Mediating effect of company size on relationship between product and process innovation and corporate performance in China

Abstract

The first goal of this study is to check whether product and process innovation has a positive effect on corporate performance in Chinese industry. Our second goal is to find whether there is a difference in that relationship by the size of companies. To achieve research goals, we conducted surveys and empirical studies using validity check and regression model As the results of the studies, our findings are as follows: in Chinese industry, both product innovation and process innovation are effective on corporate performance in sample companies. Furthermore, only product innovation has positive effect on performance in small sized companies, while both product and process innovation have positive effect in large sized companies in Chinese industry. This result offers us a managerial implication that small sized companies in China have to focus on product innovation to improve performances and, on the other hand, large companies on both product and process innovation to get competitive advantage. © 2017 International Information Institute