Innovation potential in Chinese and German SMEs: An empirical study

The aim of this study is to analyze and to compare the status quo concerning the innovation potential in Chinese and German small and medium sized companies. The study is auditing the management of the innovation process in 163 German and 173 Chinese SMEs by analysing five success factors: strategic orientation, effective external linkages, supporting processes, supportive organisational context, and organisational learning processes. The empirical findings indicate that the German SMEs are significantly better able to manage some of the success factors for innovation. The findings can be used to explain the competitive position of the companies from both countries, and to take dedicated measures for the improvement of their innovation potential in order to survive in the global competition.