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The impact of a firm’s internal control mechanisms on the choice of innovation mode

Authors
  • Liu, Xinmin1, 2
  • Li, Yuan1
  • Su, Zhongfeng1
  • Feng, Jinlu1
  • 1 Xi’an Jiaotong University, School of Management, Xi’an, 710049, China , Xi’an (China)
  • 2 Shandong University of Science and Technology, Institute of Economy and Management, Qingdao, 266510, China , Qingdao (China)
Type
Published Article
Journal
Frontiers of Business Research in China
Publisher
Springer Singapore
Publication Date
Feb 01, 2007
Volume
1
Issue
1
Pages
91–101
Identifiers
DOI: 10.1007/s11782-007-0006-z
Source
Springer Nature
Keywords
License
Yellow

Abstract

A firm’s internal control mechanisms may have a significant influence on the choice of innovation mode. Therefore, based on the research on the internal control mechanisms of companies, we developed a model to explore the relationship between a firm’s internal control mechanisms and the choice of innovation mode. Using a sample of 585 Chinese firms, this study tests the proposed model. Results show that strategic control has a positive relationship with radical innovation, but a negative relationship with incremental innovation, while financial control has a negative relationship with radical innovation, but a positive relationship with incremental innovation.

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