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Article
Publication date: 23 April 2018

Qifeng Zhao and Yongzhong Wang

The purpose of this paper is to investigate how the pay gap between the management and ordinary employees influence corporate technology innovation.

Abstract

Purpose

The purpose of this paper is to investigate how the pay gap between the management and ordinary employees influence corporate technology innovation.

Design/methodology/approach

This study built a tournament model based on inventor innovation and career promotion. In addition, the authors use IV-GMM estimation method to address the possible endogeneity issue in the regressions.

Findings

Based on the unbalanced panel data of patents and pay gap in 1,501 Chinese listed manufacturing firms during 2001-2015, this paper finds that the pay gap could lead inventor innovation and improve technology innovation. The pay gap could encourage corporate innovation significantly: 1 percent increase in pay gap may increase the number of patents by 2 percent in the next year. The pay gap between the management and ordinary employees facilitates corporate innovation via two possible channels. First, inventor innovation and career promotion. Inventors are selected into the management mainly based on their innovation output. The larger the pay gap, the more innovation incentives and patents would gain. Second, investment increase in technology innovation. The pay gap and more patents that inventors gain would increase the ratio of inventors promoted to the management, who tend to pour more resources into R&D activities and absorb more inventors to the management due to their sectionalism and R&D preference. The above two channels constitute a positive feedback mechanism among technology innovation, inventor promotion and increase in R&D investment.

Research limitations/implications

This paper highlights that pay gap between the management and ordinary employees is an important issue that could encourage corporate innovation. The conclusions imply that pay gap could encourage inventors to work hard and produce more patents, which could help them to enter into the management such as executives or directors.

Originality/value

This study contributes to the current literature by implying that pay gap could have positive effects on innovation through theoretical and empirical analysis. Also, this study finds that inventor promotion due to the pay gap is a critical channel to stimulate corporate technology innovation.

Details

China Finance Review International, vol. 9 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 16 June 2021

Zhengyi Zhang, Jun Jin, Ting Wen and Zan Chen

With the fierce competition in a knowledge economy, knowledge-intensive enterprises (KIEs) make technological progress in their catching-up processes through implementing product…

Abstract

Purpose

With the fierce competition in a knowledge economy, knowledge-intensive enterprises (KIEs) make technological progress in their catching-up processes through implementing product innovation and process innovation. In this study, the aim is to understand the determinants of enterprise innovation type in China's catch-up environment. Further, this paper intends to deal with two related questions. First, what effect does the internal knowledge base have on KIEs' technology innovation activities? Second, considering the technology gap and technology development speed, what are the different impacts of the knowledge base on the type of technology innovation activities?

Design/methodology/approach

This paper collected data from 212 KIEs in China through a two-stage questionnaire survey, combined with statistical data for research. The hypothesis was tested by regression analysis. Specifically, descriptive statistics and regression analysis are introduced to test the hypothetical relationship between the knowledge base and technology innovation. Meanwhile, multiple regression is used to test whether there is any difference in the influence of technology gap and technology development speed on enterprise knowledge base and technology innovation. Finally, the corresponding robustness tests are done.

Findings

This study finds that in a sample of Yangtze River Delta KIEs, firms' knowledge base influences innovation types. Specifically, the knowledge base width (KBW) and knowledge base depth (KBD) positively influence process innovation, and KBD positively affects product innovation. Regarding the effects of catch-up context factors on KIEs’ innovation choice, a wide technology gap tends to positively influence product innovation in industries with high levels of KBW. Moreover, when technology development speed is high, its potential positive influence on process innovation will be more significant for industries with deeper knowledge bases.

Originality/value

This paper fills the research gap that existing studies ignore the relationship between types of technology innovation and knowledge base dimensions, especially for KIEs. First, this paper deepens the understanding of the impact mechanism of KIEs' existing knowledge base on innovation activities; the unique use of resources by enterprises is the basis of enterprises' competitive advantage and will become enterprises' competitive advantage. Second, this study indicates that against different backdrops of technology gap and technology development speed, enterprises with different knowledge bases will adopt different types of technology innovation activities. Third, this paper shows that a wider technology gap provides broader innovation space, so the technology gap plays a pulling role in KBW and product innovation, thus pushing forward enterprises' technological catch-up.

Details

European Journal of Innovation Management, vol. 26 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 2 February 2015

Taotao Chen, Ronald W. McQuaid and Maktoba Omar

The purpose of this paper is to develop a double mechanism model to separate two foreign direct investment (FDI) intra-industry spillovers mechanisms: spillovers by FDI intensity…

Abstract

Purpose

The purpose of this paper is to develop a double mechanism model to separate two foreign direct investment (FDI) intra-industry spillovers mechanisms: spillovers by FDI intensity and by FDI efficiency. This paper seeks to illustrate the potential use of the double mechanism model rather than provide precise estimates of spillovers. The evidence on the links between technology and the nature, size and mechanisms of FDI spillovers effects in economically developing countries is mixed.

Design/methodology/approach

A model is developed and tested, in principle. Empirical testing was conducted in two steps. In the first step, the authors examined the effect of each influencing factor to FDI spillovers separately. To complete this step, the authors divided the whole sample industry into sub-groups and tested them with the double-mechanism using ordinary least squares regression. This study applies Chinese National Bureau of Statistics manufacturing industry level data, for the years 2000, 2001 and 2002, including the food industry, beverage industry, textile industry, textiles and garments, chemicals and chemical products industry, overall manufacturing equipment, special equipment, computer and other electronic equipment manufacturing industries.

Findings

The analysis suggests significant differences between types of spillovers: export orientation of domestic firms mainly influences FDI spillovers by intensity; the capability gap between local and foreign firms influences spillovers by efficiency; and the growth of local firms influences both types of spillovers. This paper develops existing models of FDI and suggests that disaggregating spillovers types may provide important theoretical and policy insights.

Originality/value

This study has found, first, that compared with the classic single mechanism model, the double mechanism model is more appropriate for testing FDI intra-industry spillovers, as it is able to separate spillovers by intensity and spillovers by efficiency, which are shown as two distinct mechanisms for FDI spillovers. This allows a deeper analysis into each mechanism and the identification of relevant influencing factors.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 8 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 1 August 2000

R.G. Lentz

Traces the trajectory of the digital divides by focusing on different areas of research that are competing to shape the public policy agenda. Posits that policy should focus at…

Abstract

Traces the trajectory of the digital divides by focusing on different areas of research that are competing to shape the public policy agenda. Posits that policy should focus at least as much on the context and content of technology use as it has this far on the increased distribution of computing resources.

Details

info, vol. 2 no. 4
Type: Research Article
ISSN: 1463-6697

Keywords

Article
Publication date: 1 February 2003

Bodo Lang and Mark Colgate

In a world of escalating competitiveness, information technology (IT), such as online banking, and relationship marketing are becoming increasingly important to marketers. This…

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Abstract

In a world of escalating competitiveness, information technology (IT), such as online banking, and relationship marketing are becoming increasingly important to marketers. This paper investigates the impact of IT in a relationship marketing context. In particular it focuses on how customers use a combination of IT channels to interact with their financial service provider and how this interaction affects the relationship quality between the customer and the financial service provider. This study provides empirical evidence that indicates that those customers who do not exhibit an “IT gap” have more positive perceptions of their relationship with their financial service provider. These findings suggest that firms that fail to provide channels that their customers seek and value will find it more difficult to forge strong relationships with their customers – a critical condition for success in many of today’s industries.

Details

International Journal of Bank Marketing, vol. 21 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 29 November 2018

Thanh Pham Thien Nguyen

Given some similarities in the banking industry and economic condition across Vietnam, China and India, the purpose of this paper is to estimate and compare the cost and revenue…

Abstract

Purpose

Given some similarities in the banking industry and economic condition across Vietnam, China and India, the purpose of this paper is to estimate and compare the cost and revenue efficiency of banks across these three countries over the period 1995–2011.

Design/methodology/approach

This study employs the meta-frontier of Battese et al. (2004) and O’Donnell et al. (2008) which envelops the three country-frontiers to measure the cost and revenue efficiency of banks in these three countries.

Findings

This study finds that Chinese banks adopt the most advanced cost-reducing and revenue-increasing technology when providing banking products to their customers, followed by Indian banks. Indian banks are as cost-efficient as Chinese banks, but more cost-efficient than Vietnamese banks. Indian banks are as revenue-efficient as Vietnamese banks, but less revenue-efficient than Chinese banks. Over the analysis period, banks in the three countries have employed the more advanced technology in reducing costs, and they have become more cost-efficient. Nonetheless, for revenue side, the improvement in revenue efficiency and adopted technology are observed only in Chinese banks. The main source of meta-cost and meta-revenue inefficiency of these banking systems stems from undertaking inferior technology rather than managerial ability. Results from comparison across bank types show that state-owned banks (SOBs) are more cost and revenue-efficient than privately owned banks, with Indian and Chinese SOBs being the most cost- and revenue-efficient, respectively.

Practical implications

To improve meta-cost efficiency, Chinese and Indian banks would constitute a relevant benchmark for Vietnamese banks, while to improve meta-revenue efficiency, Chinese banks would be considered as a relevant benchmark for Vietnamese and Indian banks.

Originality/value

This is the first study which utilizes meta-frontier to compare cost and revenue efficiency and technology across banks in Vietnam, China and India.

Details

Benchmarking: An International Journal, vol. 25 no. 9
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 16 June 2021

Kennedy Kumangkem Kubuga, Daniel Azerikatoa Ayoung and Stephen Bekoe

Nearly at the end of its lifespan, the Ghana ICT4AD policy is in a position for a holistic view, especially through the eyes of the intended beneficiaries. This paper aims to fill…

Abstract

Purpose

Nearly at the end of its lifespan, the Ghana ICT4AD policy is in a position for a holistic view, especially through the eyes of the intended beneficiaries. This paper aims to fill that gap. The paper measures the gap between what was intended and what has been realised and, based on that, makes recommendations for stakeholders.

Design/methodology/approach

The research used the design reality gap analysis approach to numerically examine the deviation or otherwise of the ideals of the Ghana ICT4AD policy from or to the reality on the ground. It required the breaking down of the problem into dimensions and subdimensions and involved interviewing office holders, academics, practitioners and students over a three-year period. The recommendations include a review of the policy before it expires and an explicit designation of an agency responsible for coordination, monitoring and evaluation of the various stages of the policy.

Findings

The chief finding is that Ghana’s ICT4AD policy might miss the targets totally, or might well be a partial failure unless action is taken to close the design–reality gaps identified by the research. As the policy is almost at the end of its lifespan, recommendations are even more useful when the recommended revision takes place.

Research limitations/implications

The major limitation of the is that it looks only at the implementation success or failure without a probe into the causal factors and/or the impact on society.

Practical implications

The policy runs full term at end 2022, with large gaps between the plans of the framers and the reality on the ground. An immediate revision of the policy is most recommended.

Originality/value

Besides this study, the authors have not come across any such comprehensive study of the Ghana ICT4AD policy, especially with the amount of data now available after two decades. There is a similarity with a Pakistani study, which has been acknowledged in this study, but the two works differ greatly in methodology, context and style.

Details

Digital Policy, Regulation and Governance, vol. 23 no. 2
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 6 April 2020

Gabriel Marcuzzo do Canto Cavalheiro, Mariana Brandao Cavalheiro and Sandra Mariano

This article is aimed at improving understanding of the possibilities and implications of using patents as a teaching instrument for universities in developing countries in order…

Abstract

Purpose

This article is aimed at improving understanding of the possibilities and implications of using patents as a teaching instrument for universities in developing countries in order to enable undergraduate business students to discuss critical issues associated with the commercialization of technological innovations.

Design/methodology/approach

This study is based on an explorative case of an experiential teaching exercise involving undergraduate students addressing the development of business plans addressing the commercialization of patents. In this way, we proposed the POSTE model to provide a pathway to knowledge creation by integrating entrepreneurial competences of entrepreneurship competences with existing practices.

Findings

Given the complex nature of the patenting process, the experiential exercise proposed by this study contributes to enhance IP commercialization capabilities of undergraduate students by simulating decision-making regarding market size, user requirements, product pricing, competitors, substitute products, time-to-market, product production arrangements and strategic use of the terms of a patent.

Research limitations/implications

One limitation of this research involves the impossibility of completely addressing the venture launch gap. Despite the realistic learning experience based on a real patent, as students do not own the intellectual property rights (IPRs) associated with the patents used in the course, it is not possible to implement the business models developed during the course.

Practical implications

Since patent documents are freely available and companies are increasingly dependent on intellectual property (IP) assets to remain competitive, our study provides evidence that patents can provide a rich source of information that can be used to simulate venture creations by taking into consideration economical, strategical, and legal skills needed to bridge the technology commercialization gap.

Social implications

Given the lack of courses addressing intellectual property in the wide majority of Brazilian undergraduate courses, the teaching experience described in this study contributes to raise the sense of urgency for the commercialization of patents among college students, as a means of turning technology into business.

Originality/value

Despite of the growing correlation between IP and competitiveness, teaching methods relying on IP data, such as patents, industrial designs and trademarks, in research institutions located in developing countries have received limited treatment in the extant literature.

Details

Education + Training, vol. 62 no. 7/8
Type: Research Article
ISSN: 0040-0912

Keywords

Open Access
Article
Publication date: 31 December 2011

Jung Taik Hyun and Jin Young Hong

In this paper, we examine the comparative advantage of Korea and China while focusing on their technology level. The three digit SITC (Standard International Trade Classification…

Abstract

In this paper, we examine the comparative advantage of Korea and China while focusing on their technology level. The three digit SITC (Standard International Trade Classification) data is classified by technology level and the revealed comparative advantage (RCA) is derived from 1992-2009 by using UN COMTRADE data. For careful interpretation of the comparative advantage and technology levels, we also examined intra-industry trade and unit values of bilateral Korea-China trade, and semi-conductor industry technology. We found that the revealed comparative advantage has moved from low technology products to high technology products in Korea. China still maintains a comparative advantage in low technology products such as textiles and clothing, but at the same time, China’s high and medium-high technology products have recently gained a comparative advantage. The perception that China only has a comparative advantage for labor intensive products with low technology should be changed based on our analysis. However, China’s advancement in technology should not be overestimated. When comparing the unit value of basic materials of Korea’s and China’s exports, we found that Korea’s export product prices are on average higher than that of China’s, although the gap is reducing. A wider technology gap between Korea and China still exists in the semi-conductor industry, which is one of the most advanced high technology industries throughout the world.

Details

Journal of International Logistics and Trade, vol. 9 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 5 September 2008

Sergios Dimitriadis and Eric Stevens

The purpose of this paper is to suggest an integrated framework for designing, implementing and evaluating a customer relationship marketing (CRM) system in service companies…

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Abstract

Purpose

The purpose of this paper is to suggest an integrated framework for designing, implementing and evaluating a customer relationship marketing (CRM) system in service companies, based on a gap analysis.

Design/methodology/approach

The paper summarizes key findings of previous research on CRM internal (organizational) success/failure factors, adds a customer perspective on CRM expectations and perceptions, and links these internal and external factors using a systemic gap approach.

Findings

The paper finds that viewing a relationship as a value and as a quality driver should lead managers to consider expectations as a mean to design appropriate interaction flows with customers. Also, relationship expectations from customers' point of view could be used as a segmentation variable to identify customer relationship profiles and address them with specific means. Finally, the integrated perspective underlines the importance of coordination and coherence among all organizational, technological and human components of the CRM system for the effective relationship quality management. Thus, the suggested DIE CRM gap model can be used by managers as a relationship quality diagnosis and problem‐recovery tool leading to recommendations at each stage of their action plan.

Research limitations/implications

The integration of customer‐related CRM success factors as well as the suggested gap measurement approach opens several research opportunities in both methodological and conceptual issues on assessing a CRM strategy.

Practical implications

In the process of designing, implementing and evaluating a CRM strategy and system, managers should integrate customers' expectations and reactions to such strategy. The gap model provides a tool to identify critical points of successful CRM operations and suggests actions to deal with them.

Originality/value

Customers' reactions to CRM strategies and actions have not been given appropriate attention, nor have they been linked to internal company's operations. Similarly, although the gap analysis approach was proved to be very useful in other settings, such as measuring service quality, no application of it to CRM has been suggested. The paper offers new insights in both of these fields.

Details

Managing Service Quality: An International Journal, vol. 18 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

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