The inner circle of technology innovation: A case study of two Chinese firms

• A case study is conducted to examine the dynamic process of technology innovation of two Chinese firms.
• Chinese firms exhibit a combined set of strategic, organisation and operational innovation.
• Some human resource management strategies help build technology capabilities.
• Internal capabilities enable firms to adapt, learn, create, and drive further technology innovation.

In the era of information economy, Chinese firms have realised that technology innovation is fundamental for organisations to gain competitive advantages in the global market. This case study evaluates the drivers and antecedents of technology innovation of two emerging Chinese multinational firms. Institutional theory, the resource-based view and the competency-based strategic perspective are used as the basis for case analysis. The findings show some similarities and differences between the growth of Chinese multinational firms and those of more traditional ones. Chinese firms appear not to follow single innovation pathways but take multiple routes combining several types of innovation, such as strategic, organisational and operational innovation. The key component in the successful technology innovation process among Chinese firms was found to be in alignment with several human resource management strategies. The case study concludes with discussion on managerial and pedagogical implications. These help address inherent differences in the innovation management process between emerging Chinese and established multinational firms.