Science Research Management ›› 2015, Vol. 36 ›› Issue (12): 65-74.

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The impact of organizational innovation on the performance of product imitation and innovation

Wang Fang, Zhao Lanxiang, JiaJia   

  1. Institute of Policy and Management, Chinese Academy of Sciences, Beijing 100190, China
  • Received:2015-01-18 Revised:2015-06-25 Online:2015-12-25 Published:2015-12-22

Abstract: In view of the importance of organizational innovation in improving firm performance, this paper explores the impact of organizational innovation on product imitation and product innovation for Chinese manufacturing firms using the multinomial treatment effect model (MTE). Latent transition analysis (LCA) is firstly adopted to investigate the classification of organizational innovation and its characteristics. The results demonstrate a 5-class mode of organizational innovation from low level to high level for sample firms. Middle to high level of organizational innovation (Type Ⅲ and Ⅳ) has significant impact on the intensity of product imitation, implying that knowledge innovation and R&D investment play an important role in facilitating product imitation. Only the highest level of organizational innovation (Type Ⅴ) shows a significant effect on the intensity of product innovation, demonstrating that the transition from imitation to product innovation requires a comprehensive improvement in organizational innovation. Hence, policies designed to stimulate indigenous innovation should address not only technological innovation per se, but also the comprehensive innovation.

Key words: organizational innovation, product innovation, product imitation, latent class analysis, multinomial treatment effect model

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