The standardization model of innovation: case of high-technology enterprises

Abstract

Purpose The purpose of this paper is to explore the core elements and their constitutive activities of innovation of high-technology enterprises (HTEs) in the context of China to embrace effective management processes for dealing with standards setting. Design/methodology/approach The basic methodology of the empirical investigation is a single case study of ZTE Corporation (ZTE), a leading Chinese manufacturer in the telecommunication industry. Interviews were conducted from November 2008 to July 2009 with ZTE’s managers and senior R&D employees, as well as with R&D personnel from ZTE’s partners. Interviews were carried out face to face or by emails and supplemented by telephone calls and online communications. Secondary data provide complementary information. Findings The key to innovation for HTEs pursuing dominant positions in high-technology industries is standardization-oriented innovation. To deal with special requirements raised by the peculiarities of standardization for HTEs’ innovation management, HTEs need to emphasize three core elements in innovation, i.e. strategic innovation planning, internal R&D practices and external co-operative innovation, and focus on their key component activities. Moreover, through the case study of ZTE, three enabling factors for standardization-oriented innovation – intellectual property rights (IPR) management, market focus and co-operation along industry chains – are identified. Originality/value This paper is an attempt to understand and configure key innovation activities within a standards setting. It proposes a model for innovation management of HTEs in the Chinese economy, with three critical elements and their key constitutive activities being highlighted and three enabling factors being identified.