Study, Based On The Corporate Culture Of Innovation In Product And Process Innovation

Globalization and the new economy have made many firms aware that innovation is the way to gain constant competitiveness. As China develops quickly, more and more firms come to the conclusion that a healthy innovation culture can bring sustainable profit to them and help build up competitive advantages.Innovation activities are mainly divided into two types, product innovation and process innovation. A company with the two kinds of innovation being well managed will gain better overall innovation outcome. Most of the existing literatures examine the corporate innovation culture as a whole. No one has compared in an analytical way the difference between the innovation culture that fosters product innovation and the other fostering process innovation. The aim of this paper is to bridge the gap, namely to check whether these two kinds of innovation cultures are different from each other to a certain extent.The author first proposes two key concepts, product innovation culture and process innovation culture. Then, on the basis of literature review and field investigations, the author proposes a basic model of innovation culture that contains five dimensions. The author uses the model to analyze the difference between the two kinds of innovation cultures. By questionnaire investigation and face-to-face interview in 33 high-tech companies and quantitative analysis of the results, the author concludes that the two kinds of innovation are significantly different in terms of autonomy, openness, teamwork, leadership and career development. Lastly, this paper examined the relationship between traditional Chinese culture and modern innovation culture and provided useful advice for building innovation culture.At the conclusion part, this paper discusses shortage of the research and suggests that some further research can be done on innovation culture.