ACCUMULATION OF TECHNOLOGICAL INNOVATION CAPABILITY AND COMPETITIVE PERFORMANCE: A QUANTITATIVE STUDY IN CHINESE ELECTRONIC INFORMATION INDUSTRY

This paper tries to contribute to the emerging research stream on technology creation in China. We investigated whether technology strategies, expressed in terms of different technological innovation capabilities (TICs) have impact on competitive performance of the firms. The research is based on a sample of 215 companies in Chinese electronic information industry. The three sets of TICs — investment, production, and linkages are inspired from the framework of Lall [1992]. We then analyze the impact of these three sets of TICs on firm competitive performance along three distinct lines: innovation performance, sales performance, and product competitiveness. Data reveals a significant positive relationship between the accumulations of the firm's TICs and its competitive performance. However, the results may differ with different technology strategies and different performance indicators. Finally, managerial implications are discussed and a brief conclusion is presented.