Abstract
As the backbone of national strategic development, Complex Product Systems (CoPS) have made great achievements in China, the world’s largest demand market and second largest economy. However, their further development is challenged by the dynamic environment, including the ongoing Sino-US trade friction, for example. The aim of this research is to investigate the influence of the dynamic external environment on CoPS innovation. Based on contingency theory, this study identifies and investigates the moderating effects of technological and market dynamism on the relationship between the integrator’s coordination and its technological innovation performance. Using survey data from 209 CoPS integrator enterprises in China, the findings show that (1) the positive effect of an integrator’s coordination on technological innovation performance is strengthened by technological dynamism, while (2) weakened by market dynamism. In addition, (3) the technological dynamism acts as a higher-order moderating role in inhibiting the negative moderating effect of market dynamism on the main effect in general. Furthermore, (4) an unexpected but inspiring finding shows that the integrator’s coordination facilitates innovation most when both the technology and market dimensions are highly dynamic. This study may indicate that managerial recognition may have significant influence on enterprise’s behavior.
Highlights
Since 2006, Complex Product Systems (CoPS), as the backbone of national strategic development [1,2], have been emphasized in China, the world’s largest demand market and second largest economy
Faced with the above environmental dynamism mainly from the technological and market dimensions, CoPS innovation in China experiences a much more dynamic and severe environment compared with other international economies
This study argues that these two sources of dynamism have different influencing logics and effects on coordinating activities and innovation in CoPS
Summary
Since 2006, Complex Product Systems (CoPS), as the backbone of national strategic development [1,2], have been emphasized in China, the world’s largest demand market and second largest economy. High-speed trains have been exported to many countries worldwide. It is under the highly dynamic environments both at home and abroad that China makes these achievements by persisting with rapid technology developments [3]. The internal sources are mainly from the market dimensions, such as supply-side reforms or economic structural adjustments, where the clients’ preferences change or insufficient demand will affect capital goods innovation and production on the upper side of the supply chain. Faced with the above environmental dynamism mainly from the technological and market dimensions, CoPS innovation in China experiences a much more dynamic and severe environment compared with other international economies
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