Abstract

Purpose: On the background of innovation-driven growth strategy of the Chinese government, this study aims to explore the impact of the knowledge base on innovation-driven growth of a firm, which is moderated by organizational character.Design/methodology/approach: Based on the data of 965 Chinese listed companies, some hypotheses were tested using the method of hierarchical regression analysis.Findings: Organizational growth relies on both technological and business model innovations and their interactive effect. Knowledge base, both breadth and depth, makes a positive impact on the innovation-driven growth of an enterprise. In the impacting mechanism, an explicit organizational character not only has direct positive effects on business model innovation, it also strengthens the effect of knowledge breadth on business model innovation. On the contrary, an implicit organizational character is not significantly related to innovation.Research limitations/implications: In order to achieve growth, enterprises are suggested to adopt such dual innovation strategy, led by technological innovation and supplemented with business model innovation, which is supported by the integrated management of intangible resources, deep and broad knowledge, and explicit organizational character.Originality/value: A new theoretical framework of organizational innovation-driven growth was proposed. The realization paths of innovation-driven growth were explored. The idea of collaborative governance between the knowledge base and organizational character was raised.

Highlights

  • In the past three decades, China has developed from a lagging to an emerging economy (Wang et al, 2020)

  • We proposed a new framework for explaining the mechanism of innovation-driven growth of the firm

  • Our contribution mainly reflects in the development of new theoretical thoughts, such as collaborative governance between the knowledge base and organizational character, and technological and business model innovations based on empirical analyses

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Summary

Introduction

In the past three decades, China has developed from a lagging to an emerging economy (Wang et al, 2020). Nowadays, when bonuses brought by the reform and opening-up policy and population increase are fading away, the Chinese government is eager to seek a new engine for economic growth. Under such circumstances, following the trend of global economic development, Knowledge, Character, and Firm Innovation-Driven Growth the Chinese government proposed the national strategy of innovation-driven growth (Yuan et al, 2018). The exogenous growth path, which focuses on the creation of new business models through integration and utilization of external resources, has been widely introduced in Chinese emerging enterprises for the realization of organizational performance and achievement of competitive advantage (Li and Yu, 2018; An et al, 2021). Because of the practical examination mentioned above, more academic explorations are urgently required to provide evidence for theoretical development

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