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R&D team governance and R&D performance: Empirical evidence from Chinese software enterprises

Zhang Yunsheng (College of Business Administration, Hunan University, Changsha, China)
Zeng Deming (College of Business Administration, Hunan University, Changsha, China)
Zhang Lifei (College of Business Administration, Hunan University, Changsha, China)
Lucy Yang Lu (Newcastle University Business School, Newcastle University, Newcastle upon Tyne, UK)

Journal of Technology Management in China

ISSN: 1746-8779

Article publication date: 20 February 2007

Abstract

Purpose

With the clarification of three effective methods (share holding, decision participation and promotion of technical grade) to govern R&D teams in software enterprises, the purpose of this paper is to provide an empirical investigation of the application of these methods in Chinese software enterprises.

Design/methodology/approach

The research is based on a quantitative approach with 34 items designed in the questionnaire to measure the indicators. All items were rated by respondents on a five‐point Likert‐type scale. In order to testify the validity of the three methods of R&D team governance, a correlation analysis and a linear regression were made to examine the relationship between these methods of R&D team governance and R&D performance.

Findings

The evidence shows that decision participation and promotion of technical grades are the two most effective methods to govern R&D teams in Chinese software enterprises, while share holding is not conducive to R&D performance. The share holding level of R&D staffs is fairly low; even “no share.” What is more important is that many software enterprises regard it as a welfare institution but not an incentive method. Therefore, the shareholding mechanism cannot enhance R&D performance. In addition, relevant regulations have not been established completely. There are many deficiencies in the process of intellectual property management of Chinese enterprises. These factors have hindered the effective performance of R&D staff.

Practical implications

The research findings emphasize the importance of governance of R&D teams in the Chinese software industry and highlight the critical issues that need to be addressed in order to enhance the performance of R&D staff.

Originality/value

The concept of R&D team governance is examined and elaborated within the context of China, which points to the need of developing new direction of R&D team management.

Keywords

Citation

Yunsheng, Z., Deming, Z., Lifei, Z. and Yang Lu, L. (2007), "R&D team governance and R&D performance: Empirical evidence from Chinese software enterprises", Journal of Technology Management in China, Vol. 2 No. 1, pp. 71-83. https://doi.org/10.1108/17468770710723631

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited