The determinants of corporate growth: evidence from Chinese high technology firms

Abstract

Drawing on the economic growth and social cognitive theory, this paper investigates the effects of management strategies-based factors (knowledge management process competence and innovation capability) and dynamic capabilities-based factors (rewards system and marketing fit) on corporate growth in the Chinese high technology firms. The results show that the knowledge management process competence, innovation capability, and marketing fit exert significant effects on corporate growth. In particular, this study identifies a significant curvilinear relationship between innovation capability and corporate growth. The findings suggest that both management strategy-based and dynamic capabilities-based factors should be considered in achieving long term corporate growth in Chinese high technology firms. These results have important implications for researchers investigating the determinants of high technology firms’ growth performance in transitional economies as well as practitioners seeking to improve corporate growth. This paper concludes with a discussion of the implications and limitations of the research.