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Enabling cost innovation by non-traditional organizational processes: The case of Chinese firms

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  • Wan, Feng
  • Williamson, Peter
  • Yin, Eden

Abstract

Cost innovation has emerged as a new pattern of innovation in recent years. The extant literature has studied the preconditions for cost innovation to arise, including the availability of low-cost talent at all skill levels, state assets and intellectual property at a discount, management autonomy, and strong personal incentives to create value. Much less attention has been paid to the role of organizational processes. In this research, based on a set of Chinese firms, we investigate how non-traditional organizational processes can foster cost innovation. We find that the adoption of new or unconventional organizational processes facilitates the realization of various kinds of cost innovation. Specifically, searching innovation ideas using customer-oriented processes, selecting by pragmatic decision making, and implementing through flexible product development processes, all appear to underpin and facilitate cost innovation in our sample of firms. These findings have important implications for firms wishing to fuel cost innovation.

Suggested Citation

  • Wan, Feng & Williamson, Peter & Yin, Eden, 2019. "Enabling cost innovation by non-traditional organizational processes: The case of Chinese firms," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 352-361.
    • Handle: RePEc:eee:tefoso:v:139:y:2019:i:c:p:352-361
    DOI: 10.1016/j.techfore.2018.12.003
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    References listed on IDEAS

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    4. Krammer, Sorin & Jimenez, Alfredo, 2019. "Do political connections matter for firm innovation? Evidence from emerging markets in Central Asia and Eastern Europe," MPRA Paper 94942, University Library of Munich, Germany.
    5. Wan, Feng & Williamson, Peter & Pandit, Naresh R., 2020. "MNE liability of foreignness versus local firm-specific advantages: The case of the Chinese management software industry," International Business Review, Elsevier, vol. 29(1).
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