Open Access

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

Frontiers of Business Research in ChinaSelected Publications from Chinese Universities1:6

https://doi.org/10.1007/s11782-007-0006-z

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.

Keywords

strategic control financial control radical innovation incremental innovation

Notes

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