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How China Enhances Its Innovation Capability: The Perception of Executives in International Joint Ventures
Author(s) -
Jasimuddin Sajjad M.,
Faulkner David O.,
Liu Li
Publication year - 2014
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.21563
Subject(s) - multinational corporation , china , government (linguistics) , business , joint (building) , foreign direct investment , process (computing) , industrial organization , marketing , perception , investment (military) , economics , politics , finance , political science , engineering , architectural engineering , linguistics , philosophy , computer science , law , macroeconomics , operating system , neuroscience , biology
China offers fertile ground for studying how business executives can understand the process of enhancing innovation capability in an environment where the government has a paramount role in creating innovation networks. Before Deng Xiaoping's economic reforms in the late 1970s and early 1980s, the Chinese government controlled every aspect of industrial production through a strict system of central planning. One of the main motivations for China's “Open Door” policy was to attract foreign direct investment through international joint ventures and to get access to Western technology. Twenty‐four interviews with executives from eight businesses involved in such ventures led to six propositions that present the main elements in the creation of Chinese innovation capability, and a flow diagram is used to highlight the key factors that influence these developments. With active government support, both local and foreign multinational firms can join research‐led universities to mutually enhance innovation capabilities in a Chinese setting. ©2014 Wiley Periodicals, Inc.