Proper

Abstract

Our first goal of this study is to check whether product and process innovation is effective on corporate performance in Chinese companies. As second goal, we tried to find if there is a difference in that relationship by the size of companies. To achieve those two research goals, we conducted surveys and empirical studies using validity check and regression model. As the results, we found that, in Chinese companies, product and process innovation is effective in overall sample companies. Furthermore, only product innovation is effective in small sized companies, while both product and process innovation are effective in large sized companies in Chinese industries. This gives us an implication that small sized companies in China have to focus on product innovation to improve performances and, on the other hand, large companies on both product and process innovation to be competitive.