Asian Management

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Product Innovation Strategy and the Performance of New Technology Ventures in China

Author(s): Haiyang Li and Kwaku Atuahene-Gima

Source: The Academy of Management Journal, Vol. 44, No. 6 (Dec., 2001), pp. 1123-1134

Technology in China has proven on the product innovation, which shows a critical strategy for them to pursue to new ventures. They have also proven on an eight-year basis in which, has been ongoing and inconclusive. Some studies have shown that the innovation of products from Technology in china may have a negative relationship with the venture performance. Nevertheless, it was also found that empirical results of prior studies have been mixed, with over two-thirds of the studies finding a positive relationship between product innovation strategy and firm performance, and the rest finding a negative relationship or none at all. This is very contradicting as because, most studies have not examined factors that may moderate the strength of the relationship between product innovation strategy and firm performance.

Yet, environmental issues and external forces play an important role that shows stresses that affects the resource dependence to the theory for which companies have on the organization to fulfill the marketplace. This explains that not just companies adopt product innovation strategies with technology, it also shows that such strategy affects on performance mat be contingent with the environment and other firm strategies. This is because; there is a contingent relationship between product innovation strategy and new technology venture performance in China. Hence, it is shown that institution does support the environmental turbulence, which help to enhance the effectiveness of the companies’ product innovation strategy. For China, the transition economy and the new ventures’ which has limited resources from the government sectors who plays a vital role in enhancing the effectiveness of new technology ventures’ product...