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Institutional influence, cognition and competence of top managers and innovative firms The case of Chinese power equipment firms

Institutional influence, cognition and competence of top managers and innovative firms The case... Purpose – This paper aims to explore the relationship between the role of entrepreneurs and the innovation investment propensity of Chinese firms. This study is expected to enhance our understanding about the competence building of top management team for innovative development. Design/methodology/approach – The analytical framework draws upon the recent theoretical progress about innovative firms, cognition and competence building of top managers. A horizontal data comparison and four longitudinal case studies of representative firms in the Chinese power equipment industry are implemented. Findings – The cognitive backgrounds of top managers, which have a significant role in directing strategic resource allocation, are found to be influenced by institutional environments. Because the institutional environments which are under the Chinese transition impact different groups of firms in different ways, the relevant practices of these firms lead to dissimilar competence building of top managers. Originality/value – This paper establishes a nexus of “institutional influence–cognition–resource allocation”. Such a nexus highlights the role of cognition of top managers in influencing the strategy‐making of firms. So it helps in explaining the conditions for competence building in firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Chinese Management Studies Emerald Publishing

Institutional influence, cognition and competence of top managers and innovative firms The case of Chinese power equipment firms

Kaidong Feng
Chinese Management Studies , Volume 8 (1): 25 – Apr 1, 2014
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25 pages

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References (62)

Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-614X
DOI
10.1108/CMS-07-2013-0125
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to explore the relationship between the role of entrepreneurs and the innovation investment propensity of Chinese firms. This study is expected to enhance our understanding about the competence building of top management team for innovative development. Design/methodology/approach – The analytical framework draws upon the recent theoretical progress about innovative firms, cognition and competence building of top managers. A horizontal data comparison and four longitudinal case studies of representative firms in the Chinese power equipment industry are implemented. Findings – The cognitive backgrounds of top managers, which have a significant role in directing strategic resource allocation, are found to be influenced by institutional environments. Because the institutional environments which are under the Chinese transition impact different groups of firms in different ways, the relevant practices of these firms lead to dissimilar competence building of top managers. Originality/value – This paper establishes a nexus of “institutional influence–cognition–resource allocation”. Such a nexus highlights the role of cognition of top managers in influencing the strategy‐making of firms. So it helps in explaining the conditions for competence building in firms.

Journal

Chinese Management Studies – Emerald Publishing

Published: Apr 1, 2014

Keywords: Cognition; Institutional environment; Competence building; Top manager

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