a firm. Lastly, from the results we find the number of strategic alliances has no significant relationship with technology innovation. It is to say, managers need to consider the best number of technological copartner. Furthermore, we conclude the implications of this research and discuss the limitations of the study and future research.