Top-down, bottom-up or outside-in? An examination of triadic mechanisms on firm innovation in Chinese firms

Abstract This paper examines the influence of the interaction of three sources of innovation, namely, top-down (bureaucratic structure), bottom-up (high-involvement HRM) and outside-in (outreaching network), on two stages of firm innovation, i.e. invention and commercialization. Using data from 620 large Chinese companies, we found that there was a synergy between the bureaucratic structure and a high-involvement HRM system in influencing firm innovation. Social networks were most effective in promoting firm innovation in the presence of a high-involvement HRM system. The bureaucratic structure inhibited social networks in contributing to firm innovation. Ideas for future research and practical implications are discussed.