Building firm capability through imitative innovation: Chinese manufacturing SME cases

Abstract

Purpose This study aims to investigate how firm capability can be accumulated with the inputs of learning efforts targeted at resolving barriers existing in the imitative innovation process. This paper takes imitative innovation as a process involving a few stages during which learning efforts are targeted at overcoming barriers existing within each process. Design/methodology/approach The multiple case study approach has been adopted to explore how Chinese manufacturing small and medium enterprises (SMEs) learn and increase their technological capabilities through a continuous process of product refinement and improvement based on imitative innovation. In particular, the authors accentuate the learning efforts that firms must make to cope with various technological barriers Findings It is revealed that during the initial stages of imitative innovation, the organizational learning of Chinese manufacturing SMEs is highly constrained by the limitations of their technological resources and capabilities. It is also found that original equipment manufacturers can play an important role in providing Chinese learners with both explicit and tacit technological knowledge. Originality/value This study investigates how firm capability can be accumulated with the inputs of learning efforts targeted at resolving barriers existing in the imitative innovation process. The multiple case study approach has been adopted to explore how Chinese manufacturing SMEs learn and increase their technological capabilities through a continuous process of product refinement and improvement based on imitative innovation that could add new and great value to this research area.