Different choice of strategic innovation among companies in China market

Abstract

Purpose

The purpose of this paper is to test the difference among foreign and domestic cosmetics firms in terms of types of strategic innovations they chose in the Chinese market, and the difference between domestic large-sized cosmetics firms and cosmetics small- to medium-sized enterprises (SMEs) about types of strategic innovation they choose in the Chinese market.

Design/methodology/approach

The independent-sample t-test was used to compare foreign and domestic cosmetics firms and domestic SMEs and large-sized cosmetics firms.

Findings

Foreign and domestic cosmetics firms should not choose the same type of strategic innovations, and it also showed that Chinese domestic large-sized firms and SMEs should not choose the same types of strategic innovations.

Research limitations/implications

China is the exclusive place of focus. Only 19 types of strategic innovations were analyzed. There may be other variables that have not been addressed in the study.

Practical implications

Though other large-sized companies achieved considerable profitability or growth by using some types of strategic innovations, the same types may not contribute to the same profitability or growth for SMEs. Although foreign cosmetics companies had great growth and profitability in the Chinese market, domestic large-sized companies should not blindly follow them as their needs and situations are different.

Originality/value

From this t-test analysis, it is clear that foreign cosmetics firms and domestic cosmetics firms chose different types of strategic innovation in the Chinese market. Meanwhile, domestic large-sized cosmetics firms and SMEs chose different types of strategic innovation.

Citation

Yang, X. (2014), "Different choice of strategic innovation among companies in China market", Journal of Science and Technology Policy Management, Vol. 5 No. 2, pp. 106-121. https://doi.org/10.1108/JSTPM-02-2014-0006