Influence of Product Innovation Strategy on Performance of Large Manufacturing Firms in China


  • Yang Zhou Xiao Fudan University
  • Li Hajar Fudan University
  • Haoyu Kang Hutahayan Fudan University



Product innovation is a business growth strategy that aims to create new value by improving existing products and developing new ones. Thus, the study sought to examine the influence of product innovation strategy on the performance of large manufacturing firms in China. The study used a descriptive research design. The targeted population included selected large manufacturing firms in Beijing. The observation unit entailed the managers and those employees in the middle management level, such as supervisors. The collection of the data was done using the questionnaires. Th study findings showed that product innovation strategy is positively and significantly related to performance (β=0.684, p=0.004). It was found that product innovation strategy explains 15.74% of the variations in the performance of manufacturing firms in China. The research concluded a positive relationship exists between product innovation strategy and performance. In ensuring product innovation, the firm enhances the quality of manufacturing in the elements of the existing products. The company likewise develops fresh items with components that vary completely from the existing ones. The study recommended that firms develop an environment that cultivates product innovation. Companies should continually encourage product innovation as this technique provides a framework for developing new products or improving existing items' performance, cost or quality. Manufacturing firms need to execute policies that urge a process innovation culture. Firms devoted to constant innovation and change need to establish a set of standards and processes. The aspect of product innovation should be put as one of the enabling strategies that could drive the performance of the companies and increase their competitive advantage, thus higher performance.

Keywords: Product innovation strategy, performance, large manufacturing firms, China

Author Biographies

Yang Zhou Xiao, Fudan University

Postgraduate student, Fudan University

Li Hajar , Fudan University

Lecturer, Fudan University

Haoyu Kang Hutahayan, Fudan University

Lecturer, Fudan University


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How to Cite

Xiao, Y. Z. ., Hajar , L. ., & Hutahayan, H. K. . (2022). Influence of Product Innovation Strategy on Performance of Large Manufacturing Firms in China. Journal of Strategic Management, 6(4), 16–25.