Ownership Concentration and Product Innovation in Chinese Firms: The Mediating Role of Learning Orientation

Yuan Li, Hai Guo, Yaqun Yi and Yi Liu

Management and Organization Review, 2010, vol. 6, issue 1, 77-100

Abstract: Drawing on institutional theory, this study empirically examines the relationship between a firm's levels of ownership concentration and product innovation and the mediating effect of learning orientation, using a sample of 351 Chinese firms. Does ownership concentration hinder or promote firm innovation? Perspectives on this relationship are divergent. This study examines the link between ownership concentration and product innovation and further examines whether and how ownership influences firm innovation through organizational learning. The results suggest that ownership concentration has an inverse U-shaped relationship to product innovation and to learning orientation. In addition, learning orientation mediates the curvilinear relationship between ownership concentration and product innovation. We discuss the study's contributions, managerial implications and directions for future research.

Date: 2010
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