The Role of Employee Participation in Generating and Commercializing Innovations in China

Abstract

In this paper we are investigating the effect of different forms of employee participation on innovation generation and commercialization in China. To date, the concept of employee-driven innovation (EDI) finds very little recognition in China in research as well as in management practice. It seems to fundamentally contradict traditional values in Chinese culture. On the other hand, work realities change rapidly in China. Research suggests that EDI might be particularly relevant for innovations in skilled labour contexts. Based on a survey of 620 medium-sized and large companies in China we found clear indications that different forms of employee participation have a positive impact on innovation generation, but not commercialization, while the application of non-monetary incentives mediates a positive relationship of employee participation on both innovation stages. These findings underpin that EDI is also relevant for China.