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

doi:10.1007/s11782-007-0006-z

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Front. Bus. Res. China ›› 2007, Vol. 1 ›› Issue (1) : 91-101. DOI: 10.1007/s11782-007-0006-z

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

LIU Xinmin¹, LI Yuan², SU Zhongfeng², FENG Jinlu²

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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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LIU Xinmin, LI Yuan, SU Zhongfeng, FENG Jinlu. The impact of a fi rm’s internal control mechanisms on the choice of innovation mode. Front. Bus. Res. China, 2007, 1(1): 91‒101 https://doi.org/10.1007/s11782-007-0006-z