Total Innovation Management Competence Of Firms

Innovation and competence of firms have always been the key research topics in economics and management area. In 1912, Joseph A. Schumpeter created The Innovation Theory by publishing The Theory of Economic development, and in 1959, E. T. Penrose proposed The Competence Theory of the Firm by publishing The Theory of the Growth of the Firm. The research in the past on The Innovation Theory of the Firm and The Competence Theory has attained a lot of accomplishments, which provide important academic basis for research in this paper. However, from the aspect of China practical situation, Chinese firms are faced with serious challenges in terms of innovation with the background of economy globalization, and many theories and practical problems concerning firm innovation management and competence building are urgently to be researched deeply and systemically by theory and demonstration study.A firm is the main body of innovation, and developing effective total innovation management of the firm is a key approach to enhancing national independent innovation competence as well as building innovative nation. Innovation management is a process, a dynamic process with interaction of strategy, technology, market and organization. Firm establishing routine is required for successful innovation management, and breaking old routine, continuously establishing a set of completely new routine is also required. One of the key issues for successful innovation management comes from an integrated method, not certain competence or unilateral management. In many companies, certain aspects of management competences in process of innovation have reached very high level, but such innovation finally ended with failure due to lacking of other aspects of management competences. Therefore, research on total innovation management competence for Chinese firms is urgently needed.Oriented by realistic problems in Chinese firms, and faced to electronic information firms, the research in this paper comprehensively uses different theories and methods, such as The Innovation Theory of the Firm and The Competence Theory of the Firm. With Structural Equation Modeling, we studied firm total innovation management competence by theoretical and empirical research, so as to establish theory frame of firm total innovation management competence. The issues in this...