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Knowledge Codification, Exploitation, and Innovation: The Moderating Influence of Organizational Controls in Chinese Firms

Published online by Cambridge University Press:  02 February 2015

Yuan Li ,
Soo-Hoon Lee ,
Xiyao Li  and
Yi Liu
Yuan Li
Affiliation:
Shanghai Jiaotong University, China Xi'an Jiaotong University, China
Soo-Hoon Lee
Affiliation:
Old Dominion University, USA
Xiyao Li
Affiliation:
Xi'an Jiaotong University, China
Yi Liu
Affiliation:
Shanghai Jiaotong University, China Xi'an Jiaotong University, China
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Abstract

This study examines how firms use organizational controls in the knowledge exploitation process to enhance endogenous innovation. Some past studies have shown that controls restrict the flexibility needed in innovation, whereas others have shown that controls enhanced innovation by directing the efforts of research and development professionals. Thus, we extend the theoretical development of organizational control theory to examine how different types of organizational controls (clan, behaviour, and output controls) play different roles at different points in the innovation process. First, we propose that codifying knowledge enhances its level of exploitation, with clan control serving as a moderator. Next, we propose that knowledge exploitation enhances endogenous innovation with behaviour and output controls serving as moderators. Our results from a sample of 607 Chinese manufacturing firms show that clan control moderated the knowledge codification–exploitation relationship positively. Behaviour control moderated the knowledge exploitation–innovation relationship positively, but output control had an inverse U-shaped moderating influence in this relationship. The results indicate that examining different types of organizational controls at different points in the knowledge management process provides a more comprehensive understanding for the role of controls in innovation.

Keywords

endogenous innovationknowledge codificationknowledge exploitationorganizational control自主创新知识解码知识应用组织控制
Type
Articles
Information
Management and Organization Review , Volume 6 , Issue 2 , July 2010 , pp. 219 - 241
Copyright
Copyright © International Association for Chinese Management Research 2010

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