 Picturing firms' institutional capital-based radical innovation under China's institutional voidsYu Gao, Shanxing Gao, Yunyue Zhou and Kuo-Feng Huang Journal of Business Research, 2015, vol. 68, issue 6, 1166-1175 Abstract: This study provides an institutional framework to interpret firms' resource management in China. We identify the formal and informal institutional capital that firms acquire via their relational network and solicit from the government, and their distinctive effects on firms' radical innovation. We address how firms' utilization of the formal and informal institutional capital would be influenced by their multi-level contexts (local context, market context, and organizational context). Using a survey data from 280 Chinese high-technology firms, we find that firms' informal institutional capital has a higher positive effect on firms' radical innovation than the formal institutional capital does. The effects of firms' formal institutional capital on radical innovation would be higher in the complex market, and for the state owned enterprises, whereas the effect of firms' informal institutional capital on radical innovation would be higher in the developed provinces but lower in the complex market. Keywords: Formal institutional capital; Informal institutional capital; Radical innovation; Market complexity; Institutional development level; Ownership (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:6:p:1166-1175 DOI: 10.1016/j.jbusres.2014.11.011 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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