Shared Vision, Innovational Mechanism and Product Innovation: An Empirical Research in South China

This study combines shared vision theory and innovational mechanism perspectives to develop a general model of product innovation. We analyze this model using a structural equation model approach, with 218 manufacturing and service firms in China are selected as the samples of this study. Our results indicate that internal shared vision positively affects innovational mechanism, and innovational mechanism has significant effect on product innovation, but shared vision does not have direct impact on product innovation. The results suggest that significant benefits can be achieved for the firm's product innovation by fostering innovational mechanism.