The purpose of this paper is to focus on the influences of dynamic capability on breakthrough innovation and explores the essential mechanisms related to such influence. The impact of breakthrough innovation on organizational performance is also examined in conjunction with the manufacturing industry samples in China.
This paper follows an empirical design. Data are collected from a survey administered to manufacturing samples in China. Regression analysis is used to test the hypothesis.
Results show that the positive impact of breakthrough innovation on organization performance is verified. Technological breakthrough innovation affects both the organization’s financial performance and growth performance in a linear and positive way, while market breakthrough innovation affects organization performance positively with marginal increments.
This paper uses data of manufacturing industry of China, hence, an extended survey in depth and width is worthy of future investigation. In addition, more unique predisposing factors on breakthrough innovation should be considered in the context of China.
The research enriches the understanding of how the dynamic capability affects the enterprise’s breakthrough innovation, which helps entrepreneurs understand how to strategize to build dynamic capability during breakthrough innovation decisions and implementations.
Dynamic capability is uniquely viewed as a multi-dimensional concept from a perspective of modularity, while breakthrough innovation is composed of two constructs. It not only enriches the understanding of how dynamic capability affects breakthrough innovation but also discovers the non-linear impact of breakthrough innovation on enterprise’s organizational performance in the context of China’s manufacturing industry.
This study is supported by the China Social Science Foundation (19BGL045), and the author herewith shows appreciation for their support. I would like to thank anonymous reviewers for their thoughtful comments and suggestions. In addition, this manuscript is an original work, which has not been submitted to or published anywhere else. All authors have read and approved the paper and have met the criteria for authorship.
Wang, H. and Feng, J. (2019), "Influences of dynamic capability on breakthrough innovation: Evidence from China’s manufacturing industry", Chinese Management Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CMS-03-2019-0099Download as .RIS
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