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Top-down, bottom-up or outside-in? An examination of triadic mechanisms on firm innovation in Chinese firms

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  • Yu Zhou

    (Renmin University of China)

  • Guangjian Liu

    (Renmin University of China)

  • Xiaoxi Chang

    (China University of Political Science and Law)

  • Ying Hong

    (Fordham University)

Abstract

This paper examines the influence of the interaction of three sources of innovation, namely, top-down (bureaucratic structure), bottom-up (high-involvement HRM) and outside-in (outreaching network), on two stages of firm innovation, i.e. invention and commercialization. Using data from 620 large Chinese companies, we found that there was a synergy between the bureaucratic structure and a high-involvement HRM system in influencing firm innovation. Social networks were most effective in promoting firm innovation in the presence of a high-involvement HRM system. The bureaucratic structure inhibited social networks in contributing to firm innovation. Ideas for future research and practical implications are discussed.

Suggested Citation

  • Yu Zhou & Guangjian Liu & Xiaoxi Chang & Ying Hong, 2021. "Top-down, bottom-up or outside-in? An examination of triadic mechanisms on firm innovation in Chinese firms," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 131-162, February.
    • Handle: RePEc:pal:abaman:v:20:y:2021:i:1:d:10.1057_s41291-019-00085-z
    DOI: 10.1057/s41291-019-00085-z
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