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Adoptive Management Innovation pp 141–178Cite as

How Do Dynamic Capabilities Drive Adoptive Management Innovation?

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Abstract

Management innovation facilitates changes including technical innovation thus improving organizational performance; Chinese firms typically adopt these management innovations. Building on previous research of how and why management innovation occurs, this chapter measures the influence of four dynamic capabilities on four stages of the innovation process. This chapter surveys 264 Chinese firms and analyzes results through PLS-SEM. The findings indicate that relational capability facilitates sensing capability, absorptive capacity, and integrative capability. Further, all of these dynamic capabilities affect stages of the adoptive management innovation process; from initiation through to implementation. As innovation results can be intangible and lagging, and consequently difficult to measure, the method offers managers an alternative by monitoring the effects of different capabilities at each stage of the adoptive management innovation process.

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Notes

  1. 1.

    Case sources: Chinese Management Awards (2006) by PKU Business Review, http://www.haier.net/cn, and Lin 2009, 91:41–49. Haier Global (Haier) was founded in 1984 in Qingdao, in China. Through its entrepreneurial and innovative spirit, Haier has transformed itself from an insolvent collectively-owned factory on the brink of bankruptcy into the number one global home appliance brand in the last 30 years. Haier is known for disruptive innovation in its product solutions and management model, e.g. the OEC management control system, unique performance management systems, the market-chain-based business process reengineering system and Win-win Model of Individual-Goal Combination. In particular, Haier’s restructuring effort on the market-chain-based business process reengineering system which began in late 1998 has taken it from a nearly bankrupt factory to a company with global revenue of RMB180.3 billion (USD 29.5 billion) in 2013.

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    Haifen Lin

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Lin, H. (2018). How Do Dynamic Capabilities Drive Adoptive Management Innovation?. In: Adoptive Management Innovation. Springer, Singapore. https://doi.org/10.1007/978-981-10-7712-8_6

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