Management Faculty Publications

Document Type

Article

Abstract

In Chinese exporting, small and medium-sized companies (SMEs) need to be innovative to develop a competitive advantage. This research explored how these organizations can use two resources: 1) guanxi with customers, distributors, suppliers, and government officials; and 2) IT systems to enhance their innovation capabilities and new product performance. The moderating role of an organization’s proactiveness with respect to new product development is also examined. The resource-based view provides the theoretical support for the research. A conceptual model is developed and tested using survey data gathered from 210 Chinese SMEs in manufacturing industries that were analyzed using SmartPLS 2.0. Results show that IT systems are positively related to innovation capability. The relationship between guanxi and innovation capability is significant for firms that exhibit high levels of proactiveness but not when proactiveness is low.

Publication Date

9-2018

Publication Title

Journal of Business Research

Publisher

Elsevier

Available for download on Wednesday, September 01, 2021

Included in

Business Commons

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