Research on Factors Composition Model of Independent Innovation Capability
for High-tech Enterprises Based on Factor Analysis
Xiang-dong Li1, Shu-qiang Wang1, Ling Ma1, Shu-cheng Luo1, Shuo Wang2
1
School of Economics and Management, Hebei University of Technology, Tianjin, China
Economic and Management Department, Nankai University Binhai College, Tianjin, China
(lee96xd@163.com, wsqxaf@126.com, maling79@163.com, lsc@hebut.edu.cn, tarzen4@hotmail.com)
2
Abstract - With the time gradually reduced of high-tech
enterprises turning research results into productive, the
factors composition problem of independent innovation
capability for high-tech enterprises are get more and more
attention. From the point of enterprises’ innovation activities
and innovation methods application, twelve concept generics
were established through study on existing achievements and
business interviews. Measurement items of the twelve
concept generics were put forward by content validity
analysis and project analysis. Via using questionnaires to
collect sampling data, the construction validity and internal
consistency reliability of the questionnaires were inspected.
Through applying the factor analysis method, the factors
composition problem of independent innovation capability
for high-tech enterprises was analyzed. The factors
composition model of independent innovation capability for
high-tech enterprises was established.
Keywords - Composition, factor analysis, high-tech
enterprises, independent innovation capability,
I. INTRODUCTION
In today's world, biological and medical technology,
electronic and information technologies, new materials
and advanced manufacturing technology achieved an
unprecedented development. Scientific and technological
progress and innovation is a decisive force for social
development. The independent innovation capability in
enhancing national competitiveness, promote economic
development, improve enterprise efficiency plays an
increasingly important role.
At present, the research to the independent
innovation ability at home and abroad is mainly from the
perspective of innovation process, innovation systems and
creative behavior. The study on the capability factors
composition model based on the innovation process gains
certain dominance. Muller proposed that innovation
capability was the common result of the new product
research and development capabilities, technical
improvement capabilities, reserve capabilities and
organizational abilities [1]. Some scholars believe that
nature of independent innovation is technology
innovation, which is achieved through acquiring
technology development control powers and autonomous
powers.
____________________
Supported by the Hebei Province Science and Technology Support
Program under Grant Numbers 12212112D and the Natural Science
Foundation of China under Grant Numbers 70972050.
Alder and Burgelman give the composition of
technological innovation capacity [2] [3]. Wang et al. put
forward that the independent innovation capability of
enterprises included potential resource of technological
innovation,
technological
innovation
activities,
technological innovation output capacity, and technology
[4]
innovation environment . Huang et al. concluded the six
critical dimension of the independent innovation
capability from the perspective of enterprises’ innovation
[5]
subject and the innovation process . Yuan considered
that it included innovative resource input capability,
innovative resource allocation capability, and output
[6]
capacity of innovation achievements . Hao brought out
that it included technical capacity and network capacity
[7]
. Wan et al. thought that it included input capability of
independent innovation, output capability of independent
innovation, running ability of independent innovation, and
[8]
independent innovation environment support capability .
Huang and Liu divided the independent innovation
capability into three levels, including innovation core
competence, innovation key competencies, and innovation
[9]
base ability . Zhang thought that it included factor
inputs ability of independent innovation, research and
development ability, innovation production capacity, new
products marketing capabilities, and innovation
[10]
management ability
. Gao et al. divided it into the
ability to select, research and development ability,
integration capabilities, and learning ability from the
[11]
perspective of knowledge integrated management
.
Existing research on understanding of the innovation
process relatively close, but innovation process standards
are not consistent, so many experts propose a variety of
[12-15]
innovative process models
. This makes study results
based on independent innovation capability of the
innovation process can be accumulated in less. Existing
results is mainly to research from a perspective of
qualitative. Lacking of the collection of samples based on
adequate theories, to establish model and undertake
statistical analysis.
Through the analysis of existing research on
independent innovation capability, innovation capability
reflects not only on the creative output and behavior,
more potential for innovation. Innovation potential is also
reflected in the innovation processes of all kinds of
creative activities, and innovation methods have a
significant impact to the innovation potential and
innovation activities. Compared with traditional
technologies, high-tech has "seven high", "seven new"
feature. They are high investment, high yield, high
intelligence, high difficulty, high competition, high risk,
high potential energy, new knowledge, new technology,
new methods, and new technology, new equipment, new
material and new product. Innovation methods for
technology and institutional innovation capability of hightech enterprise have an obvious role. In this paper, authors
argue that it is more suitable for researching on the factors
composition of the independent innovation capability for
high-tech enterprises from the perspective of innovation
processes and innovation methods.
II. CONTENT ANALYSIS AND TEST ITEMS OF
INDEPENDENT INNOVATION CAPABILITY
A. Encoding Results of the Interview Content
In order to effectively collect independent
innovation information about the high-tech enterprises,
Semi-structured interviews was used. Combined with the
interview process, we collected relevant information,
carried out content analysis and refinement.
Based on study of the independent innovation
capability, we focused on two aspects taking into account
the independent innovation capability. One hand is
innovation activities capability innovation processoriented, on the other hand is innovation method
supporting capability.
According to the interview data, combined with the
analysis of the domestic and foreign research results about
the capability of independent innovation, we selected two
PhD students and three Masters of management science of
management to encode and analyze the interview data of
the enterprises. Considering the relevance of the content
and information in general, twelve concept generic
formed initially is as follows: future foreseeing capability,
scientific thinking capability, requirement elicitation
capability, management customer relationship capability,
technology forecasting capability, concept formation
capability, R&D and design capability, manufacturing
capability, sales income capability, assumption
recognition capability, scientific method master
capability, and scientific tool application capability.
B. Measurement Items of the Independent Innovation
Capability
According to the twelve concept generics,
measurement items of factors composition of independent
innovation capability were designed on the basis of the
theoretical analysis, interviews and existed scales.
The measurement items of future foreseeing
capability are as follows: entrepreneur can be able to
withstand intense pressure, and take risks and explore
during the management predicament (FF1); enterprise can
timely perceive external threats (FF2); enterprises seek
proactively favorable development opportunities, identify
risks, and compete for greater development (FF3);
enterprise can seek initiatively the opportunity available
to it (FF3); enterprise can do its best to capture the
technology fitting the market demand, and to recommend
new brand, new product, new business (FF4); enterprise
can identify the market opportunity, exploit it, initiatively
response to it and then put into effect (FF5); enterprise
has abundant society net resource (FF6); enterprise can
integrate the information from many channels to forcast
the technology development and set it into the strategy
(FF7).
The measurement items of scientific thinking
capability are as follows: enterprise spend shorter time
than its competitor on conceiving the new project (ST1);
enterprise does its best to cultivate the scientific
consciousness of its employees and the knowledge is
shared and exchanged fully between its employees (ST2);
R&D personnel have original creation and grasp the
professional
knowledge of the innovation (ST3);
enterprise can choose exact innovation orientation and
correct innovation route (ST4).
The measurement items of requirement elicitation
capability are as follows：enterprise deeply comprehend
the demand of the consumers (DF1); demand information
can be set in new product development in time and
effectively (DF2); enterprise inclines to spend many
resources on the research on the market and demand
(DF3).
The measurement items of management customer
relationship capability are as follows: enterprise is capable
of market survey, grasp the market feedback information,
and can deeply study the demand of the clients (CR1);
enterprise can do its best to popularize the product and
service and advance the fame of the brand to be accepted
by the society broadly (CR2); enterprise usually collect
market information and make the marketing scheme to
recommend the new product (CR3); marketing personnel
is capable of developing the potential clients and
maintaining the existing clients (CR4); after-sale service
is in high level (CR5).
The measurement items of technology forecasting
capability are as follows: enterprise can penetrate exactly
the development of the technology, and trace the newly
information of the technology development (TF1);
enterprise regards to work out the strategy plan which is
used to guide the important technology decsion（TF2）.
The measurement items of concept formation
capability are as follows: enterprise can use effectively
the inside and outside resources ,for example patent and
technology secret and so on (CF1); enterprise would like
to spend much resource and long time to make feasibility
analysis on market demand, technology and finance of
new product concept (CF2); enterprise can deal with and
integrate information (CF3); enterprise can recommend
rapidly the new product and service (CF4); enterprise can
evaluate rapidly the feasibility of the new product in
market, technology, and finance (CF5).
The measurement items of R&D and design
capability are as follows: enterprise has R&D and design
function branch, and is capable of digesting and absorbing
the new technology (RD1); the plan and object of
developing the new project is clear (RD2); all branches
can cooperate closely to run the new project (RD3);
enterprise has perfect development and operations system
of the new project (RD4); schedule, cost and quality of
the new project can be control to the scheduled level
(RD5); enterprise can develop independently the new
product with good prospect (RD6).
The measurement items of manufacturing capability
are as follows: quality control system is perfect and
effective (MC1); technical level and working efficiency of
personnel is high (MC2); income-producing equipment is
advanced, and manufacturing cost is enough low (MC3);
enterprise usually initiatively introduce the advanced
technology improving the process (MC4); flexibility of
the producing system is enough to satisfy the special
demand of the clients (MC5);.
The measurement items of sales income capability
are as follows: enterprise has enough experience and
capacity to recommend the new product and put it in the
market (SI1); marketing channel is widespread and
efficient (SI2); marketing sales net is perfect (SI3);
product and service satisfy the clients very well (SI4);
enterprise can use fully E-commerce to sell (SI5);.
The measurement items of assumption recognition
capability are as follows: product is changed frequently
(IR1); top level of the enterprise is inclined to recommend
the new idea and product, and the innvation scheme is
drafted out perfectly (IR2); enterprise has the atmosphere
of regarding talent and encouraging the innovation
thinking (IR3); enterprise regards that the decision made
by the enterprise should fit the market change (IR4);
enterprise can evaluate product originality (IR5);
enterprise assigns the given personnel to collect, keep and
answer the new idea (IR6).
The measurement items of scientific method master
capability are as follows: enterprise can apply all kinds of
technology and knowledge for new project development
(SM1); enterprise takes the train heavily and provides the
personals good train and sets up stable train scheme
(SM2); The amount of patent application raise stably
(SM3); enterprise can make use of other organization to
provide the R&D engineers the innovation method train
(SM4).
The measurement items of scientific tool application
capability are as follows: train to personnel is practical
and effective, and technology and management difficulty
can be solved more and more perfectly (STA1); computer
assistant innovation system can be used substantially in
the course of developing the project (STA2); informationbased communication is carried out fully (STA3);
enterprise can integrate several kinds of innovation
method and instrument, and search for and improve the
innovation method applying system (STA4).
III. FACTOR ANALYSIS OF THE FACTORS
COMPOSITION OF INDEPENDENT INNOVATION
CAPABILITY
A. Content Validity Analysis
Content validity means how much degree of the
measuring points reflecting the conception. Qualitative
and quantitative method can all be used in measurement
research. In the paper, quantitative method was used to
test the match degree between the items and the definition
of each concept generic. Firstly, 30 valuators were
selected including 12 domain experts, 5 doctoral
candidates and 12 master’s candidates. Then, the concept
generics’ definition and the measurement items were
given to them, and they need to distribute each item to the
reflecting concept generic. Finally, according to the
evaluation results of 30 valuators, the scores of each item
in each concept generic were calculated. The item was
proved to reflect the concept generic if the score was
above 0.6. The score formula of each item in the concept
generic is as follows:
n
S j   xi / 5n
(1)
i 1
Among the formula: “Sj” is the score of the item of
number “j” in each concept generic. “xi” is the evaluation
result given by the valuators. ”n” is the number of the
valuators.
Through score calculation of the evaluation results,
the items of FF1, FF2, FF6, DF1, CF4, CF5, RD6, IR1,
IR3, IR4, SM2, and STA3 were deleted because the score
of them was below 0.6, and the other items were reserved.
Meanwhile, according to the valuators’ suggestions, the
items of TF3 and CF6 were added. TF3 was added to
technology forecasting capability, which means “the
technical route can be used to support the business
strategy and for technical orientation”. CF6 was added to
concept formation capability, which means “the possessed
quantity of patents were above average level of the same
industry”.
B. Item Analysis
Item analysis is used to calculate the critical ratio
(CR) of each item in the questionnaire. In the paper, 27%
samples having higher scores were divided into the higher
score group, and 27% having lower scores were divided
into the lower score group. After content validity analysis,
the questionnaire was designed by Likert scale of 5
points. The questionnaire was provided to 20 companies
which we had interviewed. 360 cents of questionnaire
were sent out and 323 cents taken back (the collecting rate
is 89.7%). After selection of the 323 cents of
questionnaire, we got the valid questionnaire 261 cents
(the valid rate is 80.8%). Then item analysis was done
with the valid questionnaire by SPSS20.
According to the critical ratio of each item, 6 items
didn’t reach the significant level. They are FF3, CR1,
CR4, RD1, SI3 and SI5. So those items were deleted and
the other items reserved. Through project analysis, 40
items were remained in the questionnaire, and each had
higher identification degree.
C. Factor Analysis
Factor analysis can be used to test the construction
validity of independent innovation capability. Meanwhile,
it is a kind of method to analyze the potential
construction. We can use it to transform the
corresponding variables of independent innovation
capability to several factors. Each factor has
conceptualization significance and be independent to each
other. To test the construction validity and internal
consistency reliability, the data of 261 questionnaires will
be taken to do factor analysis by SPSS20. Then the
components model of independent innovation capability
for High-tech enterprises will be established.
Before factor analysis, KMO (Kaiser-Meyer-Olkin)
measure of sampling adequacy and Bartlett's sphericity
test was done. The results showed that: KMO is 0.858,
which is above 0.5; and the significant coefficient is
0.000, which is below 0.01. Then the scale was concluded
to be suitable for factor analysis.
Through factor analysis at the first time, we found
the extraction value of each item was above 0.4. We got 8
factors whose Eigen value greater than 1, and the total
rate of variation interpretation was 82.691%. Through
further analysis, it was found that: (1) cross load existed
in some item; (2) the number of items was small in some
factors; (3) some item s aggregated in the same factor, but
the content meaning had large difference. For example,
the eighth factor included only one item that the load
coefficient higher than 0.4, but lower than 0.5. Therefore,
the items should be adjusted or deleted. Through several
times of exploration, 15 item s were deleted as FF5, ST2,
ST3, DF3, TF2, TF3, CF2, CF3, RD3, RD4, MC1, SI1,
SI4, STA1, CR2. Then 25 items were remained for further
analysis.
Through factor analysis at the second time, we found
that KMO is 0.863 and the significant coefficient is 0.000.
So we concluded that the questionnaire of 25 items was
suitable for factor analysis.
Through analysis of internal consistency reliability
for the remained 25 items, the Cronbach’s α of each factor
and the whole scale were all above 0.6. As shown in
TABLE I, the questionnaire of 25 items had good internal
consistency reliability.
Finally, we got five factors by factor analysis, and
the total rate of variation interpretation was 83.871%, as
shown in TABLE II.
TABLE I
THE INTERNAL CONSISTENCY RELIABILITY OF EACH FACTOR AND
THE WHOLE SCALE（N=261）
Cronbach
’s α
Factor
1
Factor
2
Factor
3
Facto
r4
Factor
5
The
whole
scale
0.813
0.775
0.762
0.831
0.805
0.861
TABLE II
THE FACTOR ANALYSIS RESULTS OF INDEPENDENT INNOVATION
CAPABILITY FOR HIGH-TECH ENTERPRISES（N=261）
item
1
2
3
4
Factor1：innovative methods acquiring and application
SM3
.940
.013
.234
.039
ST4
.936
.011
.222
-.002
STA4
.925
.012
.215
.005
SM4
.902
.062
.156
.031
SM1
.867
.080
.159
.016
STA2
.792
.132
.276
.075
ST1
.723
.098
.233
.084
Factor2：transformation of innovation
MC2
.052
.906
.243
.170
RD2
.017
.903
.274
.190
MC3
.015
.903
.249
.195
MC5
.008
.861
.230
.171
RD5
.012
.830
.270
.223
MC4
.224
.620
.175
.146
Factor3：fuzzy front end innovation
IR5
.311
.289
.856
.029
CF6
.302
.291
.856
.036
DF2
.326
.308
.833
.055
IR2
.288
.251
.783
.032
CF1
.330
.297
.760
.040
IR6
.316
.300
.726
.051
Factor 4：technical strategy innovation
TF1
.006
.258
.022
.914
FF7
.017
.230
.003
.906
FF4
.000
.334
.066
.901
Factor 5：commercialization
SI2
.007
.122
.046
.209
CR3
.074
.256
.063
.239
CR5
.147
.385
.100
.109
Rate of variation
38.819% 23.258% 11.745% 5.689%
interpretation
Total rate of
variation
83.871%
interpretation
5
.024
.013
.045
.010
.050
.033
.164
.062
.077
.060
.008
.031
.186
.089
.094
.105
.023
.030
.005
.133
.168
.062
.865
.748
.726
4.360%
According to the results of factor analysis, the
independent innovation capability of high-tech enterprises
was composed of five factors, named innovative methods'
acquiring and application, transformation of innovation,
fuzzy front end innovation, technical strategy innovation
and commercial capability. The total rate of variation
interpretation was 83.871% without cross load. The load
coefficient of each factor was all above 0.6. Therefore, the
components model of independent innovation capability
for High-tech enterprises was established, as shown in
Fig.1.
IV.
CONCLUSION
High-tech enterprises are important composition of
national innovation system. The capability of independent
innovation is closely correlated with the development of
high-tech enterprise. So it is necessary to study the
composition structure of independent innovation
capability. Based on systematic analysis of present
research results, enterprise interview process and problem
REFERENCES
Fig.1.Factors composition model of independent innovation
capability for high-tech enterprises.
was designed in detail. Then “Rolling Snowball” method
is used to interview enterprises and collect research data
in the paper. Through data coding by Nvivo8, 12 concept
generic are formed including future foreseeing capability,
scientific thinking capability, requirement elicitation
capability, management customer relationship capability,
technology forecasting capability, concept formation
capability, R&D and design capability, manufacturing
capability, sales income capability, assumption
recognition capability, scientific method master capability
and scientific tool application capability. On the basis, the
measurement item of independent innovation capability is
established by content validity analysis. According to
project analysis of investigation results on high-tech
enterprises, the items with higher identification degree
remained. The valid questionnaire is used for factor
analysis, after KMO and Bartlett's sphericity test. Then
five factors of independent innovation capability for hightech enterprises were obtained, which includes innovation
methods acquiring and application, transformation of
innovation, fuzzy front end innovation, technical strategy
innovation and commercial capability. Therefore the
factors composition model of independent innovation
capability for high-tech enterprises was established.
The independent innovation capability of high-tech
enterprises is a comprehensive ability involving various
complex factors. It is a set of strategy, assumption,
research and development, design, manufacture,
commercialization and method. This research aimed at the
problem of independent innovation capability of high-tech
enterprises, and considered their characteristics of “Seven
High” and “Seven New”. Therefore the factors
composition of independent innovation capability for
high-tech enterprises was explored in the paper, from
perspective of the role of technology in innovative
activities and method support for innovation activities.
ACKNOWLEDGMENT
We would like to appreciate the assistance of research
group members who helped to draft the paper.
[1] S. Muller, “Endogenous innovation waves and economic
growth” , Structural Change and Economic Dynamics, no.
3, pp. 1-18, 2005.
[2] P. S. Adier, and A. Shenbar, “Adapting your technological
base: the organizational challenge” , Sloan Management
Review, vol. 32, no. 1, pp. 25-37, 1990.
[3] A. L. Frohman, “Personal initiative sparks innovation”,
Research Technology Management, vol. 42, no. 3, pp. 6172, 1999.
[4] T. S. Wang, and Z. X. Feng, “Supporting products selfinnovation” (in Chinese). Science of Science and
Management of S. & T, pp. 126-130, Aug. 2008.
[5] Y. L. Huang, B. Wu, and C. Y. Ye, “Analysis on the key
factors of enterprise independent innovation competence”
(in Chinese), R&D Management, vol. 21, no. 1, pp. 24-29,
2009.
[6] J. H. Yuan, and J. J. Wang, “Cognitive study of
independent innovation capability of enterprises-case
analysis based on two innovative companies”(in Chinese),
Science & Technology Progress and Policy, vol. 27, no. 12,
pp. 94-96, 2010.
[7] S. B. Hao, “Research on double helix coupling structure
model of enterprise's independent innovation capacity” (in
Chinese), Science & Technology Progress and Policy, vol.
28, no. 14, pp. 83-86, 2011.
[8] J. K. Wan, and H. W. Li, “Differentiate and analyze on selfdetermined innovation and self-determined innovation
capability”(in Chinese), Studies in Science of Science, vol.
26, no. 1, pp. 205-209, 2008.
[9] Y. L. Huang, and Y. R. Liu, “Construction of theoretical
models of enterprises’ independent innovation ability Based
on core competence of corporation”(in Chinese), Journal of
Northwest A&F University(Social Science Edition), vol. 10,
no. 6, pp. 61-65, 2010.
[10] L. Zhang, H. T. Lun, and J. J. Liu, “Comprehensive
evaluation of the independent innovation ability of small
and medium enterprises”(in Chinese), Statistics and
decision making, no. 6, pp. 164-166, 2007.
[11] C. J. Gao, P. Jiao, X. Y. Lin, and H. Y. Luo, “Knowledge
integration countermeasures for improving independent
innovation capability”(in Chinese), Journal of Intelligence,
vol. 29, no. 8, pp. 78-81,31, 2010.
[12] V. Chiesa, P. Coughlan, C. A. Voss, “Development of a
technical innovation audit”, Journal of Product Innovation
Management, no. 13, pp. 105-136, 1996.
[13] G. A. Stevens, and J. Berley, “Piloting the rocket of radical
innovation”, Research Technology Management, vol. 46,
no. 2, pp. 16-25, 2003.
[14] X. Q. Chen, “The management of innovative process in
high-tech enterprises” (in Chinese), Economy and
Management, no. 5, pp. 64-66, 2005.
[15] D. Y. Yuan, Z. B. Dong, and X. D. Chang, “Comprehensive
assessment and dynamic analysis of enterprise's technology
innovation capability” (in Chinese), Scientific Management
Research, no. 2, pp. 50-52, 1994.